Berau Coal Project

East Kalimantan, Indonesia

Strike Resources Limited owns 100%

The Company's rights to the Berau Thermal Coal Project are held by an Indonesian subsidiary of the Company, PT Indo Batubara (PTIB) and give the Company exclusive rights to conduct general survey activities, explore for, exploit, mine and sell coal and methane gas and other minerals in the concession area.

Berau Coal – Project Location

Concession Location Map

Only 200 ha out of 5000 ha has been drilled

Previous Exploration Summary

• 200 ha high priority block selected for detailed exploration to facilitate rapid exploration to mining timeline
• 66 HQ diamond drill holes (full core) drilled for 4511 meters. 21 of which were geophysically logged down hole. Every hole intersected coal.
•All seams over >0.5m geochemically analysed
•200 ha block geologically mapped in detail

Drill hole locations within the 200 ha high priority block

Simplified Stratigraphy

The Berau coal deposit comprises a number of coal seams within a sequence of mudstones, siltstones and conglomerates correlated as being within the Latih Formation. The coal seams dip approximately 15-25 degrees to the north-east

Average Coal Quality

	CJORIfdnerre
ClT(illi)oaonnesmons	8
TMARTolMisAsReivedttuaorece=	17
CCfVARloiicValuAsReivedarece=	5,600
IMADBInheMisAirDriedBaistturenores=	14
AADBAshAirDriedBaiss=	5.6
VMADBVolaileMAirDriedBaistttaers=	40
CCFADBFixedbAirDriedBaisarons=	40
SSuTADBTollphuAirDriedBaistars=	0.64
CCVADBloificValuAirDriedBaisares=	5,800
CVDBCloificValuOvDriedareen=	6,800
CVDAFCloificValuDrAshFrareeey=	2007,
HGIHadGindbiliIndtyrgroveraex=	50

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves has been compiled by Mr Hem Shanker Madan who is a Member of The Australian Institute of Mining and Metallurgy. Mr Madan is the Managing Director of the Company. Mr Madan 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 "Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)." Mr Madan consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Current Exploration Summary

• Detailed geological mapping of the entire 5000 ha (currently in progress). New coal seams identified at numerous localities over the 5000 ha concession.
• 5000 m diamond drilling for 50 holes. 2 drill rigs. Commencing late October 08, anticipated completion in January 09.

Purpose of current drilling is twofold

Extensional Resource Drilling & Infill Drilling (1 drill rig).

This drilling will bring all of the known resource into the JORC Indicated category with a large proportion anticipated to be classified as JORC measured. The current 8 MT resource is open in 3 directions, therefore the likelihood of this round of drilling producing significant additional tonnes is highly likely.