STRIKE RESOURCES : MARKET ANNOUNCEMENT, SECOND IRON ORE SHIPMENT FROM PERU

Published: 2021-09-10 10:31:52 ET SRK.AX

Strike Resources Limited (ASX: SRK) (Strike) is pleased to confirm that it has executed a sale contract (at full market price) with a South American steel mill (Buyer) for 15,000 tonnes of Apurimac Premium Lump iron ore (DSO) sourced from Strike's Apurimac Iron Ore Project.

The shipment is scheduled for early October 2021 and is to be used by the Buyer as an industrial trial for their steel manufacturing facility. The Buyer has a requirement for long term, regular supplies of ore which could be potentially met by Strike from its Apurimac Project, if the trial is successful. The Buyer's discharge port is located approximately 6 days voyage from the loading port in Peru, which affords considerable saving in shipping costs compared to China (approximately 32 days voyage).

Strike is also pleased to confirm that independent analysis taken during loading of its first shipment of ore from Peru confirmed the exceptionally high-grade nature and quality of the Apurimac Premium Lump iron ore, with average specifications across the 35,000 tonne shipment as follows.

William Johnson, Managing Director: 'The opportunity to sell our Apurimac Premium Lump DSO from Peru to a local South American steel mill offers significant benefits to Strike. In particular, the significantly shorter voyage time reduces shipping costs considerably and minimises pricing risk compared to sales to customers in China. Strike is also very pleased that the independent testing of its first 35,000 shipment of ore, which departed Peru earlier this month for customers in China, confirmed the exceptionally high-grade nature of its Apurimac Premium Lump DSO.'

ABOUT STRIKE RESOURCES LIMITED (ASX:SRK)

Strike Resources Limited is an ASX listed resource company which is developing the 1.5Mtpa Paulsens East Iron Ore Project in Western Australia. Strike also owns the high grade Apurimac Iron Ore Project in Peru where it has commenced mining of high-grade surface deposits and entered into an offtake agreement with an international ironore trading firm to export the 'Apurimac Premium Lump' DSO product of 65% Fe. Strike has a 43% shareholding in Lithium Energy Limited (ASX:LEL), which was recently spun-out of Strike under a $9m IPO. Lithium Energy is developing battery minerals related assets - the Solaroz Lithium Brine Project in Argentina and the Burke Graphite Project in Queensland.

FORWARD LOOKING STATEMENTS

This document contains 'forward-looking statements' and 'forward-looking information', including statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, mineral reserves and resources, the financial position of the Company, industry growth and other trend projections. Often, but not always, forward-looking information can be identified by the use of words such as 'plans', 'expects', 'is expected', 'is expecting', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', or 'believes', or variations (including negative variations) of such words and phrases, or state that certain actions, events or results 'may', 'could', 'would', 'might', or 'will' be taken, occur or be achieved. Such information is based on assumptions and judgements of management regarding future events and results. The purpose of forward looking information is to provide the audience with information about management's expectations and plans. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward looking information. Such factors include, among others, changes in market conditions, future prices of minerals/commodities, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns.

Forward-looking information and statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. The Company believes that the assumptions and expectations reflected in such forward-looking statements and information are reasonable. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. The Company does not undertake to update any forward-looking information or statements, except in accordance with applicable securities laws.

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