STRIKE RESOURCES LIMITED — Interim / Quarterly Report 2019

Jul 25, 2019

Quarterly Report for period ended 30 June 2019

QUARTERLY REPORT

COMPANY DETAILS

QUARTERLY ACTIVITIES

ABN : 94 088 488 724

PRINCIPAL AND REGISTERED OFFICE Level 2 23 Ventnor Avenue West Perth WA 6005

T (08) 9214 9700 F (08) 9214 9701

W www.strikeresources.com.au E info@strikeresources.com.au

ASX CODE SRK

SECURITIES ON ISSUE 30 June: 145,334,268 listed shares 25 July: 167,134,268 listed shares

BOARD OF DIRECTORS

Farooq Khan (Chairman)

William Johnson (Managing Director)

Malcolm Richmond (Non-Executive Director)

Matthew Hammond (Non-Executive Director)

Victor Ho

(Director)

COMPANY SECRETARY Victor Ho cosec@strikeresources.com.au

Strike Resources Limited (ASX:SRK) ( Strike ) presents its Quarterly Report for the quarter ended 30 June 2019. As at 30 June 2019, Strike had net assets of ~$3.752 million (comprising ~$1.35 million gross cash, ~$1.341 million investments[1] and ~$1.168 million in other assets less provisions/accruals/trade creditors of ~$0.107 million).

Paulsens East Iron Ore Project, Pilbara (Australia).

Subsequent to the end of the June Quarter, the Company announced a significant Maiden JORC Inferred Resource of 9.1 Million Tonnes of 64.3% Fe at its 100% owned Paulsens East Iron Ore Project in the Pilbara. The company is examining the potential to quickly develop a direct shipping ore (DSO) mining operation from this project to take advantage of current high iron ore prices.

Apurimac Iron Project (Peru)

The Company has executed a Cooperation and Confidentiality Agreement with the consortium undertaking a Peru Government sponsored study investigating the economic benefits of a proposed railway which would link Strike’s Apurimac Iron ore Project to a proposed new multi-user port facility. The Company is also investigating opportunities to generate near term cashflow and value from its Peru iron ore assets, to take advantage of current high iron ore prices.

Solaroz Lithium Brine Project (Argentina)

During the quarter the Company completed an Environmental Impact Assessment (EIA), as a pre-cursor to begin an extensive exploration programme to test for the occurrence of lithium-rich brine Solaroz Concessions.

Burke Graphite Project (Queensland)

Metallurgical test work has continued this quarter on samples of graphite material from the Burke Graphite Project, to examine the potential suitability of the Burke Project graphite for use in electric vehicle ( EV ) batteries.

Capital Raising

On 18 July 2019, the Company raised $0.981 Million through a placement of 21,800,000 shares at 4.5 cents per share to professional and sophisticated investors.

FOR FURTHER INFORMATION

William Johnson Managing Director wjohnson@strikeresources.com.au

26 July 2019

About Strike Resources Limited (ASX:SRK)

Strike Resources is an ASX listed resource company which owns the high grade Apurimac Magnetite Iron Ore Project and Cusco Magnetite Iron Ore Project in Peru and the Paulsens East Iron Ore Project in Western Australia. Strike is also developing a number of battery minerals related projects around the world, including the highly prospective Solaroz Lithium Brine Project in Argentina, the Burke Graphite Project in Queensland and a lithium exploration tenement in Western Australia.

1 Investments comprise liquid investments in a diversified portfolio of various ASX 200 listed resource stocks

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Quarterly Report for period ended 30 June 2019

CAPITAL RAISING

Subsequent to the end of the Quarter, the Company secured immediate funding of $0.981 million through a placement of 21,800,000 shares at 4.5 cents per share, being the maximum available under the Company’s 15% placement capacity under the ASX Listing Rules.

Patersons Securities Limited acted as Lead Manager to the placement to professional and sophisticated investors.

The funds raised will be used to fast track development of the Paulsens East Iron Ore Project and for general working capital purposes.

PROJECTS

Paulsens East Iron Ore Project, Pilbara

On 18 July 2019, Strike reported a significant Maiden JORC Inferred Mineral Resource for its Paulsens East Iron Ore Project (Strike:100%) located in the Pilbara, Western Australia of 9.1 Million tonnes at 63.4 % Fe, 5.6% SiO2 and 3.2% Al2O3 .

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Figure 1: Paulsens East Project Location, West Pilbara.

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The Inferred Mineral Resource Estimate is based upon data derived from two drilling campaigns undertaken by Strike (comprising a total of 66 reverse circulation ( RC ) holes for 3,537 metres drilled) together with an extensive rock chip sampling programme.

A key feature of the Paulsens East Mineral Resource is an approximately 3 kilometre-long ridge of outcropping hematite conglomerate which extends up to 60 metres above the surrounding terrain (refer Figure 2). It is estimated that the outcropping portion contains approximately 2 million tonnes of high grade 62% Fe potential DSO material that may be able to be mined with minimal overburden. Such an operation could be undertaken relatively simply using shovels and trucks, with the material then to be crushed and screened on site prior to transport by road to a suitable port facility for export.

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Figure 2: Paulsens East Hematite Ridge, facing North

Whilst detailed mine planning and metallurgical test work programmes have yet to be completed, Strike believes that, given the quality of the asset and its location and subject to receipt of all necessary approvals and licences, such an operation could be commenced relatively quickly and (potentially using contract mining, crushing and transport operators) for a relatively low up-front capital cost.

Strike has therefore commenced the process to convert the current Retention Licence to a Mining Lease. In addition, Strike has commenced discussions with operators of various nearby port and ship loading facilities and will now proceed to initiate discussions with mining, crushing and transport operators as well as potential offtake partners.

Table 1 summarises the JORC Inferred Mineral Resources within the 58% Fe lower grade cut-off wireframe. These resources extend from the surface to 75 metres below the deepest drill intersection on each cross section.

JORC Category	Fe% Range	Million Tonnes	Fe%	**SIO2% **	**AL2O3% **	P%	S%	LOI%
Inferred	>58	9.1	63.4	5.6	3.2	0.08	0.01	1.95

Table 1: Paulsens East Mineral Resource estimate using a 58% Fe lower cut-off wireframe

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Of the Inferred Mineral Resource referred to above, approximately 2 million tonnes of 62% Fe (with 5.7% SiO2 and 3.0% Al2O3) hematite material occurs above the base of the ridge (as defined by drill hole collars) with minimal overburden.

In addition, there is potential to extend the resource for a strike distance of approximately 2 kms along an arcuate extension of the ridge to the south east. This extension is based on small hematite conglomerate outcrops along the surface and a plus 60% Fe drill intersection at a depth of 20 metres at the eastern boundary of the Retention license.

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Figure 3: Paulsens East Hematite Conglomerate

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Figure 4: Paulsens East Rock Chip Sample

With the recent increase in iron ore prices (and with a number of market commentators forecasting these prices to remain strong for the medium term), Strike has now determined to examine the potential for undertaking a Direct Shipping Ore (DSO) mining operation at Paulsens East using contract mining, crushing and transportation by truck to port then ship to China.

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In this regard, Strike is now progressing to undertake an economic study which will focus on the potential to, in the first instance, target the approximately 2 million tonnes of outcropping 62% Fe hematite material, which in places extends up to 60 metres above surrounding terrain and presents as a 3 kilometre long ridge of outcropping hematite conglomerate.

Strike envisages that such an operation could be undertaken relatively simply using shovels and trucks, with minimal overburden. Excavated material would then be crushed and screened on site prior to transport by road to a suitable port facility for export.

With regard to transportation, Strike has held discussions with operators of several port facilities in the area, with various options being considered from Onslow (233 kilometres from Paulsens East by road) to Port Hedland (600 kilometres).

Strike is of the view that with the current level of iron ore prices, a contract mining, crushing and transportation operation has the potential to deliver significant cashflow for the Company in the near term. Accordingly, Strike now plans to conduct the following activities to advance Paulsens East:

• Undertake detailed metallurgical test work for the deposit including lump to fines ratio, crushing indices, tumble index etc.

• Undertake an economic viability study based upon a contract mining, crushing and transportation operation.

• Restart and conclude Environmental Survey and Native Title Agreements (which were previously commenced but not completed) and other statutory approvals to mine.

• Conversion of the current Retention Licence to a Mining Lease.

Subject to successful completion of the above and prevailing market conditions, Strike would then proceed to:

• Enter into a port access agreement.

• Finalise contract mining and trucking agreements.

• Enter into product offtake agreement(s).

• Initiate any required project financing.

• Commence production and first shipment.

For further reference, refer to Strike’s ASX Announcement dated 15 July 2019: Maiden JORC Resource of 9.1 Million Tonnes at 63.4% Fe – Paulsens East Iron Ore Project in the Pilbara.

Solaroz Lithium Project (Argentina)

Strike holds a 90% interest in the highly prospective Solaroz Lithium Brine Project ( Solaroz ) within South America’s ‘Lithium Triangle’ in North-West Argentina.

Solaroz comprises concessions ( Solaroz Concessions ) totalling 12,000 hectares in area, mostly adjacent to and principally surrounded by concessions held by ASX-listed Orocobre Limited (ASX:ORE - market capitalisation ~A$1 billion) and TSX-listed Lithium Americas Corporation (TSX:LAC - market capitalisation ~C$500 million).

Solaroz is located in the same Salar de Olaroz Basin as and directly adjacent to the producing Salar de Olaroz Lithium Brine Project operated by Orocobre and its JV partner, Tokyo Stock Exchange listed Toyota Tsusho Corporation (TYO:8015).

The location of Solaroz is considered by Strike to be highly strategic and prospective for containing commercial quantities and concentrations of lithium-rich brine, since Strike believes that the aquifer which supplies the lithium-rich brine being extracted by Orocobre is likely to extend under Strike’s Solaroz Concessions. This will be tested by geophysical work and drilling in due course with a view to fast tracking production of lithium carbonate dependent upon these works being successfully concluded.

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Solaroz Concessions

The Solaroz Concessions comprise 8 (eight) exploitation concessions totaling 12,000 hectares (refer Figure 5 ) in Jujuy Province in northern Argentina, approximately 230 kilometres north-west of the capital city of Jujuy. The Solaroz Concessions lie at an altitude of approximately 3,900 metres and are accessed by good quality road infrastructure.

The location is supported by favourable conditions in terms of both the operating environment and local infrastructure. Very limited rainfall combined with dry, windy conditions create the ideal environment for the brine-evaporation process.

The area is also serviced by a gas pipeline which intersects the Solaroz Concessions, high voltage electricity, and paved highways. Three major seaports, Buenos Aires in Argentina, Antofagasta and Iquique in Chile, are serviced by international carriers and are easily accessible by road and/or rail.

The Solaroz Concessions lie over the same Salar de Olaroz Basin from which Orocobre is extracting and processing lithium rich brine for sale as lithium carbonate since 2015. The Solaroz Concessions follow and overlap into the visible white halite salt layer of the ‘Salar’ (salt lake) and extend as substantial flat areas with 1 - 2 metres of elevation to the visible halite area, providing the ideal location and topography for the construction of evaporation ponds.

Strike’s interpretation of the basin architecture is that the aquifer which supplies the lithium-rich brine being extracted by Orocobre (and targeted by other exploration and development companies in the area) extends under the Solaroz Concessions (refer Figures 5 and 6 ).

The Salar de Olaroz is one of a number of land locked salt lakes located high up in the Argentinian Puna Region. The Salar de Olaroz Basin is bounded by a pair of north-south reverse faults that thrust Andes Paleozoic sediment west to east as a result of the Pacific Plate colliding with the South American Plate. This results in the west side of the basin being continually pushed higher which replenishes the sediment fill within the basin.

Strike’s Exploration Target is based on the interpretation that the alluvial deposits upon which the Solaroz Concessions are located (at the North-West corner of the Salar) have been deposited relatively recently and lie directly above the productive deep sand unit of the lithium rich aquifer from which Orocobre is extracting its brine (refer “Deep Sand Unit”, shown in yellow in Figure 6 ). The potential quantity and grade of Strike’s Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Strike’s geological interpretation indicates that the majority of the Solaroz Concessions are likely to lie directly over the productive lithium rich aquifer. Previously published geophysical studies undertaken by Orocobre[2] indicate that the sub-surface brine hosting aquifers appear to extend well outside the boundaries of the visible salt area and to depth and adds evidence supporting the likelihood of lithium rich brine hosted beneath the Solaroz Concessions.

Other exploration and development companies (for example, Advantage Lithium Corp. (TSXV:AAL); Millennial Lithium Corp. (TSXV:ML); Lake Resources N.L. (ASX:LKE) and Galan Lithium Limited (ASX:GLN) have also confirmed through geophysics and drilling that lithium-rich brine hosting aquifers in Argentina tend to extend well outside boundaries of today’s visible salt pans.

During the quarter, Strike paid US$140,000 (A$197k) to the owner of the Solaroz Concessions under the terms of an Option and Purchase Agreement – refer Terms of Acquisition section of SRK’s ASX Announcement dated 13 March 2019: “Strike Secures Solaroz Lithium Brine Project in Argentina’s Lithium Triangle”.

2 Reference: Olaroz Technical Report dated 13 May 2011: Salar De Olaroz Lithium-Potash Project, Jujuy Province, Argentina

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Figure 5: Solaroz Project – Location of Concessions

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Figure 6: Geological cross sections depicting evolution of Olaroz Salar Basin and Strike’s primary target zone for lithium mineralisation

The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

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Completion of Environmental Impact Assessment Report

Subsequent to the end of the quarter, Strike completed the preparation of an Environmental Impact Assessment ( EIA ) Report for exploration work at Solaroz. The EIA Report includes results from collecting and monitoring baseline environmental data and a detailed proposed fieldwork programme covering 2 years of proposed exploration activity. Following a period of consultation with local community groups, the EIA Report will then be submitted to the Jujuy Mining Authority (the provincial authority responsible for approving exploration and mining activities at Solaroz) for review.

Strike’s planned exploration programme (subject to approval of the EIA) consists of geophysical surveys, followed by drilling, sampling and flow rate testing in the event that sufficient brine is intersected.

For further details please refer to Strike’s announcements:

• 13 March 2019: “Strike Secures Solaroz Lithium Brine Project in Argentina’s Lithium Triangle”;

• 17 April 2019: “Strike Commences Solaroz Lithium Brine Project Work Programme in Argentina”.

Lithium in Argentina

Argentina holds the world’s biggest lithium resources (as brine deposits) and is currently the world’s third largest producer of lithium, after Australia and Chile.

One of the key attractions of lithium brine projects in Argentina is their low cost of production compared to hard rock lithium projects – Argentinian (and Chilean) lithium brine projects are well recognised as being the lowest on the lithium carbonate production cost curve.

The principle reason for the low operating cost is that lithium rich brine, once pumped to the surface (typically from aquifers at up to several hundred metres depth) is then transferred to large evaporation ponds, which rely on free energy from the sun and local atmospheric conditions to concentrate the brine. There are generally no environmentally damaging tailings or toxic by-products.

Strike proposes to follow the well-established and proven production methodology for converting lithium-rich brines into lithium carbonate in a similar manner to existing Argentinian based lithium brine producers.

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Apurimac Iron Ore Project, Peru

Strike’s Apurimac Iron Ore Project in Peru is recognised as one of the highest grade, large scale magnetite projects in the world with the potential to support the establishment of a significant iron ore operation.

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Figure 7: Strike Apurimac and Cusco Iron Ore Projects, showing route of proposed Andahuaylas Railway

Over A$50 Million has been expended by Strike since 2005 on acquisition, exploration, study and administration costs relating to its Peru assets.

The exceptionally high-grade +57% Fe magnetite iron at Apurimac is almost twice as high as the grades of magnetite deposits developed in Australia. The Apurimac ore bodies present as continuous broad zones of mineralisation with dominantly high grade, coarse grained magnetite providing comparatively high mass recoveries (>60%) at coarse grind size (>500 microns).

Favourable topography (see Figure 8) indicates the potential for a low mining strip ratio (between 1.2 – 1.8) and the coarse-grained nature of the ore provides significant processing energy savings as only coarse grinding is necessary to liberate the magnetite.

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Figure 8: Outcropping Iron ore at the Opaban 1 ore body

A JORC (2012) Indicated and Inferred Mineral Resource has been defined at the main Opaban 1 and Opaban 3 concessions of 269Mt of iron ore at 57.3% Fe (142 Mt Indicated Resource at 57.84% Fe and 127 Mt Inferred Resource at 56.7% Fe).[3]

Metallurgical testwork on reverse circulation chip samples from the Opaban 1 ore body has returned excellent product grades with low impurities, at coarse crushing with particle sizes of 80% passing 125 and 250 microns:

		%
Fe	68.02	to	68.28
P	0.01	to	0.02
SiO2	1.51	to	1.77
Al2O3	0.30	to	0.35

Table 2: Testwork results showing potential for high grade, low impurity product from Opaban 1 ore

Within this JORC Resource there has also been identified the potential for low impurity Direct Shipping Ore (DSO) material of approximately 67.9 Mt at 61.5% Fe with low impurities (refer Table 3) which could be mined from surface and shallow near surface mineralisation.

3 Refer Strike’s ASX Announcement dated 19 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard

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		%
	Fe	61.5
	P	0.03
	S	0.1
	Al2O3	1.7
	**LOI **	1.0
Table 3: Opaban 1 DSO characteristics

In addition to the current JORC resource, there is significant exploration potential given the deposits are open at depth and along strike (with very promising drill results including 154m @ 62% Fe) with extensive undrilled gravity and magnetic anomalies.

A Pre-Feasibility Study completed in 2008[4] and updated in 2010[5] on the Apurimac Project indicated clear potential for development of a world class iron ore project, with competitive capital costs and very low operating costs:

• The 2008 Pre-Feasibility Study undertaken by Snowden Mining Industry Consultants and SKM utilised a proposed slurry pipeline configuration but considered a range of infrastructure options including a railway. The concentrate pipeline was the preferred transport solution (under the study) as the additional capital cost of building a railway compared to a slurry pipeline outweighed the operational and other benefits of a railway. For further details, refer to Strike’s ASX Announcement dated 23 July 2008: Prefeasibility Results Confirm World Class Prospects in Peru;

• Further infrastructure studies were undertaken by Ausenco Sandwell and SRK Consulting in 2010, including a more detailed technical and costing study on building and operating a dedicated railway. The purpose of these studies was to further compare the economics of the slurry pipeline versus railway infrastructure solutions at various production levels. For further details, refer to Strike’s ASX Announcement dated 23 November 2010: Apurimac Project Update and Strike’s December 2010 Quarterly Report.

In early 2018, the Peru Government signaled its intention to undertake a study into building a 570 kilometre multi-railway, which would connect Strike’s Apurimac Project to a multi-user port on the west coast of Peru.[6]

The development of this railway would provide significantly improved development options for the Apurimac Project, which would be one of the biggest users of the railway. A railway connecting Apurimac to a port would provide Strike the ability to attract premium pricing for high-grade lump and fines products, compared to a concentrate product delivered through an alternative slurry pipeline. In addition, a railway will allow for capital and processing costs at the mine to be substantially reduced, given the considerably simplified process to produce lump and fines products from Strike’s high grade ore compared to producing a slurry concentrate.

Included in the 2008 and 2010 studies referred to above, was a comprehensive study undertaken by international engineering companies into the technical and commercial aspects of building a railway from Andahuaylas to San Juan de Marcona. A detailed route alignment was mapped by Strike, together with capital and operating cost estimates (in the order of +- 20%) relating to:

• track infrastructure;

• equipment, including locomotives, ore wagons, maintenance of way machines, vehicles etc;

• maintenance and operating facilities, including repair shops, tools and equipment, railway offices, communications and train control equipment, bunkhouses and on line buildings; and

• railway system manpower.

• 4 Refer Strike’s ASX Announcement dated 23 July 2008: Prefeasibility Results Confirm World Class Prospects in Peru

• 5 Refer Strike’s ASX Announcement dated 23 November 2010: Apurimac Project Update and Strike’s December 2010 Quarterly Report

6 Refer Strike’s ASX Announcement dated 23 October 2018: Peru Government Awards $13 Million Tender for Andahuaylas Railway Study Linking Strike’s Apurimac Iron Ore Project to Port and 8 February 2018: Peru Government Plans Railway Linking Strike’s Apurimac Iron Ore Project to Port

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During the quarter, the Company executed a Cooperation and Confidentiality Agreement[7] with the consortium undertaking the Government funded railway study, to provide input and assistance to the study. Under this agreement, strike is sharing its earlier railway study referred to above, with the current study consortium and has committed to provide additional assistance as necessary to assist with the current study.

Short to Medium Term Production Potential from Apurimac

Given the time framework for the construction of a potential railway from the Apurimac deposit to the coast is yet to be finalised, Strike believes it is appropriate to examine ways in which it can potentially bring a smaller scale mining and trucking operation into production utilising very high grade surface and near surface mineralisation that is present across the Opaban 1 and Opaban 3 deposits.

As referred to above, within the current JORC Mineral Resource of 269 Mt at 57.3% Fe there has been identified the potential for DSO material of approximately 67.9 Mt at 61.5% Fe (with low impurities) to be mined from surface and shallow near surface mineralisation.

In December 2013, Strike commenced a pilot operation, where approximately 8,000 tonnes of ore was mined from surface outcrops from its concessions by local artisanal miners, using an excavator.

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Figure 9: Excavation of high grade iron ore from Opaban 3, 2013

7 Refer Strike’s ASX Announcement dated 18 April 2019: Strike Enters into Cooperation Agreement with Peru Railway Consortium

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Figure 10: Stockpile created from artisanal mining at Opaban 3 deposit, 2013

Once mined, the ore was transported to a third party crushing plant near the coastal town of Pisco in Southern Peru. After crushing, the ore was sold to a local steel plant for use in their blast furnace to produce steel for the domestic market.

The quality of iron ore product delivered to the plant was consistently superior than the minimum characteristics specified by the plant (refer Table 4).

	%
Fe	> 64
P	< 0.08
S	< 0.08
SiO2	< 4.0

Table 4: Peru steel plant minimum specifications for delivered iron ore

Strike gained valuable experience in the mining and transport of iron ore from its concessions during this pilot programme and believes that, given the current and expected iron ore price in the medium term, the pilot programme can potentially be expanded to produce a small scale but high grade iron ore mining operation in a relatively short period, for export of iron ore to China.

Such an operation would be undertaken in compliance with Peruvian legislation permitting small groups of local ‘artisanal miners’ (that are in the process of being formalised under applicable regulations) to mine up to 350 tonnes per day (or ~125,000 tonnes per annum) from specific portions of a mining concession. This legislation allows for significantly reduced timetables and simplified processes for obtaining environmental and other permitting.

Based upon the pilot production previously undertaken and a review of the DSO material, Strike would target initial production of high grade DSO with low impurities as follows:

	%
Fe	64.35
P	0.07
S	0.07
SiO2	2.85
**LOI **	0.56
Al2O3	0.91

Table 5: Target characteristics of DSO material from Opaban 3

Given Strike’s concessions contain multiple locations of outcropping ore, it is possible that multiple areas could be mined simultaneously by different groups of local artisanal miners under Strike’s direction, thus giving Strike the potential to sell several hundred thousand tonnes of DSO per year to Chinese (and potentially other) buyers.

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Strike is currently actively examining the practicalities of commencing such an operation in the near term and will update the market on this in due course.

Cusco Iron Ore Project, Peru

The Cusco Project lies approximately 150km to the south - east of Apurimac and forms a potential secondary development target for Strike in Peru with an initial Inferred Resource estimate of 104Mt at 32.6% Fe.

Like Apurimac, iron ore mineralisation at the project is coarse-grained and dominated by magnetite, with high grades recorded. Preliminary metallurgical tests indicate a concentrate grade of >65% Fe could be produced from this ore using conventional grinding and magnetic separation processes.

Whilst no detailed work has been undertaken on a railway route between Strike’s Apurimac and Cusco Projects, it is clear that if the Andahuaylas Railway proceeds, a ‘spur line’ from Andahuaylas to Strike’s Cusco Project would (subject to technical and commercial feasibility) be a very sensible consideration, given the proximity of several other major mining projects nearby Strike’s Cusco Project which would also benefit from such a rail link.

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Burke Graphite Project, Queensland

Strike’s Burke Graphite Project (in which Strike holds a ~70% interest) is located in the Cloncurry region in North Central Queensland, where there is access to well-developed transport infrastructure to an airport at Mt Isa (~122km) and a port in Townsville (~783km).

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Figure 11: Burke Graphite Project Tenement Location in North Central Queensland

• A Mineral Resource Estimate ( MRE ) for the Project has defined a maiden Inferred Mineral Resource of[8] :

• 6.3 million tonnes @ 16.0% Total Graphitic Carbon (TGC ) for 1,000,000 tonnes of contained graphite;

• Within the mineralisation envelope there is included higher grade material of 2.3 million tonnes @ 20.6% TGC (with a TGC cut-off grade of 18%) for 464,000 tonnes of contained graphite which will be investigated further.

These grades place the Burke deposit as one of the highest-grade deposits of graphite in the world held by an Australian listed company.

8 Refer Grade Tonnage Data in Table 2 of CSA Global’s Burke Graphite Project MRE Technical Summary dated 9 November 2017 (attached as Annexure A of Strike’s ASX Announcement dated 13 November 2017: Maiden Mineral Resource Estimate Confirms Burke Project as One of the World’s Highest Grade Natural Graphite Deposits).

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Based upon the MRE for the Project referred to above, the following Chart illustrates the TGC grades of published Total JORC Resource/Reserves of selected ASX Listed Graphite Projects relative to the Burke Project.

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Figure 12: Selected TGC% of Published Total JORC Resource/Reserve* vs. Maiden Burke Mineral Resource Estimates

In addition to the high-grade nature of the deposit, the Burke Graphite Project:

• Comprises natural graphite that has been demonstrated to be able to be processed by standard flotation technology to international bench mark product categories. The flotation tests conducted by Independent Metallurgical Operations Pty Ltd ( IMO ) have confirmed that a concentrate of purity in excess of 95% and up to 99% TGC can be produced using a standard flotation process;

• Contains graphite from which Graphene Nano Platelets (GNP) have been successfully extracted direct from the Burke Graphite deposit via Electrochemical Exfoliation (ECE). The ECE process is relatively low cost and environmentally friendly compared to other processes, yet it can produce very high purity Graphene products. The ECE process is however not applicable to the vast majority of worldwide graphite deposits as it requires a TGC of over 20% and accordingly the Burke Deposit has potentially significant processing advantages over other graphite deposits;

• Is located in the relatively safe and mining friendly jurisdiction of Queensland, Australia with welldeveloped transport infrastructure and logistics nearby; and

• Is potentially amenable to low cost open-pit mining.

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Ground EM Survey Results

A ground Electro Magnetic ( EM ) survey was completed during 2018, covering the south-eastern corner of Burke tenement EPM 25443 (North) (drilled by Strike in 2017[9] ) and the Corella tenement EPM 25696 (South) (located ~20 km south of EPM 25443).[10]

The EM survey identified the Corella Prospect as a significant target area for additional high grade mineralisation as well as identifying new zones of increased conductivity adjacent to previously drilled graphite mineralisation at the Burke Prospect.

The Corella Prospect (north east corner of EPM 25696 (South)) EM survey was carried out over outcropping and sub-cropping Geological Survey of Queensland mapped Graphitic Schists - the “Milo beds” - within the Corella Formation. Graphite grading 5 -10% TGC is widespread throughout the outcropping Milo beds and the EM survey was carried out to identify higher-grade areas of mineralisation and identify future drill targets. The survey highlighted an area of approximately 1000m x 500m (refer Figure 13 ) within which conductive features similar to those corresponding to high-grade graphite occurring at the Burke EPM 2543 tenement were identified.

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Figure 13: EM Survey - Corella Prospect, Burke Graphite Project

9 Refer Strike’s ASX announcements dated 13 June 2017: Extended Intersections of High-Grade Graphite Encountered at Burke Graphite Project and 21 June 2017: Further High-Grade Intersection Encountered at Burke Graphite Project

10 Refer Strike’s ASX Announcement dated 26 June 2018: Burke Graphite Project – New Target Area Identified From Ground Electro-Magnetic Surveys

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The conductive features identified at the Corella Prospect appear to be shallow to flat-lying and occur in areas of outcropping and sub-cropping graphite that have rock chips (from previous sampling by Strike) of up to 14.85% TGC[11] .

In addition to identifying the new potential at Corella, the EM survey identified minor structural offsets, together with new zones of increased conductivity at the previously drilled Burke Prospect.

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Figure 14: EM Survey - Burke Prospect, Burke Graphite Project

The EM survey over the south-eastern corner of Burke EPM 2543 (North) was carried out over outcropping and sub-cropping Geological Survey of Queensland mapped Graphitic Schists of the Corella Formation. The survey highlighted the high-grade graphite identified in Strike’s maiden drilling programme[8] and identified minor structural offsets, together with new zones of increased conductivity (refer Figure 14 ). In addition, the survey verified the width and dip of the drill intersected high-grade graphite.

Further metallurgical test work has continued on samples of graphite material taken from the Burke Project to examine the potential suitability of Burke graphite for use in electric vehicle (EV) batteries.

11 Refer Strike’s ASX announcement dated 21 April 2017: Jumbo Flake Graphite Confirmed at Burke Graphite Project, Queensland

19

Quarterly Report for period ended 30 June 2019

Lithium and Gold Exploration Tenements, Western Australia

The North Pilbara hosts a number of lithium and tantalum prospects associated with pegmatites that are related to the Sisters Supersuite of monzogranites and other high end intrusives that intruded the Archeaen greenstone terrain of the East Pilbara approximately 3 billion years ago.

Lithium and tantalum mineralisation occurs either within the pegmatite veins or within alluvials draining the elevated areas containing the pegmatite veins.

In 2016 Strike acquired two exploration licences, EL45/4799 and EL45/4800 in the North-West Pilbara totalling ~31,000 hectares that exist within the extent of the known lithium and tantalum mineral fields in the region, adjacent to licences that have outcropping lithium and tantalum elevated pegmatite occurrences.

Given the widespread cover of thin wind-blown sands and tertiary laterites/duricrusts, the potential of subcropping and shallow buried lithium and tantalum rich pegmatites and alluvial deposits is considered a strong possibility.

These North-West Pilbara tenements are also favourably located close to the Mt York Lithium-Gold Project and other gold deposits and to adjoining tenements held by Kairos Minerals Limited and De Grey Mining Limited, in an area of significant activity based upon reported Novo/Artemis discoveries in the Pilbara (refer Figure 15).

==> picture [432 x 357] intentionally omitted <==

Figure 15: Strike’s North-West Pilbara Tenements (EL 45/4799 and EL 45/4800)

20

Quarterly Report for period ended 30 June 2019

Following reviews of historical information and ground based reconnaissance and sampling programs, Strike relinquished tenement EL45/4799 during the quarter due to lack of prospectivity for the target minerals (lithium and gold).

Strike continues to hold exploration tenement EL45/4800 and is planning further ground based exploration during the current quarter.

==> picture [443 x 339] intentionally omitted <==

Figure 16: Strike’s Paulsens East Tenement (Retention Licence RL 47/7)

For further details, please refer to Strike’s ASX announcement dated 20 November 2017 Gold Potential of Strikes Pilbara Tenements.

21

Quarterly Report for period ended 30 June 2019

LIST OF MINERAL CONCESSIONS

The following mineral concessions were held as at the end of the quarter and currently:

Paulsens East Tenement (Western Australia)

(Strike – 100%)

Tenement No.	Tenement No.		Status	Grant Date	Expiry Date Area(blocks/Ha)	Expiry Date Area(blocks/Ha)	Area(km²)
Retention Licence RL		47/7	Granted	4/12/2014	4/12/2019 ~381 Ha		~3.81
Apurimac Iron		Ore Project (Peru)				(Strike – 100%)
Concession		Area
Name		(Ha)	Province	Code	Title		File No
(1)	Opaban I	999	Andahuaylas	5006349X01	No 8625-94/RPM Dec 16, 1994		20001465
(2)	Opaban III	990	Andahuaylas	5006351X01	No 8623-94/RPM Dec 16, 1994		20001464
(3)	Ferrum 1	965	Andahuaylas	010298304	No 00228-2005-INACC/J Jan 19, 2005		11053798
(4)	Ferrum 4	1,000	Andahuaylas/	010298604	No 00230-2005-INACC/J Jan 19, 2005		11053810
			Aymaraes
(5)	Ferrum 8	900	Andahuaylas	010299004	No 00232-2005-INACC/J Jan 19, 2005		11053827
(6)	Cristoforo 22	379	Andahuaylas	010165602	RP2849-2007-INGEMMET/PCD/PM Dec 13, 2007		11067786
(7)	Ferrum 31	327	Andahuaylas	010552807	RP 1266-2008-INGEMMET/PCD/PM May 12, 2008		11076509
(8)	Ferrum 37	695	Andahuaylas	010621507	RP 1164-2008-INGEMMET/PCD/PM May 12, 2008		11076534
(9)	Wanka 01	100	Andahuaylas	010208110	RP 3445-2010-INGEMMET/PCD/PM Oct	18,2010	11102187
(10)	Sillaccassa 1	700	Andahuaylas	010212508	RP 5088-2008-INGEMMET/PCD/PM Nov	19, 2008	11084877
(11)	Sillaccassa 2	400	Andahuaylas	010212608	RP 3183-2008-INGEMMET/PCD/PM Sept 8,2008		11081449

Cusco Iron Ore Project (Peru)

(Strike – 100%)

Concession	Area
Name	(Ha)	Province	Code	Title	File No.
(1) Flor de María	907	Chumbivilcas	05006521X01	No 7078-95-RPM Dec 29, 1995	20001742
(2) Delia Esperanza	1,000	Chumbivilcas	05006522X01	No 0686-95-RPM Mar 31, 1995	20001743
(3) El Pacífico II	1,000	Chumbivilcas	05006524X01	No 7886-94/RPM Nov 25, 1994	20001746
Solaroz Lithium Brine Project (Argentina)					(Strike – 90%)

Concession	Concession	Area
Name		(Ha)	Province	File No
(1)	Mario Ángel	543	Jujuy	1707-S-2011
(2)	Payo	990	Jujuy	1514-M-2010
(3)	Payo I	1,973	Jujuy	1516-M-2010
(4)	Payo 2	2,193	Jujuy	1515-M-2010
(5)	Chico I	835	Jujuy	1229-M-2009
(6)	Chico V	1,800	Jujuy	1312-M-2009
(7)	Chico VI	1,400	Jujuy	1313-M-2009
(8)	SilviaIrene	2,465	Jujuy	1706-S-2011
Burke Graphite Project (Queensland)					(Strike – ~70%)

Tenement No	Status	Grant Date	Grant Date	Expiry Date	Expiry Date	Area(blocks/Ha)	Area(blocks/Ha)		Area(km²)
Burke EPM 25443	Granted	4/9/2014			3/9/2019	5	sub-blocks		~16
Corella EPM 25696	Granted	2/4/2015			1/4/2020	11 sub-blocks			~36
Pilbara Tenement	(Western Australia)						(Strike – 100%)
Tenement No	Status		Grant Date		Expiry Date		Area(blocks/Ha)		Area(km²)
EL 45/4800	Granted		10/8/2017			9/8/2022	70 blocks		~225

22

Quarterly Report for period ended 30 June 2019

JORC MINERAL RESOURCES

The following JORC Code compliant (2004 and 2012) Mineral Resources estimates are as at the end of the quarter and currently:

Paulsens East Iron Ore Project (Australia)

(Strike – 100%)

The Pausens East Iron Ore Project has a JORC Code (2012 Edition) compliant Inferred Mineral Resource:

JORC	Fe%	Million
Category	Range	Tonnes	Fe%	SIO2%	AL2O3%	P%	S%	LOI%
Inferred	>58	9.1	63.4	5.6	3.2	0.08	0.01	1.95

Note: Paulsens East Mineral Resource estimate using a 58% Fe lower cut-off wireframe.

Refer also to Strike’s ASX Announcement dated 15 July 2019: Maiden JORC Resource of 9.1 Million Tonnes at 63.4% Fe – Paulsens East Iron Ore Project in the Pilbara.

Apurimac Iron Ore Project (Peru)

(Strike – 100%)

The Apurimac Project has a JORC Code (2012 Edition) compliant Mineral Resource of 269.4 Mt, consisting of:

• a 142.2 Mt Indicated Mineral Resource at 57.8% Fe; and

• a 127.2 Mt Inferred Mineral Resource at 56.7% Fe.

Category	Concession	Density t/m3	Mt	Fe%	**SiO2% **	**Al2O3% **	P%	S%
Indicated	Opaban 1	4	133.71	57.57	9.46	2.54	0.04	0.12
Indicated	Opaban 3	4	8.53	62.08	4.58	1.37	0.07	0.25
Inferred	Opaban 1	4	127.19	56.7	9.66	2.7	0.04	0.2
Total Indicated and Inferred			269.4	57.3	9.4	2.56	**0.04 **	0.16

The information in this JORC Resource table was prepared and first disclosed under the 2004 JORC Code (in Strike’s ASX announcement dated 11 February 2010: Peruvian Apurimac Iron Ore Project Resource Increased to 269 Million Tonnes ) and has subsequently been upgraded to comply with the 2012 JORC Code and disclosed in Strike’s ASX Announcement dated 19 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard.

Cusco Iron Ore Project (Peru)

(Strike – 100%)

The Cusco Project has a JORC Code (2004 Edition) compliant Mineral Resource of 104.4 Mt Inferred Mineral Resource at 32.62% Fe.

Category	Concession	Density t/m3	Mt	Fe%	**SiO2% **	**Al2O3% **	P%	S%
Inferred	Santo Tomas	4	104.4	32.62	0.53	3.19	0.035	0.53

The information in this JORC Resource table was prepared and first disclosed under the 2004 JORC Code (in Strike’s ASX announcement dated 17 June 2011: Cusco Project – Resource Estimate). It has not been updated since to comply with the 2012 JORC Code on the basis that the information has not materially changed since it was last reported.

Burke Graphite Project (Australia)

(Strike – ~70%)

The Burke Graphite Project has a JORC Code (2012 Edition) compliant Mineral Resources:

Category	Weathering State Mt TGC (%) Contained Graphite (Mt) Density (t/m)
Inferred	Oxide 0.5 14.0 0.1 2.5
	Fresh 5.8 16.2 0.9 2.4
Inferred	Total Oxide+ Fresh 6.3 16.0 1.0 2.4

Note: The Mineral Resource was estimated within constraining wireframe solids defined above a nominal 5% TGC cut-off. The Mineral Resource is reported from all blocks within these wireframe solids. Differences may occur due to rounding.

Refer also Grade Tonnage Data in Table 2 of CSA Global Pty Ltd’s Burke Graphite Project MRE Technical Summary dated 9 November 2017 (attached as Annexure A of Strike’s ASX Announcement dated 13 November 2017: Maiden Mineral Resource Estimate Confirms Burke Project as One of the World’s Highest Grade Natural Graphite Deposits).

23

Quarterly Report for period ended 30 June 2019

JORC CODE COMPETENT PERSON’S STATEMENTS

JORC Code (2012) Competent Person Statement - Paulsens East Mineral Resources

The information in this document that relates to Mineral Resources in relation to the Paulsens East Iron Ore Project (Pilbara, Western Australia) is extracted from the following ASX market announcement made by the Strike Resources Limited on:

• 15 July 2019: Maiden JORC Resource of 9.1 Million Tonnes at 63.4% Fe – Paulsens East Iron Ore Project in the Pilbara

The information in the original announcement that relates to Mineral Resources and other Exploration Results (as applicable) in relation to the Paulsens East Iron Ore Project (Pilbara, Western Australia)is based on, and fairly represents, information and supporting documentation prepared by Mr Philip Jones, who is a Member of the Australian Institute of Mining and Metallurgy (AusIMM) and the Australian Institute of Geoscientists (AIG). Mr Jones has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code ). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

JORC Code (2012) Competent Person Statement - Apurimac Project Mineral Resources

• The information in this document that relates to Mineral Resources in relation to the Apurimac Iron Ore Project (Peru) is extracted from the following ASX market announcement made by the Strike Resources Limited on: • 19 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard

The information in the original announcement that relates to Mineral Resources and other Exploration Results (as applicable) in relation to the Apurimac Iron Ore Project (Peru) is based on, and fairly represents, information and supporting documentation prepared by Mr Ken Hellsten, B.Sc. (Geology), who is a Fellow of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Hellsten was a principal consultant to Strike Resources Limited and was also formerly the Managing Director of Strike Resources Limited (between 24 March 2010 and 19 January 2013). Mr Hellsten has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

JORC Code (2004) Competent Person Statement – Cusco Project Mineral Resources

The information in this document that relates to Mineral Resources and other Exploration Results (as applicable) in relation to the Cusco Iron Ore Project (Peru) is based on, and fairly represents, information and supporting documentation prepared by Mr Ken Hellsten, B.Sc. (Geology), who is a Fellow of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Hellsten was a principal consultant to Strike Resources Limited and was also formerly the Managing Director of Strike Resources Limited (between 24 March 2010 and 19 January 2013). Mr Hellsten has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the JORC Code. Mr Hellsten approves and consents to the inclusion in this document of the matters based on this information in the form and context in which it appears.

24

Quarterly Report for period ended 30 June 2019

JORC Code (2012) Competent Person Statement – Solaroz Lithium Brine Project

The information in this document that relates to Exploration Targets in relation to the Solaroz Lithium Brine Project (Argentina) is extracted from the following ASX market announcement made by Strike Resources Limited on:

• 13 March 2019: Strike Secures Solaroz Lithium Brine Project in Argentina’s Lithium Triangle

The information in the original announcement that relates to Exploration Targets is based on, and fairly represents, information and supporting documentation prepared by Mr Peter Smith, BSc (Geophysics) (Sydney) AIG ASEG, who is a Member of The Australasian Institute of Geoscientists (AIG). Mr Smith is a consultant to Strike Resources Limited. Mr Smith has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

JORC Code (2012) Competent Person Statement - Burke Graphite Project Mineral Resources

The information in this document that relates to Mineral Resources in relation to the Burke Graphite Project (Queensland) is extracted from the following ASX market announcement made by the Strike Resources Limited on:

• 13 November 2017: Maiden Mineral Resource Estimate Confirms Burke Project as One of the World’s Highest Grade Natural Graphite Deposits

The information in the original announcement (including the CSA Global MRE Technical Summary in Annexure A) that relates to in-situ Mineral Resources for the Burke Graphite Project is based on information compiled by Mr Grant Louw under the direction and supervision of Dr Andrew Scogings, who are both fulltime employees of CSA Global Pty Ltd. Dr Scogings takes overall responsibility for this information. Dr Scogings is a Member of the Australian Institute of Geoscientists (AIG) and the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

The information in this announcement that relates to metallurgical test work is extracted from the following ASX market announcements made by the Strike Resources Limited on:

• 16 October 2017: Test-work confirms the potential suitability of Burke graphite for Lithium-ion battery usage and Graphene production;

• 13 November 2017: Maiden Mineral Resource Estimate Confirms Burke Project as One of the World’s Highest Grade Natural Graphite Deposits.

The information in the original announcements that relates to metallurgical test work is based on, and fairly represents, information and supporting documentation prepared by Mr Peter Adamini, BSc (Mineral Science and Chemistry), who is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Adamini is a full-time employee of Independent Metallurgical Operations Pty Ltd, who has been engaged by Strike Resources Limited to provide metallurgical consulting services. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

25

Quarterly Report for period ended 30 June 2019

The information in this announcement that relates to Exploration Results in relation to the ground ElectroMagnetic (EM) survey and other Exploration Results is extracted from the following ASX market announcements made by the Strike Resources Limited on:

• 21 April 2017: Jumbo Flake Graphite Confirmed at Burke Graphite Project, Queensland

• 13 June 2017: Extended Intersections of High-Grade Graphite Encountered at Burke Graphite Project

• 21 June 2017: Further High-Grade Intersection Encountered at Burke Graphite Project

• 16 October 2017: Test-work confirms the potential suitability of Burke graphite for Lithium-ion battery usage and Graphene production

• 13 November 2017: Maiden Mineral Resource Estimate Confirms Burke Project as One of the World’s Highest Grade Natural Graphite Deposits

• 26 June 2018: Burke Graphite Project – New Target Area Identified from Ground Electro-Magnetic Surveys

The information in the original announcements that relates to Exploration Results in relation to the ground Electro-Magnetic (EM) survey and other Exploration Results in relation to the ground Electro-Magnetic (EM) survey and other Exploration Results is based on, and fairly represents, information and supporting documentation prepared by Mr Peter Smith, BSc (Geophysics) ( Sydney ) AIG ASEG, who is a Member of The Australasian Institute of Geoscientists (AIG). Mr Smith is a consultant to Strike Resources Limited. Mr Smith has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

The Strike ASX market announcements referred to above may be viewed and downloaded from the Company’s website: www.strikeresources.com.au or the ASX website: www.asx.com.au under ASX code “SRK”.

FORWARD LOOKING STATEMENTS

This document contains “forward-looking statements” and “forward-looking information”, including statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, mineral reserves and resources, the financial position of Strike, industry growth and other trend projections. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “is expecting”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”, or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will” be taken, occur or be achieved. Such information is based on assumptions and judgements of management regarding future events and results. The purpose of forward-looking information is to provide the audience with information about management’s expectations and plans. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Strike and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, changes in market conditions, future prices of minerals/commodities, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns.

26

Strike Resources Limited and controlled entities June 2019 Quarter

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B Mining Exploration Entity and Oil and Gas Exploration Entity Quarterly Report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

STRIKE RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

ABN 94 088 488 724	Quarter Ended(currentquarter)	Quarter Ended(currentquarter)
	30 June 2019
Consolidated statement of cash flows	Current Quarter Jun-2019 $A'000	Year to Date 12 months $A'000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material)	- (353) - - (140) (123) 9 6 - - - -	- (532) - - (527) (436) 49 47 - - 114 -
1.9 Net cash from /(used in) operating activities	(601)	(1,285)

Strike�Resources�Limited��(A.B.N.�94�088�488�724) Level�2,�23�Ventnor�Avenue,�West�Perth,�Western�Australia�6005 Tel:�(08)�9214�9700�����Email:�info@strikeresources.com.au�����Fax:�(08)�9214�9701

Page�1

Strike Resources Limited and controlled entities June 2019 Quarter

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current Quarter Jun-2019 $A'000	Year to Date 12 months $A'000
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material)	- (197) (651) - - - 678 - - - - -	- (197) (2,645) - - - 3,107 - - - - -
2.6 Net cash from /(used in) investing activities	(170)	265
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) Transaction costs related to issues of shares, convertible notes or options	- - - - - - - - -	- - - - - - - - -
3.10 Net cash from /(used in) financing activities	-	-
4. 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities(item 1.9 above) 4.3 Net cash from / (used in) investing activities(item 2.6 above) 4.4 Net cash from / (used in) financing activities(item 3.10 above) 4.5 Effect of movement in exchange rates on cash held Net increase / (decrease) in cash and cash equivalents for the period	2,124 (601) (170) - (3)	2,368 (1,285) 265 - 2
4.6 Cash and cash equivalents at end ofperiod	1,350	1,350

Strike�Resources�Limited��(A.B.N.�94�088�488�724)

Level�2,�23�Ventnor�Avenue,�West�Perth,�Western�Australia�6005

Page�2

Tel:�(08)�9214�9700�����Email:�info@strikeresources.com.au�����Fax:�(08)�9214�9701

Strike Resources Limited and controlled entities June 2019 Quarter

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statementofcash flows)totherelateditemsin the accounts	Current Quarter $A' 000	Previous Quarter $A' 000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other(provide details)	1,325 25 - -	2,099 25 - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	1,350	2,124

6. Payments to directors of the entity and their associates	Current Quarter $A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	140
	-

• 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

• 6.1 includes directors' fees, salaries and superannuation for Executive and Non-Executive Directors

7. Payments to related entities of the entity and their associates

7. Payments to related entities of the entity and their associates Current Quarter $A' 000

7.1 Aggregate amount of payments to these parties included in item 1.2 - 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 -

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

Nil

Strike�Resources�Limited��(A.B.N.�94�088�488�724)

Level�2,�23�Ventnor�Avenue,�West�Perth,�Western�Australia�6005 Tel:�(08)�9214�9700�����Email:�info@strikeresources.com.au�����Fax:�(08)�9214�9701

Page�3

Strike Resources Limited and controlled entities June 2019 Quarter

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

8. Financing facilities available Add notes as necessary for an understanding of the position	Total facility amount at quarter end $A' 000	Amount drawn at quarter end $A' 000
8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)	- - -	- - -

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. Nil

9. Estimated cash outflows for next quarter	$A'000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other(provide detailsif material)	420 300 - 128 107 -
9.7 Total estimated cash outflows	955

10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10 10 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced Interests in mining tenements and petroleum tenements acquired or increased	Refer Quarterly Activities Report
	Refer Quarterly Activities Report

Strike�Resources�Limited��(A.B.N.�94�088�488�724) Level�2,�23�Ventnor�Avenue,�West�Perth,�Western�Australia�6005 Tel:�(08)�9214�9700�����Email:�info@strikeresources.com.au�����Fax:�(08)�9214�9701

Page�4

Strike Resources Limited and controlled entities June 2019 Quarter

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

1. This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2. This statement gives a true and fair view of the matters disclosed.

==> picture [124 x 84] intentionally omitted <==

==> picture [62 x 11] intentionally omitted <==

----- Start of picture text -----

�6 July 2019
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William Johnson Managing Director

See Chapter 19 of ASX Listing Rules for defined terms

Notes

1. The Company and its controlled entities currently holds the following listed share investments:

			30-Jun-19
**ASX code **	Company	No Shares	Last Bid Price	Market Value
S32	South32 Limited	130,000	$3.17	$412,100
BHP	BHP Billiton Limited	10,000	$41.14	$411,400
MIN	Mineral Resources Limited	20,000	$14.96	$299,200
RSG	Resolute Mining Limited	100,000	$1.33	$133,000
AUL	Austar Gold Limited	14,444,444	$0.003	$43,333
	Other listed shares	various	various	$41,653
				$1,340,686

The above investments are regarded as liquid assets to supplement the Company's cash reserves.

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

Strike�Resources�Limited��(A.B.N.�94�088�488�724)

Level�2,�23�Ventnor�Avenue,�West�Perth,�Western�Australia�6005

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Tel:�(08)�9214�9700�����Email:�info@strikeresources.com.au�����Fax:�(08)�9214�9701