Strike updates E. Kalimantan coal project

Berau Thermal Coal Project--(100%, East Kalimantan)

Strike?s focus is on the development of a strip mining operation producing 1.5 million tonnes per annum initially and increasing to 3 million tonnes per annum. The project feasibility study (encapsulating a number of resource, mine planning, infrastructure (mine, transportation and port) and marketing studies) is expected to be completed by May 2009 at which time a decision is expected to be made on the commencement of mine development.

Strike provides the following update on the Berau Project:

? Minarco-MineConsult has been engaged to provide a JORC Reserve and Resource upgrade based on recently completed 5,000 metres of diamond core drilling - this is expected to be completed within the next two weeks; and

? An agreement with a joint venture consortium developing a 300 megawatt Indian power station to exclusively conduct due diligence and evaluation of the Berau Coal Project in relation to entering into (up to a 50%) a joint venture and (up to a 100%) off-take agreement with respect to the Berau Coal Project has been extended from 15 April to 6 May 2009. (end of edited release)