development of paulsens east iron project

Hi All....I held this stock quite some time ago, but don't currently hold stock. I keep track of all activities in particular to IO in West Aust, from the mining tenement side of things.

I noticed that on the 1st December, Strike has applied for a mining lease (M47/1437) over the Paulsen's East IO project in the Wyloo region and a Miscellaneous Licences (L47/352) for a road to the highway and mine site development infrastructure.

Just reading from the latest reports/financials, this was their sediment on Paulsen's East:

"As stated in the Company’s December 2008 quarterly report, in light of the extremely tight credit and capital markets, the Company has determined not to spend any further monies on developing the Paulsens East Project. Strike is presently at an advanced stage of negotiations for a potential joint-venture partner to mine this ore body on a farm-out basis. Strike considers that a farm-out is an appropriate method of seeking to unlock value from the Paulsens East Project while preserving its cash for use on its priority projects."

It now appears these JV negotiations may have come to fruition or just about to.

I have attached the satelite image of the leases. I'm not sure if Strike has ever published regional magnetic images, so I have attached them as well.

Good luck to all that hold :) :)

PAULSEN'S EAST PROJECT


MAGNETICS


MISCELLANEOUS LICENCE L47/352