Strike Resources updates on sale of assets

Strike Resources Ltd said today it is continuing negotiations over the sale of its Peruvian iron ore assets sale, in a deal that could be worth up to US$450 million.

The full statement is pasted below:

In our announcement of 14 March 2008 we stated that the Company was in negotiations with certain parties with a view to a possible disposal of, or investment in, the Company's iron ore assets in Peru.

The Company has become aware of recent media speculation in Peru that a transaction has been apparently concluded for the sale of Apurimac Ferrum S.A. for US$650 million.

As a result of such media speculation, the Company provides the following update:

The Company confirms that it, together with the other owners of the Cuzco and Apurimac projects, has been in negotiations with a group led by a major international mining company for the potential sale of up to 100% of those projects and the Company's other Peruvian iron ore assets for a total sale price of US$650 million, which valued the Company's interests at approximately US$450 million.

The Company confirms that no binding agreement has been reached by the parties.