Annual Report-Year 2 Explration Licence 9840

Abstract

In late September 2003, Striker Resources NL Striker) entered into a 'Letter of Intent' with Rio Tinto with respect to the Merlin Orbit Exploration Tenements, which surround the decommissioned Merlin Diamond Mine in the Batten region of the Northern Territory. The Merlin Orbit properties consist of six granted tenements, namely EL9058, 9768, 9840, 9893, 10189, 22101 and one exploration licence application 24192 totalling approximately 1,800km2. The tenements were held by Ashton Mining Limited ('Ashton') (a wholly owned subsidiary of the Rio Tinto Group 'Rio Tinto'). Striker acquired a 100% interest in the licences, including EL9840. Striker is now the operator of the licences and has transferred the tenure to wholly owned subsidiary company 'Bulgurri Diamonds'. Striker has agreed with Rio Tinto Ltd. to honour all existing commitments and arrangements that Rio Tinto Ltd. has entered into with respect to the exploration licences. Due to negotiations between Striker and Rio Tinto on the formalities of the 'Letter Of Intent', diamond exploration was limited to reassessing of geophysical datasets and target selection during the reporting period between 23rd July, 2003 and 22nd July, 2004.