STRIKE RESOURCES

HIGH-QUALITY IRON ORE IN PERU

ASX CODE: SRK
March 2012
 FORWARD-LOOKING INFORMATION 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.

2
 STRIKE RESOURCES
Australian-listed Resources Company
• Large-scale iron ore projects in Apurimac and
Cusco regions of southern Perú
• Seeking to establish 15-20 Mtpa business
• Apurimac Project in pre-feasibility study
stage
• Current iron ore mineral resources totalling
374Mt*
• Potential access to resources of 179Mt* held
by Cuervo Resources
• Substantial exploration upside for iron and
copper/gold
• ~US$26M in cash plus ~US$36M in secured
loans

* 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.

3
 WHY INVEST IN IRON ORE?
Demand Predicted to Increase: 1770Mtpa (2013) to 3260Mtpa (2030)*
• Demand driven by urbanisation, industrial development and consumerism
• Ongoing strong demand growth driven from Asia, especially China and India
• Chinese and Indian economic growth forecast to average above 7%pa past 2030

(Mt)

• Annual per capita world steel demand to grow

from ~210kg to ~350kg by 2028
• Demand growth for magnetite concentrate for
pellet feed to outstrip other products
• Production increases forecast but slower than
planned and higher-cost projects at risk
• Customers keen to acquire resources and/or
Source: graph and statistics ‐ CRU off-take

* Excludes Chinese integrated pellet production and domestic concentrates used for sinter
4
 IRON ORE IN PERU
IOCG Skarn Placer
Size Large Moderate Moderate

Fe Grade Low - moderate Moderate - high Low

Fe Style Magnetite + haematite Magnetite Vanadium Ti Fe

Mining Moderate - high cost Low cost Low cost

Processing Moderate cost + complex Low cost Moderate cost + v complex

Logistics Good - excellent Moderate - hard Good - excellent

Marketing Good Very good Fair

5
PERU – A MAJOR RESOURCES PRECINCT

Peru – The Last Decade COMPANY WITHOUT A TAX STABILITY CONTRACT:

BURDEN ACCORDING TO A MODEL MINING COMPANY’S PROFITABILITY
• Free-trade agreement with the USA 1/ 2/
(% of profit before taxes and contributions)

• Competitive labor rates 60

• Competitive corporate tax rates and royalties 55

Current scheme (royalties)

• Stable investment environment 50 New scheme (royalties + IEM)

45
• Greater than 6% p.a. GDP growth
40
• #3 world-wide for resources investment
35

2011 Elections 30
10% 20% 30% 40% 50% 60% 70% 80% 90%
• President Humala forms government - global Operating margin (operating earnings/sales)
macro-economic settings unchanged 1/ This assumes that 70% of the profits will be shared as dividends.
2/ Tax calculation includes income tax, employee profit sharing, royalties, IEM and
• Strong commitment to responsible mining taxes on dividends
Source: Laws, APOYO Consultoria

• Social programs to reduce poverty funded by profits-

based mining tax – still competitive

6
 AUSTRALIAN SECURITIES EXCHANGE (ASX)
ASX: SRK
Capital structure:
• Ordinary, fully paid shares 142M
• Unlisted options 13.9M
• Cash Position: (Jan 2012) A$25M

Top Shareholders
• Gallagher Holdings Limited 18.2%
• Orion Equities Limited 11.7%
• Database Systems Limited 6.6%
• Ferrous Resources 4.5%
• Credit Agricole Cheuvreux 3.5%

7
STRONG EXPERIENCED BOARD
MALCOLM RICHMOND KEN HELLSTEN SAMANTHA TOUGH
(Independent Chairman) (Managing Director) (Independent NED)

Former senior RioTinto Over 30 years with BHP Served at senior executive
executive who led Billiton and smaller level in the resources and
development of resources groups, leadership other industries. Previous
Yandicoogina iron ore role in several major roles include General
Manager, North West Shelf,
business. Professor of resources projects from
at Woodside Energy.
Business at University exploration and development
of WA until 2012. to operations.

MATTHEW HAMMOND WILLIAM JOHNSON THOMAS KELLY

(Non-Executive Director) (Non-Executive Director) (CEO Apurimac Ferrum)

Group Managing Director of Held senior executive roles Mining engineer with over
Mail.ru. Formerly Manager - in a number of public 30 years experience in
Strategy for Metalloinvest- companies in Australia, and resources industry including
Gallagher. Asia and serves on the leading management roles
boards of several listed
companies.

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FOUNDATIONS ESTABLISHED FOR STRONG
SUSTAINABLE GROWTH
Outcomes
2011 Objectives  Complete - resignation of 3 “aligned”
directors and appointment of independent
BUSINESS  Appointed Tom Kelly (CEO) and strong
#5 Establish sound
business approach at AF technical and commercial team in Lima
PARTNERS by moving to stronger
#3 Normalise and equity position and  Achieved strong working relations with
then strengthen commercial funding D&C in Peru. Efforts continue in Indonesia
partner arrangements
relationships  Established strong CR team with clear
CORPORATE goals and mandate. Template community
#6 Consolidate Strike/AF
#1 Strengthen programs established and acknowledged
board and #4 Re-establish position as major iron
positive relations ore group in Apurimac
increase
with communities and Cusco regions  Buy-out of minority partner in conjunction
independent with D&C, consolidation discussions and
directors and authorities to
enable timely funding arrangements established
approvals for
#2 Establish exploration and  Cuervo deal completed and delivering
strong operating beyond results. Strike BD team established
team in Peru (AF)

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APURIMAC FERRUM: Strike’s Pathway to Control or “free carry”

June June Sept

2009
2011 2012 2012

D&C
25% SRK
No D&C Top-up 75%
for AF or IAC

2009 Settlement After IAC

Agreement Transaction
No D&C Top- D&C
IAC up for AF 32% SRK
12% D&C D&C SRK 68%
SRK SRK
44% 50% 50%
D&C 44% 56%
44%

US$1.9M
D&C Strike D&C Top-up
$27M to AF to
D&C SRK
fund studies 50% 50%

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APURIMAC IRON ORE PROJECT
Highlights
• JORC resource of 269Mt @ 57.3% Fe*
• High-grade with potential DSO and Pictures here.
coarse, friable magnetite
• At least 50% direct interest in concession
owner (AF) with control likely during
2012
• Positive initial Pre-feasibility Study (2008)
• Initial project optimisation undertaken
and opportunities identified
• Substantial potential to increase size of
resource Pictures here.
• Approvals now flowing with drilling
planned from June - July

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

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 APURIMAC – OPABAN IRON ORE DEPOSITS
Current Resources of 269Mt at 57.3% Fe* Bouguer Gravity
Opaban 1
Anomaly
Target of 300 – 350Mt at 57 – 58% Fe+
Current resources:
• Continuous broad zones
Pictures here.
• Dominantly high-grade, coarse-grained magnetite Opaban 3

• High-grade potential DSO of 67.9Mt at 61.5% Fe*

• Low strip and high conversion ratios indicated

Target Opaban mineralization is based on:

• Undrilled gravity and magnetic anomalies
• Both deposits open at depth
• High-grade intercepts, 62.8% Fe from 0-154m Pictures here.
• Hydrothermal and skarn mineralisation
3D Model of Opaban 1
* The Appendix breaks down the total mineral resource (including the DSO component) at Opaban into JORC categories
and contains the competent person statement.
+ The mineralisation target is inclusive of existing JORC resources. The potential quantity and grade of the target iron
ore mineralisation 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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OPABAN: EXCELLENT METALLURGICAL PROPERTIES
DTR Mass Recovery • Coarse particle liberation size (250 microns vs
30 – 40 microns)
80%
60 ‐70% • 60 - 70% mass recovery (vs 35 – 50%)
Pictures here.
60%
39%
Opaban • Excellent product grades with low impurities
25% 30% Project 1
40%
Project 2
Fe 64% to >68%
20% Project 3 Al2O3 0.30% to 1.00%
0% SiO2 1.50% to 4.50%
Opaban Project 1 Project 2 Project 3
P 0.01% to 0.03%
DTR Particle Size (P80 µm) S 0.01% to 0.05%*
* High S samples not included
300 250µm
250 Opaban • Low energy consumption hence lower
200 Project 1 operating costs
150
40µm 45µm 25µm Project 2
100
50 Project 3
0
Opaban Project 1 Project 2 Project 3

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2008 PRE-FEASBILITY DEMONSTRATED
ATTRACTIVE PROJECT ECONOMICS

Initial Pre-feasibility: Key Parameters and Results

• 27Mtpa mining operation at S/R of <2:1 for 20Mtpa product
• High-grade product >68% Fe with low impurities
• Slurry pipeline to coast for dewatering and export
• Average operating costs of <US$20 per tonne
• Competitive capex ~US$2.9 billion (<US$150/tpa)
• Infrastructure options and strong government support Pictures here.
Subsequent Options or Trade-off Studies
• Rail and traditional lump/fines products
• 10 and 15 Mtpa production rates
• Potential rope conveyer ore & product transport system
14
FURTHER UPSIDE POTENTIAL-TRANSPORTATION
OPTIONS
Rope Conveyor Study Completed
• Up to 2km between supports
• Capacity of >20Mtpa
• Up to 20km per conveyor section
• European design with high availabilities
(>98%)
• Facilitates ore, lump/fines and coarse
concentrate options
• Generate electricity on down-hill runs
• Ideal for ore transportation to central process
plant

Lump / Fines or Coarse Concentrate

• High grade (potential DSO) Opaban resource
of 68Mt at 61.5%Fe*
• Lump/fines flow sheet simpler and lower
capital and operating costs
• Indications of good quality product using coarse
dry magnetic separation
*The Appendix breaks down the total mineral resource (including the DSO component) at Opaban into JORC categories and contains the
15 competent person statement.
 APURUMIC PROJECT STATUS & FORWARD PLAN
Current Status
• >15Mtpa operation required to deliver robust
financial returns
• 15 – 20 year operational life necessary to justify
infrastructure
Opaban 1 resource
• Using 65% mass recovery, >500Mt required
Forward Plan
• Increasing iron ore base through exploration and
consolidation
• Community approvals flowing and exploration
gaining pace from March Qtr
• Preliminary exploration underway and completed in 4 Pictures here.
– 6 areas by June 2012
• Drilling at Cuervo and satellite concessions from
June quarter
• Based on community OK in March, Opaban drilling
likely from late 2012

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EXCELLENT IRON ORE POTENTIAL

Exploration Potential
• 590km2 held under concessions
OPABAN
in Apurimac, ~200km2 in Cusco IRON ORE
Pictures here. PROJECT
• Drilling targets at
Colcabamba, Sillaccassa,
Mapsa /Ferrum
Opaban (North, I and III) and
Cusco (Santo Tomas)

• >60% Fe in several regional

target areas, most untested by Sillaccassa
Colcabamba
drilling

• Numerous magnetic targets

for follow-up Pictures here.
• Testing priority determined by
target quality and approvals APURIMAC FERRUM S.A

CUSCO IRON
COMMUNITY AGREEMENT AND AREA
ORE PROJECT
OF EXPLORATION ACTIVITY

17
 CUSCO - SANTO TOMAS PROJECT
Resource Status
• Inferred resource: 104.3 Mt @ 32.6% Fe & 0.5% S
(June 2011)*
• Potential: 23 - 26Mt @ 30 - 35% Fe (June 2011)+
• Lower mass recovery than Opaban and floatation
circuit and/or fine grinding will be required Pictures here.
• Good potential to discover additional iron ore:
o Conservative model
o 30 – 40% of target area drilled
• Overall Fe grade expected to improve with better
definition
• Significant intersections of anomalous copper values in
historical drill samples including 16m @ 1% Cu 16m @ 1% Cu (28m)

Pictures here.

*See the Appendix to this presentation for a breakdown of the total mineral resource at this project into JORC categories and the JORC Code competent person statement.
+The potential quantity and grade of the target iron ore mineralisation is conceptual in nature. There has been insufficient exploration to define an additional mineral Resource in
18 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
CUERVO AND COPPER/GOLD POTENTIAL
• Options on Additional Resources
• Option to acquire 49% of Cuervo*

CUERVO • Stage 1
• C$5.25M for 32.5% (undiluted)
Las Bambas (Xstrata),
1.13Bt @ 0.77%Cu Pictures here. • Min $4.15M direct project costs
1.132Mt @ 0.77% Cu • Security over project concessions
• 2 directors of 7, “top up” capacity
• Strong covenants and pledges
• Stage 2 at SRK option
AF CUSCO
IRON ORE • C$9.75 for further 16.7% (to 49.2%)
PROJECT Tintaya (Xstrata),
117Mt @ 1.15%Cu
117Mt @ 1.15% Cu
• Overheads capped
• 3 directors of 7

Pictures here. • World-class copper / gold province

• Similar associations to iron deposits
• Numerous targets from iron
exploration

* On an undiluted basis, or approximately 46% on a fully diluted basis.

19
CUERVO TRANSACTION – AN OPTION ON
ADDITIONAL Fe RESOURCES
Orcopura: Resources of 106.4Mt @ 45.3%Fe*
• Open along strike and at depth
• Strong magnetic and gravity association Pictures here.
Huillque and Aurora: 72 Mt at 52.6% Fe*
• Open along strike and at depth
Bob 1
• Up to 10km strike potential
• Strong magnetic and gravity highs
• Extensive massive magnetite outcrops 117Mt @ 1.15% Cu
• Approvals in place and access in progress
• Drilling from April with resource in Sept Quarter Pictures here.
Huillque Norte
• 5 km strong gravity high
• Potential for iron ore and Cu/Au

*See the Appendix to this presentation for a breakdown of the total mineral resource at this project into
JORC categories and the JORC Code competent person statement. Concession not held by Cuervo
20
BUILDING STRONG COMMUNITY RELATIONS IN PERU
Community Approvals Required for all Mining Programs
• Successful resource companies implement pro-active and
sustainable programs to establish long-term relationships
based on mutual respect
• Community support fostered through both short- and long-term
programs jointly developed and implemented by AF and the
communities
• Strong, experienced CR team in place
• Excellent relations established with regional and federal authorities
– now delivering results
• Patient, respectful approach being rewarded with positive
dialogue/agreement with most communities in Apurimac (3 in 2010,
now >12)
• Protests in late 2011 caused hiatus in approvals
• Normalized relations and attitudes from early 2012

21
 COMMUNITY APPROVALS – POSITIVE & IMPROVING
 Colcabamba “pilot” very successful and approval granted for further 12 months’ exploration
 Established “AF Information Offices” in 2 main communities – Huinchos and Huinquiri
 President Humala visit and positive mining industry messages to Andahuaylas and Apurimac region
 Formal dialogue underway with “General Assembly” planned for coming weeks at key communities
 Some communities pro-actively approaching AF
 Requests from regional authorities to work with AF on regional information processes for communities
 Community approvals flowing and expected to accelerate over 2012
 Environmental approvals in line with programs

Pictures here.

22
 TIMELINE FOR DETAILED PRE-FEASIBILITY STUDY
(After community approvals)
6 MONTHS 2 MONTHS 5 MONTHS 5 MONTHS
Opaban
Enviro Studies + EIS Approval Opaban I & Resources
Resource Estimate and
Workshops (EIS) III Drilling Mining Studies
Extension

2 MONTHS:
Prepare &
Satellite Environ 2 MONTHS 4 MONTHS 2 MONTHS 4 MONTHS 5 MONTHS
Approval Present for
Concession Environ Approval Exploration Environ Approval Exploration Resource
Drilling Board
Exploration & Drilling Estimate
Approval to
Resources
BFS

Sample 3 MONTHS
3 MONTHS: 6 MONTHS
Preparation & Sample
Sample Prep
Prep Metallurgical 1 Month
Metallurgical Testwork
Testwork

Option/ 6 MONTHS 3 MONTHS 4 MONTHS

Trade-off Option/Trade‐ Tender & Complete
Studies off Studies Award PFS Detailed PFS

Estimated duration: 20 – 24 months

23
 IRON ORE PROJECT SUMMARY
374 Mt 50.4% Fe JORC resources* + Cuervo (179Mt @ 48.2%Fe)

Targeting 15 – 20Mtpa business over >15 years

• Expect further exploration will substantially increase iron ore tonnage

• Consolidation steps commenced - ≥50% AF and 32.5% Cuervo

• Further consolidation planned within AF and regionally

• Timetable driven by community approvals with 20 – 24 months to

deliver detailed PFS after approvals received

• Positive initiatives by President Humala in Apurimac and approvals

now flowing in line with exploration plan

• Exploration to accelerate during 2012 including drilling at Opaban

* 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.
24
 BERAU THERMAL COAL PROJECT
Project
• Thermal coal project capable of
delivering very good returns based
on 2Mtpa operation Pictures here.
Partner Status
• Dialogue and negotiations over last
2 years on restructure of Co-
operation Agreement
• Numerous (generous) proposals
offered to partner – all rejected
• Dialogue recommenced in 2012
• Door remains open for constructive, Pictures here.
good-faith negotiations but dispute
resolution and other legal options
being explored

25
 HIGHLIGHTS – SRK VALUE & GROWTH
 Board and management restructured
 Focused: Apurimac & Cusco Iron Ore Projects in Peru
 Consolidation strategy to secure >500Mt resources underway:
• Moved to at least 50% of Apurimac Ferrum (AF)
• Recapitalisation of AF in September 2012
• Option to acquire 49% of Cuervo Resources*

 Strong Peru-based team established and delivering results

 Approvals flowing and exploration programs accelerating

 Cuervo and AF drilling from April

 Short- to medium-term value through business development

 Strong cash position with A$25 million in cash (Dec 2011), US$31 million in secured loans to AF and
C$5.25 million secured loan to Cuervo

26 * On an undiluted basis, or approximately 46% on a fully diluted basis.

 STRIKE RESOURCES Limited
THANK YOU
ASX: SRK
www.strikeresources.com.au

27
 APPENDIX – JORC CODE INFORMATION
Resource Breakdown – AF Projects

Project Classification Tonnes (Mt) Head Fe (%)

Inferred 127.2 56.7
Apurimac
Indicated 142 58
Cusco Inferred 104.4 32.6
The 68Mt DSO component of the Apurimac resource is comprised of a 27Mt inferred resource at 61.35% Fe and 41 Mt indicated resource at 61.57% Fe and is included
within the above figures.
Resource Breakdown Cerro Ccopane Project (Cuervo Resources, Inc)

Cut‐off
Prospect Classification Tonnes (Mt) Head Fe (%)
(% Fe)
Measured 19.7 48.26 20
Orcopura
Indicated 35.9 45.91 20
Orcopura Inferred 51 43.7 20

Total inferred resources across all 3 prospects, using a 30% lower cut for Orcopura*
Cut‐off
Prospect Classification Tonnes (Mt) Head Fe (%)
(% Fe)
Orcopura Inferred* 46 45.8 30
Huillque and Aurora Inferred 72 52.6 30
Total Inferred 118 50.4 30

*The same lower cut used in the later Huillque and Aurora estimates.

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 APPENDIX – 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 Ian Cullen, B.Sc. (Geology), who is an employee of
Strike Resources Ltd and is a member of the Australasian Institute of Mining and Metallurgy. Mr Cullen 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 Cullen 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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