Strike Resources Limited 2012 Annual General Meeting ASX CODE: SRK - - PowerPoint PPT Presentation

Strike Resources Limited

2012 Annual General Meeting

ASX CODE: SRK

November 2012

2

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.

3

Chairman: Malcolm Richmond Managing Director: Ken Hellsten Directors: William Johnson Matthew Hammond Samantha Tough Company Secretary: Stephen Gethin Chief Financial Officer: Julian Tambyrajah Notice of AGM: 22 October 2012 Proxies Received:: 63 - representing 43,609,120 shares

Meeting overview

4

Chairman’s Address Managing Director’s Presentation Questions for the Managing Director Financial and Directors’ Reports Questions for the Auditor Resolutions 1 – 5 Close

Agenda

Chairman’s Address

November 2012

Managing Director’s Presentation

November 2012

7

Performance of Strike Resources relative to peers

Source Bloomberg (21/11/12) Notes Rebased to Strike’s share price as at 22/11/11

0.0 0.1 0.2 0.3 0.4 0.5 Nov 11 Jan 12 Mar 12 May 12 Jul 12 Sep 12 Share price (A$) Mindax Cazaly Ferrowest Legacy Golden West FairStar Venus Metals Jupiter Royal Resources SAFM Sherwin Iron Iron Road Ferrum Crescent Strike Resources

8

Strong foundations established

Board restructure completed with appointment

• f additional independent director

 “Lean and keen” technical and commercial

team established in Lima

 Achieved strong working relations with D&C in

• Peru. Efforts continue in Indonesia

 Established strong CR team with clear goals

and mandate. Template community programs established and acknowledged

 Buy-out of minority partner and consolidation

triggered through “Shoot-out” process

Cuervo deal completed and delivering results Rothschild appointed.

CORPORATE #1 Strengthen board and increase independent directors #2 Establish strong

• perating team in

Peru (AF) PARTNERS #3 Strengthen partner relations in Peru #4 Re-establish positive relations with communities and authorities to enable timely approvals for exploration and beyond BUSINESS #5 Establish sound business approach at AF by moving to stronger equity position and commercial funding arrangements or exit #6 Consolidate Strike/AF position as major iron ore group in Apurimac and Cusco regions #7 Position for strategic investor entry into projects

2011/12 Objectives Outcomes

9

High quality Apurimac and Cusco Iron Ore

Pictures here. Pictures here.

1.132Mt @ 0.77% Cu 117Mt @ 1.15% Cu

* 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. **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.

• Apurimac Iron Ore
• 590 km2 of concessions
• 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
• Almost 400km2 of AF and Cuervo concessions
• AF: 104 Mt @ 33% Fe* and a 23 – 26 Mt potential

iron ore mineralisation 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

AF Cusco Project

Cuervo

AF Apurimac Project Opaban

10

Excellent iron and Copper / gold potential

Pictures here. Pictures here.

1.132Mt @ 0.77% Cu 117Mt @ 1.15% Cu

• Apurimac Iron Ore
• 590 km2 of concessions
• Sillaccassa: two magnetic targets with ironstone
• Opaban North: 1 km magnetic target +

ironstone

• Colcabamba: drilled Fe + magnetic anomalies
• Numerous magnetic and imagery targets
• Cusco Iron Ore and Cu/Au
• <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 gold

mining but no testing to date

• IP targets identified

Las Bambas (Xstrata), 1.13Bt @ 0.77%Cu Tintaya (Xstrata), 117Mt @ 1.15%Cu

Magnetic Target

Cuervo

Opaban Nth, Ferrum, Cristoforo Colcabamba Sillaccassa AF Cusco Project

11

Cuervo – Bob 1 drilling results

Pictures here. Pictures here.

117Mt @ 1.15% Cu

Concession not held by Cuervo

2 km of strike tested with results for central 800m

• 100 – 200 m thick magnetite intersected on all sections
• North-south orientation with moderate dips 45 – 60º to west
• Open to north and Parco repetition highly prospective

Drill Intercepts

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

• Coarse-grained magnetite
• Elevated sulphur (2 – 3%)
• Similar style to Orcopura

12

Community approvals – challenging, but improving

Pictures here.

• 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

13

SEPTEMBER 2012

JUNE 2012 JUNE 2011

2009

Dyer Coriat Family (D&C) Strike Resources

US$1.9m

SRK 44% D&C 44% IAC 12%

2009 Settlement Agreement SRK 56% D&C 44% After IAC Transaction SRK 50% D&C 50% D&C Top-up of AF

• r IAC

SRK 68% D&C 32% No D&C Top-up for AF SRK 50% D&C 50% D&C Top-up of US$30.8M to AF

* Strike funding of AF (>$30 M) recapitalised in Sept 2012 for additional 12% – 19% of AF

Apurimac Ferrum: status quo pathway

14

March 2012 May 2012 October 2012 August 2012 June 2012

SRK gives Shoot-

• ut advice

SRK prices bid

Outcomes

SRK 56% D&C 44%

SRK 50% D&C 50%

D&C pays SRK US $1.9m for 6% AF SRK 100% D&C 100%

D&C receives

• approx. US$3.2M

SRK receives

• approx. US$35.1M

* Strike to have 100% of AF or approx. $35.1M additional cash

Apurimac Ferrum “Shoot-out”

Process

15

Shoot-out – current status and way forward

Pictures here. Pictures here.

117Mt @ 1.15% Cu

D&C has defaulted

• Counter offer of US$27 M plus loan repayment not honoured
• Purchase of SRK AF shares for US$100 plus repayment of loans

not honoured

Strike Response

• Default provision triggered and partners’ shares purchased for

US$50 with loans (~US$3.2M) to be repaid within 3 years

• Shares not transferred hence dispute notice delivered

Next Steps

• 15 working day “good faith negotiations” period till 13

December

• Commercial settlement or arbitration process triggered

Legal Position

• Independent advice supports SRK position

16

Beyond the Shoot-out – the way forward

Pictures here. Pictures here.

117Mt @ 1.15% Cu

AF Projects are capital intensive and require significant patience

SRK can fund in short term, but strong funding partner needed

Resolve AF ownership – move to 100% ownership

Commercial settlement or arbitrated resolution

Progress CR and approvals at Opaban Recommence exploration including drilling Monitor opportunities to further consolidate Rothschild managed international partner search Close out Berau settlement

Formal Business

November 2012

18

Formal business

Pictures here. Pictures here.

117Mt @ 1.15% Cu

Consider Financial Statements and Directors’ and Auditor’s Reports Resolutions: 1 Elect Samantha Tough as a Director 2 Re-Elect William Johnson as a Director 3 Approve Employee Long-Term Incentive Plan 4 Ratify Issue of Options to CFO 5 Adopt Remuneration Report

19

Formal business

Pictures here. Pictures here.

117Mt @ 1.15% Cu

Resolution 1 – Elect Samantha Tough as a Director Proxy Summary For Against Abstain Open Totals All Proxies 42,654,904 55,051 261,435 637,730 43,609,120 Chairman’s Proxies 22,387,213 55,051 261,435 602,730 23,306,429

20

Formal business

Pictures here.

Resolution 2 – Re-elect William Johnson as a Director Proxy Summary For Against Abstain Open Totals All Proxies 41,999,510 918,880 50,000 640,730 43,609,120 Chairman’s Proxies 21,734,819 918,880 50,000 602,730 23,306,429

21

Formal business

Pictures here. Pictures here.

117Mt @ 1.15% Cu

Resolution 3 – Approve Employee Long-Term Incentive Scheme Proxy Summary For Against Abstain Open Totals All Proxies 26,007,927 231,021 41,640 17,328,532 43,609,120 Chairman’s Proxies 22,434,038 228,021 41,640 602,730 23,306,429

22

Formal business

Pictures here. Pictures here.

117Mt @ 1.15% Cu

Resolution 4 – Ratify Issue of Options to CFO Proxy Summary For Against Abstain Open Totals All Proxies 25,779,741 459,207 41,640 17,328,532 43,609,120 Chairman’s Proxies 22,205,852 456,207 41,640 602,730 23,306,429

23

Formal business

Pictures here. Pictures here.

117Mt @ 1.15% Cu

Resolution 5 – Adopt Remuneration Report Proxy Summary For Against Abstain Open Totals All Proxies 25,787,309 463,769 29,510 17,328,532 43,609,120 Chairman’s Proxies 22,213,420 460,769 29,510 602,730 23,306,429

Thank you

November 2012

25

Appendix – JORC Code Information

Resource Breakdown

AF Projects The 68Mt DSO component of the Apurimac resource is comprised of a 27 Mt inferred resource at 61.35% Fe and 41 Mt indicated resource at 61.57% Fe and is included within the above figures. Cerro Ccopane Project (Cuervo Resources, Inc)

Project Classification Tonnes (Mt) Head Fe (%) Apurimac Inferred 127.2 56.7 Indicated 142 58 Cusco Inferred 104.4 32.6 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

• r

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

26

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 Ken Hellsten, B.Sc. Hons (Geology), who is an employee of 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

• n this information in the form and context in which it appears.