STRIKE RESOURCES LIMITED — Investor Presentation 2013

Jan 29, 2013

Strike Resources Limited Investor Presentation ASX CODE: SRK

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January 2013

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Disclaimer

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.

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Experienced Board

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MALCOLM RICHMOND (Independent Chairman)

Former senior Rio Tinto executive Led development of Yandicoogina iron ore business Professor of Business at University of WA until 2012

WILLIAM JOHNSON (Executive Director)

Strike Director since 2006, served as Executive Director from 2006 to 2010 and 2013 - Strong commercial background and extensive international experience

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MATTHEW HAMMOND (Non-Executive Director)

Group Managing Director of Mail.ru. Formerly Manager - Strategy for Metalloinvest-Gallagher

SAMANTHA TOUGH (Independent, Non-Executive Director)

Lawyer with extensive commercial background in resources and strong governance record

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Performance of Strike Resources Relative to Peers

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Strike 1 year share price performance – rebased to SRK (A$/sh)
outperformed 0.40
an index of
selected Mindax
Cazaly
junior iron ore 0.32
Ferrowest
explorers in
Legacy
2012
Golden West
0.24 FairStar
Venus Metals
Jupiter
Royal Resources
0.16
SAFM
Sherwin Iron
Iron Road
0.08
Ferrum Crescent
Strike
Index
0.00
Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13
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Source: Bloomberg (21/11/12) Notes: Rebased to Strike’s share price as at 22/11/11

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Apurimac Project Benchmarks Favourably

• Highest grade magnetite resource*

• Highest production potential*

• Significantly lower cash cost*

• Amongst the lowest capital intensity*

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• Applies where Strike’s Apurimac Project is benchmarked across a segment of industry peers as outlined in Appendix 1 to this presentation.

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Strong Foundations Established

2012 Objectives

Operational achievements

• Board restructure completed - additional independent director appointed

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BUSINESS

PARTNERS

#5 Establish Community Relations (CR) credentials and open constructive #3 Move to dialogue with Opaban majority and communities control position in AF

CORPORATE

#6 Consolidate Strike/AF position as major iron ore group in Apurimac and Cusco regions

#4 Manage exit #1 Strengthen from Berau with board and increase minimum independent overhang directors

#7 Position for strategic investor entry into projects

#2 Establish strong core team in Peru (AF)

• “Lean and keen” technical and commercial team established in Lima

• Successful “Shoot-out” process resulted in 100% ownership of AF for US$3.5M plus shares and modest deferred payments

• New Community Relations team established, positive relations established and access negotiations underway

• Berau settled: Strike to receive US$4.3M

• Cuervo investment delivering excellent drilling results at Bob1

• Rothschild appointed to assist with shoot-out and positioning

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Shoot-out Settlement – Strike now 100% AF owner

• 2.8 m Strike shares issued to D&C

Low initial cost

• US $3.5M D&C loans repaid

• Mutual release from legal claims

• Immediate move to 100%

• US$2 million on AF defining a 500 Mt resource at the Apurimac project, averaging >55% Fe or 275 Mt of contained iron at an average grade of >52.5% Fe

• Contingent • US$3 million on AF achieving environmental and community approvals for a mine with a design capacity of

• milestone 10Mtpa of iron ore product

• payments

• US$5 million on AF Board approval of an iron ore processing plant with a capacity of at least 10 Mtpa of iron ore product (“Construction Milestone”)

• 1.5% of net profits from iron ore

• 2% of base and precious metal sales (on a net smelter return basis)

• AF option to buy back the royalties for any one of the following payments:

  • US$13 million within 2 years after 20 December 2012 (“Execution”)

Potential o US$15 million from 2 to 3 years after Execution royalties

• US$20 million from 3 to 4 years after Execution

• US$30 million* after 4 years from Execution but before the earlier of the Construction Milestone or 20 December 2027 (subject to the continuance of any base/precious metal royalty then being paid, capped at $500k pa.)

• Indexed to US CPI after two years

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Strike’s 2013 program: plans and objectives

2013 Objectives

Actions and plans

• Establish AF GM/CEO and strengthen management team in Peru

• Maintain “lean and keen” management approach

PARTNERS

• Undertake focused and structured approach to securing community approvals for exploration at Opaban

BUSINESS

#4 Position for strategic investor entry into projects following valueadd drilling and exploration

• Continue exploration in Apurimac to progress additional known targets

#2 Achieve Community approvals at Opaban

• Continue dialogue with potential strategic partners

#3 Commence drilling to expand Apurimac iron ore to circa 500 Mt at 56 – 58%Fe*

CORPORATE

#1 Strengthen AF capability to manage all operational matters from Peru

#4 Consolidate Strike/AF position as major iron ore group in Apurimac and Cusco regions

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*The potential quantity and grade of the target iron ore is conceptual in nature. There has been insufficient exploration to define an additional mineral Resource in relation to that target iron ore. It is uncertain whether further exploration will result in the determination of an additional Mineral Resource in relation to that target iron ore.

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High Quality Apurimac and Cusco Iron Ore

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AF Apurimac
Opaban
Project
Cuervo
Pictures here.
1.132Mt @ 0.77% Cu
AF Cusco
Project117Mt @ 1.15% Cu
Pictures here.
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Apurimac Iron Ore

• 269 Mt @ 57.3% Fe at Opaban

• High-grade, coarse-grained, excellent metallurgy

• 500 Mt needed to support 15 – 20 Mtpa

Cusco Iron Ore

• AF concessions and Cuervo partnership

• AF: 104 Mt @ 33% Fe and a further 23 – 26 Mt iron ore potential at 32 – 34% Fe*, with <50% of target area tested

• Cuervo: 178 Mt @ 48% Fe + Bob 1 targets*

• Similar ore style to Apurimac but lower grade and mass recovery and higher sulphur

• 800 Mt needed to support 20 – 25 Mtpa

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• See the Appendix to this presentation for a breakdown of the total mineral resource into JORC categories per project and the JORC Code competent person statement.

• 9 **The potential quantity and grade of the target iron ore is conceptual in nature. There has been insufficient exploration to define an additional mineral Resource in relation to that target iron ore. It is uncertain whether further exploration will result in the determination of an additional Mineral Resource in relation to that target iron ore.

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Excellent Iron and Copper / Gold Potential

Apurimac Iron Ore

• 590 km[2] of concessions

• Sillaccassa: two magnetic targets with ironstone

• • Opaban North: 1 km magnetic target + ironstone

• Colcabamba: drilled Fe + magnetic anomalies

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Las Bambas (Xstrata),
1.13Bt @ 0.77%Cu
AF Cusco
Project
117Mt @ 1.15% Cu
Tintaya (Xstrata),
117Mt @ 1.15%Cu
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• Numerous magnetic and imagery targets

Cusco Iron Ore and Cu/Au

• Almost 400km[2] of AF and Cuervo concessions

• <50% target area tested at Cusco

• Cuervo Bob1, Parco and Huillque Norte targets

• World class copper / gold province

• 16 m @ 1% Cu from 28 m and current informal gold mining but no testing to date

• IP targets identified

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Cuervo – Bob 1 Drilling Results

2 km of strike tested of 3km target zone

• 100 – 200m thick magnetite intersected on all sections

• North-south orientation with moderate dips 45 – 60º to west

• Open to north + south and Parco repetition highly prospective

Drill Intercepts

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Hole 1: 133 m @ 49.6% Fe Hole 2: 182 m @ 39.6% Fe Hole 3: 156 m @ 40.9% Fe Hole 5: 144 m @ 38.3% Fe Hole 8: 185 m @ 47.5% Fe Hole 10: 117 m @ 57.4% Fe Hole 11: 87 m @ 33.8% Fe Hole 17: 112m @ 49.3% Fe

• Coarse-grained magnetite

• Elevated sulphur (2 – 3%)

• Similar style to Orcopura

Concession not held by Cuervo

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Pictures here.
117Mt @ 1.15% Cu
Pictures here.
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Community Approvals – Challenging but Improving

• Patience and trust building required, especially following previous AF “disappearance”

• Andean community mistrust of outsiders and government authorities – feel abandoned

• Southern Peru especially challenging due to Andahuaylas’ history as an activist centre

• Expectations raised with Mr Humala’s election but indications of increased disillusionment and radicalism

• Access agreements established – but not at Huinchos / Opaban as yet

However:

• Doors open in cycles – Huinchos mid 2011 and again now with community accepting mining

• “Pilot” programs successful along with innovative Camposol visits and expertise

• Delivery of previous commitments well received and open dialogue underway with all campesinos

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Pictures here.
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Opaban CR Approvals – Recent Achievements

• Huinchos celebrates new sports field and school computers; AF information office opened

• 2 of remaining 3 campesinos comprising Huinchos agree to AF information offices

• Huinchos leadership approaches AF regarding possible cooperation on small-scale mining

• Huinchos requests proposals from AF for 3-year access agreement and meeting with SRK/AF leadership

• Dialogue opened with Huancabamba regarding small-scale mining and access agreement

Moving Forward:

• Continue “Pilot” programs and innovative Camposol visits and expertise

• Gain access to Opaban I and III from second quarter then complete field work and documentation for environmental approvals, prior to drilling

• Target selected satellite concessions within 50km radius of Opaban

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Thank you

January 2013

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Appendix 1 – Benchmarking data

• Highest grade magnetite resource • Highest production potential • Significantly lower cash cost • Amongst the lowest capital intensity	Summary of ASX-listed iron ore peers (100% basis)
	Project EV Rsrce Grade Cont. Fe Product Target Opex Capex Intensity Company Project location % (US$m) (Mt) (%) (Mt) type (Mtpa) (US$/t) (US$m) (US$/t)
	Strike Resources Apurimac Peru 100% 3 269 57% 154 Mag 20.0 19 2,900 145 2 *
	Legacy Mt Bevan Aust. 60% 37 1,590 30% 480 Mag n.a n.a n.a n.a Mindax Mt Forrest Aust. 100% 20 1,711 32% 544 Mag n.a n.a n.a n.a Macarthur Moonshine Aust. 100% 5 1,316 30% 396 Mag 10.0 52 2,913 291 Sherw in Iron Roper River Aust. 100% 48 488 42% 204 Hem 10.0 39 1,200 120 Iron Road Central Eyre Aust. 100% 56 2,597 16% 416 Mag 12.4 59 1,744 141 Royal Resources Razorback Aust. 100% 17 1,815 21% 380 Mag 2.5 67 501 n.a Venus Metals Yalgoo Aust. 50% 14 698 29% 205 Mag 7.5 54 1,217 162 Jupiter Mt Ida Aust. 100% 138 1,845 29% 544 Mag 10.0 63 1,583 158 Ferrow est Yogi Aust. 33% 4 573 28% 157 Mag 4.5 n.a n.a n.a SAFM Ponto Verde Brazil 100% 51 262 42% 109 Hem 5.9 n.a n.a n.a Ferrum Crescent Moonlight Sth Afr 82% 12 308 27% 83 Mag 1.0 n.a n.a n.a Golden West Wiluna West Aust. 100% 21 130 60% 78 Hem 7.0 n.a n.a n.a Salmon River Mt Manning Aust. 100% 4 124 25% 31 Mag n.a n.a n.a n.a Ironclad Wilcherry Hill Aust. 80% 17 37 36% 13 Mag 10.0 94 n.a n.a Cazaly Parker Range Aust. 100% 19 35 56% 20 Hem 4.2 59 160 38 Xstrata Askaf Mauritania 88% n.a. 394 36% 141 Mag 6.0 35 540 90 Xstrata Guel el Aouji Mauritania 44% n.a. 926 36% 335 Mag n.a n.a n.a n.a Northern Iron Sydvaranger Norw ay 100% 308 435 31% 135 Mag 5.6 60 320 114 Haranga Selenge Mongolia 80% 34 33 24% 8 Mag n.a n.a n.a n.a 3 4 5 6 7

Source Bloomberg (24/1/2013), Company reports

Notes

• 1 Assumes AUD:USD = 1.0

• 2 Includes cash from Berau transaction of US$4.3m

• 3 Ferrowest currently farming-out 66.7% to Sichuan Taifeng Group

• 4 SAFM target Mtpa based on target 8Mtpa ROM at 44% Fe, producing assumed 60% Fe product

• 5 Golden West ownership of Wiluna West excludes 80% ownership of Joyner Find North which lies within the project

• 6 Ironclad opex for Stage 1 DSO only

• 7 Northern Iron capex and intensity calculated for 2.8Mtpa expansion only

• Source: Absence Lump/Fines and Concentrate Study (2010) - 20 Mtpa, slurry-pipeline case.

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Appendix 2 – JORC Code Information Resource Breakdown

AF Projects

Project	Classification	Tonnes (Mt)	Head Fe (%)
Apurimac	Inferred	127	56.7
	Indicated	142	58
Total	Indicated + Inferred	269	57.3%
Cusco	Inferred	104	32.6

The 68 Mt DSO component of the Apurimac resource is comprised of a 27 Mt inferred resource at 61.35% Fe and a 41 Mt indicated resource at 61.57% Fe and is included within the above figures.

Cerro Ccopane Project (Cuervo Resources, Inc)

Prospect	Classification	Tonnes (Mt)	Head Fe (%)	Cut‐off (% Fe)
Orcopura	Measured	19.7	48.26	20
	Indicated	35.9	45.91	20
	(Measured plus Indicated)	55.6	46.75	20
Orcopura	Inferred	51	43.7	20
or
Prospect	Classification	Tonnes (Mt)	Head Fe (%)	Cut‐off (% Fe)
Orcopura	Inferred*	46	45.8	30
Huillque and Aurora	Inferred	72	52.6	30
Total	Inferred	118	50.4	30

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Appendix 2 – JORC Code Information

Resource Breakdown (cont’d)

Cerro Ccopane Project (Cuervo Resources, Inc)

The resource estimate for Cuervo’s Orcopura prospect stands at 19.7 Mt at 48.3% Fe (measured resource), 35.9 Mt at 45.9% Fe (indicated resource) and 50.8 Mt at 43.7% (inferred resource). That estimate is a wire-framed computer model using a 20% Fe lower cut with grades determined using the inverse distance squared estimation method. The resource estimate for the Huillque and Aurora prospects uses a 30% Fe lower cut and the sectional polygonal resource estimation process. Accordingly, some care must be taken when quoting a global resource for the Cerro Ccopane project area.

JORC Code Competent Person Statement

The information in this document which relates to mineral resources and exploration results has been compiled by Mr Ken Hellsten, B.Sc. Hons (Geology), who is a consultant to Strike Resources Ltd and is a fellow of the Australasian Institute of Mining and Metallurgy. 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 “Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code).” Mr Hellsten consents to the inclusion in this document of the matters based on this information in the form and context in which it appears.

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