Strike Resources Limited provided the following updates in relation to its Apurimac Iron Ore Project in Peru (Apurimac Project) and its Paulsens East Iron Ore Mine (Paulsens Project) together with confirmation of the successful completion of a $5 million share capital raising. Strike Resources Limited continues to advance production of high-grade Direct Shipping Iron Ore (DSO) from its 100% owned Apurimac Project in Peru. Given the current strong demand and premium prices for high grade Lump Iron Ore and the corresponding opportunity for the Company to generate significant near-term cashflows from this operation, the Company has determined to accelerate the ramp up of its activities in Peru and increase its target for annualised sales from 125,000 tonnes to 250,000 tonnes. This will require further investment in site infrastructure, additional working capital to expand the mining operations across multiple sites and potentially the acquisition of a dedicated crushing plant to speed up processing and reduce operating costs. Funds from the recently completed capital raising of the Company will be applied to achieve these objectives. Over 30,000 tonnes of high-grade DSO (Apurimac Premium Lump) has now been mined and is being crushed at two local crushing plants located close to the Apurimac Project. Given the proposed increase in mining production referred to above, the Company has commenced crushing at a third, higher capacity crushing plant located closer to the Pisco Port and with this third plant now operating, the Company is targeting first shipment of approximately 30,000 - 35,000 tonnes of Apurimac Premium Lump (target grade of ~$65% Fe) in July 2021, with an estimated FOB cost of approximately US$70 - 80 per tonne. The Company is also pleased to report that it has secured a fleet of 50 trucks to commence trucking ore to the new crushing facility and for transporting crushed ore to the Port of Pisco ready for shipment. The Company is currently negotiating for a further fleet of 30 trucks to be contracted to expedite its trucking logistics, to reduce time for further shipments of Apurimac Premium Lump and to account for the proposed increase in Apurimac Premium Lump production. In conjunction with the securing of a 50 - 80 truck fleet, the Company has recently appointed a shipping agent in Peru and is in the process of finalising its first charter party shipping agreement in anticipation of its proposed first ore on ship. The securing of the above transportation logistics is an important step in the development of the Apurimac Project and achieving first ore on ship. Strike's Apurimac Iron Ore Project in Peru is recognised as one of the grade, large-scale magnetite projects in the world with the potential to support the establishment of a significant iron ore operation. A Pre-Feasibility Study completed in 20081 and updated in 20102 on the Apurimac Project indicated clear potential for development of a world class iron ore project, with competitive capital costs and very low operating costs. The Company is pleased to confirm that it has now engaged Ausenco, an industry leader in global engineering services, to commence works to review and update these previous studies. The principal focus of such works will be to examine the capital and operating costs associated with a 15 - 20 million tonne per annum production profile of a 68% Fe concentrate using a slurry pipeline for the transport of such ore to the coast for export to China. The Company believes that this work is an important step in advancing this globally significant project, in particular given the current strong demand for iron ore and the widely reported intent of Chinese steel mills to secure long term strategic sources of high-grade iron ore from countries other than Australia and Brazil. The Apurimac Project (Strike - 100%) has a JORC Code (2012 Edition) compliant Mineral Resource of 269.4 Mt, consisting of: a 142.2 Mt Indicated Mineral Resource at 57.8% Fe; and a 127.2 Mt Inferred Mineral Resource at 56.7% Fe. In addition to the current JORC Mineral Resource, there is significant exploration potential given the deposits are open at depth and along strike (with very promising drill results including 154m @ 62% Fe) with extensive undrilled gravity and magnetic anomalies. The appointment of Ausenco will now update these works with a focus on the development of a viable business proposition for the creation of a world class mine based upon the current Mineral Resource of the project to create a very high grade premium iron ore product for export to China. A particular focus will be on the operating costs of such project with a view to creating a sustainable mining proposition based on the potentially highly competitive operating costs the Project affords.