Thursday, 4 October 2007

MARKET ANNOUNCEMENT

Roadshow Presentation

The Company is pleased to enclose a copy of a presentation made to fund managers and institutional investors in Hong Kong and Singapore this week.

For further information: Shanker Madan Managing Director T | (08) 9214 9700 E | [email protected]

The information in this market announcement that relates to exploration results has been compiled by Mr Hem Shanker Madan who is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Madan is the Managing Director of the Company. Mr Madan has in excess of 5 years experience which is relevant to the style of mineralisation under consideration and qualifies as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)." Mr Madan consents to the inclusion in this market announcement of the matters based on his information in the form and context in which it appears.

www.strikeresources.com.au

STRIKE RESOURCES LIMITED A.B.N. 94 088 488 724

Level 14, 221 St Georges Terrace, Perth WA 6000 ASX Code: SRK T | (08) 9214 9700 F | (08) 9322 1515 E | [email protected]

DEVELOPING A WORLDCLASS IRON ORE PROJECT

Executive Summary Executive Summary

z The global market for iron ore is forecast to remain strong.

z Strike is targeting up to 20 million tonnes per year production by 2011 potentially expanding to 40 million tonnes per year.

Based upon 20 Mt pa production this project has the potential to generate

(62%+Fe) iron ore resource in Peru.

Strike has secured rights to a potential

world class 1.2 billion tonne high grade

z Resource and project size is likely to transform Strike into a large producer by world standards.

Global peer comparison indicates significant company value upside.

significant revenues.

Strike is earning a 68% interest in two world class iron ore dep Strike is earning a 68% interest in two world class iron ore deposits located in Peru South Americalocated in Peru South America

Peru is a World Class Mineral BeltPeru is a World Class Mineral Belt

z Peru has 12% to 16 % the world's known resources of silver, gold, zinc, copper and lead
z Peru is among the top five producers in the world of silver, zinc, gold, copper and lead
z Xstrata, Newmont, BHP, Shougang and Teck Cominco amongst many others have a large stake in the mineral industry in Peru.
z Peru Offers:
- ¾A stable investment environment (currently BB+ rated)
- ¾Lock-in tax rates, funds repatriation rules etc.
- ¾Competitive labour costs.
- ¾Corporate tax rates and royalties comparable to Australia.

Historical reports estimate 1.2 billion tonnes of high grade Historical reports estimate 1.2 billion tonnes of high grade iron ore across two deposits iron ore across two deposits

zLarge untapped deposits of high grade iron ore are rare.
zResource grade is a critical factor in mine profitability.
z Resource estimates from surface mapping and sampling by Peruvian Ministry of Energy and Mines (1974) and Takahashi Trading (1961):
z Deposit 1 Deposit 2 Apurimac Cuzco ~730 Mt. ~500 – 650 Mt.62- 66% Fe. 64%+ Fe.

Current JORC Inferred Resource is 172Mt at 62.28% Fe.

How do Strike's deposits compare on a world scale? How do Strike's deposits compare on a world scale?

"It is noted however that the non-JORC compliant potential quantities referred to above are conceptual in nature due to insufficient exploration and it remains to be ascertained if exploration will confirm the non-JORC estimates by Peruvian Ministry of Energy and Mines (1974) and Takahashi Trading (1961)".

Strike's Resource is Significant by s Resource is Significant by World StandardsWorld Standards

Ditepos	Siez	G%dFraee	Company

Cj(Bil)araasraz	~4300Mt,	6%5	CVRD
Sih(SAfi)senrca	~200M5t,	8%5	Kbhuma
MiRi(Bil)nas-oraz	~850M2,000Mt –t	40%	MMX/Alngo
Ydii(APilb)ancoognausara-	~1200Mt,	58%	Rio
Sid(Gi)manouunea	~1200Mt	64%	Rio
Chit/CldBk(APilb)rsmasoureaus-ara	350Mt2,000Mt~-	59%/58%	Ft(FMG)orescue
Ai/C(P)purmacuzcoeru	1,300Mt~	%6264-	S(%)tik68+re
()MtWhlbkAPilbaeacus-ara	~800Mt	%64	BHPBilliton
()WtAlAPilbesngeass-arau	~600Mt	%61.5	/RiRbRiooeerv
()HDAPilbopeonss-arawu	~600Mt	62%	/RiHkoancoc
Bli(Gb)engaaon	00M~5t	60%+	Chinesegroup
Md(APilb)aranoous-ara	~20M5t	62%	RiTitono

HIGHLY EXPERIENCED BOARDHIGHLY EXPERIENCED BOARD

John Stephenson – Chairman

Exploration Director Rio Tinto Australasia. 35+ years managing exploration.

Shanker Madan (MD)

BHP, Rio Tinto, Hamersley Iron. 30+ years iron ore experience.

Farooq Khan: Executive Director

20+ years capital markets experience Executive Management of ASX Listed Companies Corporate Law Background

Malcolm Richmond

Managing Director Development Hamersley Iron. Managing Director R&D Rio Tinto. 30+ years bringing billion dollar iron ore projects on-line.

Agusto Baertl

Mining Engineer 30+ experience Previously CEO of Antamina Mining: Brought US$2.26 billion polymetallic mine into production one of the largest base metal producers in South America. Previously MD of Milpo: Large Peruvian Zinc producer.

William Johnson, Victor Ho.

STRIKES PRODUCTION GROWTHSTRIKES PRODUCTION GROWTH

Strike proposes a three phase project development plan

¾ Stage 1 2 Mt pa of High Grade Lump production by 2009
¾ Stage 2 20 Mt pa High Grade sinter/concentrate production by 2011
¾Stage 3

40 Mt pa of High Grade sinter/concentrate production by 2015

STAGE 1 STAGE 1 PRODUCTION PRODUCTIONPLAN (2009) PLAN (2009) 2 MT PA FROM SURFACE OUTCROPS AND SCREE AT CUZCO2 MT PA FROM SURFACE OUTCROPS AND SCREE AT CUZCO

¾ Estimated Capex US$15million
¾ Resource delineation has commenced
¾ Surface mining of highgrade hematite to 10m depth
¾ Road transport ~70km to existing railhead
¾ Transport by rail to Matarani Port

STAGE 2 STAGE 2PROJECT TIMETABLE PROJECT TIMETABLE

20 Mtpa Pre-Feasibility Program Completion March 2008 Completion March 2008

STAGE 2 STAGE 2 PRODUCTION (2011) PRODUCTION (2011) 20 MT PA FROM APURIMAC20 MT PA FROM APURIMAC

¾ Mined ore will be crushed, mixed with water and fed into a ~360km slurry pipeline
¾ On reaching the coast, the ore will be de-watered
¾ Product will be shipped to China/Asia in +150,000 tonne vessels.
¾ Strike has already identified 3 possible port sites for shipping with +17m draft

STAGE 3 STAGE 3 PRODUCTION (2015) PRODUCTION (2015) POTENTIAL EXPANSION TO 40 MT PA ADDING 20MT PA FROM CUZCOPOTENTIAL EXPANSION TO 40 MT PA ADDING 20MT PA FROM CUZCO

¾ Drilling to delineate resource to support a further 20Mtpa operation required
¾ Separate mine development at Cuzco.
¾ Second pipeline to join into the Apurimac pipeline corridor
¾ Utilise same port infrastructure as for Stage 2 Apurimac project

PRELIMINARY ESTIMATED CAPITAL EXPENDITUREPRELIMINARY ESTIMATED CAPITAL EXPENDITURE

	S1tage(2009)2Mtpa$USMil	S2tage(20102011)-20Mtpa$USMil	S3tage(2013201)5–40Mtpa$USMil
MidneanIfttnrasrcreuu	14	650	550
Pilipene	N/A	005	400
Ptor	1	305	105
Ttloa	15	1500,	1100,

Prefeasibilty Studies underway to provide greater CAPEX and OPEX certainty

PRELIMINARY ESTIMATED OPERATING COSTSPRELIMINARY ESTIMATED OPERATING COSTS

	2Mtpa$US/tonne	20Mtpa$US/tonne	40Mtpa$US/tonne
&MiiPinngrocessng	5	8	8
Ttranspor	30	3	4
Ptor	5	2	2
Ifttnrasrucure	1	1	1
Adi&O/hdmneas	1	1	1
Tltoa	42	15	16

Prefeasibilty Studies underway to provide greater CAPEX and OPEX certainty

Large bodies of water located nearby support preferred transport Large bodies of water located nearby support preferred transport by slurry pipeline slurry pipeline

Benefits of a Slurry Pipeline Benefits of a Slurry Pipeline

zRelatively low capital expenditure and operating cost.
zDownhill gradient is highly beneficial.
zWater and gas available.
zTargeted throughput: 20 Mt pa expanding to 40Mt pa.
z Proven technology – numerous existing slurry pipelines including:
- ¾Bailadila (India) – 7 Mt pa, ~270km
- ¾Samarco (Brazil) – 18 Mt pa, ~350km
- ¾MMX Minas-Rio (Brazil) – 26.5Mt pa, ~525km
zCapital costs of pipeline ~ US$ 500m.

PROPOSED PIPELINE ROUTESPROPOSED PIPELINE ROUTES

OPERATING CONDITIONSOPERATING CONDITIONS

CLIMATE

¾Apurimac 3500m ASL; Cuzco ~4000m ASL
¾Similar elevations to many large mines in Peru

LABOUR

¾Apurimac Project 15km from Andahuaylas with 50,000 population
¾Cuzco Project 80km from Cuzco: Peru's second largest city

POWER

¾Existing regional infrastructure
¾Gas pipeline within 80km from Apurimac
¾Potential for hydro-electric generation

COMMUNITY RELATIONS

¾Local community approvals required for land access and mining
¾Company has appointed strong and experienced Community Relations team
¾Some approvals in hand; others being negotiated
¾ Strike's projects will involve negotiations with many communities; Negotiations can be complex and time consuming

STRIKES IRON ORE ADVANTAGESTRIKES IRON ORE ADVANTAGE

¾Superior grades compared to lower grade ores from Australia
¾ For every low grade tonne Australia exports, more South American high grade tonnes are likely to be required to balance the steel mills feed
¾Expected operating costs to be in the lower quartile
¾ SRK ore principally Magnetite which will bring energy credits as ore is exothermic.
¾ Potentially large tonnage production allows purchasers to secure long term supply contracts against current major producers – BHP, Rio, CVRD
¾ Peru offers stable environment with far lower cost of production relative to Australia - Pilbara

EXPLORATION DRILLING 2008 EXPLORATION DRILLING 2008 – RESOURCE DEFINITION RESOURCE DEFINITION

¾ 30,000 m drilling at Apurimac
¾5,000m drilling at Cuzco
¾ Pre-feasibility studies (Due second quarter 2008)
¾ Budgeted expenditure 2007/2008 :US $7 million

172Mt @ 62.28% Fe JORC Inferred 172Mt @ 62.28% Fe JORC Inferred ResourceResource–and growing and growing-in Apurimac Apurimac

Opaban I and Opaban III : First 2 of 21 concessions drilled

¾ Detailed gravity and magnetic surveys followed by 31 diamond core holes and 45 RC holes have been drilled to date
¾ A resource target of 210 - 260 Mt at Opaban I is projected based on geophysical data.
¾ High grade intercepts including 154 metres at 62.8% Fe.
¾ 172Mt at 62.8% Fe JORC Inferred Resource at Opaban I and III.

19 further concessions remain to be drilled each with surface outcroppings

"It is noted however that the non-JORC compliant potential quantities referred to above is conceptual in nature as there has been insufficient exploration to define a JORC compliant Mineral Resource and it remains to be ascertained if exploration will result in the determination of a Mineral Resource".

RESOURCE ESTIMATE CUZCO: 500RESOURCE ESTIMATE CUZCO: 500-650MT

¾ Flat tabular radial bodies within a 4km diameter area around an intrusive core
¾ Work done to date
- ¾ Geophysical surveys
- ¾ Rock chip sampling of outcropping mineralisation
- ¾ 2,630m of drilling just completed. Results awaited

CAPITAL STRUCTURE

ASX Codes: SRK, SRKO

SOrdinary fully paid shares: 75 million Listed Options: 14.5 million Unlisted Options: 12.5 million Fully Diluted Issued Capital 102 million Market Capitalisation ( Fully Diluted): ~A$224 million (at $2.20/share)

Major shareholders: ANZ Nominees Ltd : 7.61%Database Systems Limited : 6.36%

Cash : A$18 million 52 week range A$1.26 – 2.72

DisclaimerDisclaimer

This material contains certain forecasts and forward-looking information, including regarding possible or assumed future performance, costs, production levels or rates, prices, reserves and resources or potential growth of Strike Resources, industry growth or other trend projections.

Such forecasts and information are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors, many of which are beyond the control of Strike Resources. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors.

Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.

Strike Resources Strike ResourcesA.B.N 94 088 488 724

Level 14, 221 St Georges Terrace Perth WA 6000

Telephone +61 8 9214 9700 Facsimile +61 8 9322 1515

Email: [email protected] Web: www.strikeresources.com.au