WHY GRAPHITE?

Growing demand and increasing prices

• Technology and green applications (ex. 8 to 15 times more graphite in than Li within Li Ion batteries)
• Fuel cells, nuclear power
• 5% annual growth rate this decade

Supply concerns

• China accounts for 73% of global production in 2010
• The abundance of graphite in the world market inhibits increased recycling efforts

Critical Metal Status

• 2010 European Union report deemed graphite a critical metal due to high economic importance

Our Projects

Wagon Property

The Wagon Property consists of three separate claim blocks totaling approximately 3,000 hectares situated within the vicinity (approx. 15 km east) of Timcal's Lac des Iles Graphite Mine, 150 km northwest of Montreal. Lac des Iles is the largest of two Canadian graphite producers. It has been in production for over twenty years and produces graphite products of various sizes and purities.

The Wagon Property was originally explored by Graphicor Resources Inc. ("Graphicor") in 1989 based on the results of a helicopter-borne EM survey. Ground exploration followed in 1990.

Deep Bay East Project

The Deep Bay East Project covers approximately 5,500 hectares (13,590 acres) and is located 25 kilometres east of the community of Southend, Saskatchewan and less than 15 kilometres east of the Deep Bay West Graphite Mine.

Preliminary data from the VTEM survey has highlighted a strong conductive horizon associated with the known graphite mineralization at Deep Bay East, and extending well beyond the known limits of the historic mineralization. Based upon the preliminary survey data, the historic conductor was confirmed at approximately 2.5 km strike length. A second conductor, approximately 2 km in length, was identified. Based on its orientation and regional mapping, the new conductor likely represents a structural repetition (folding) of the mineralized Deep Bay East horizon, and thus represents a high-priority exploration target.

Deep Bay: Drilling and Trenching Highlights

The Deep Bay East Project was explored by Sherritt Gordon Mines Ltd. in the 1960s and later by Superior Graphite Company in the 1970s as they searched for secure sources of flake graphite. The property was discovered at the same time as the Deep Bay West Graphite Mine located about 15 kilometres to the west of Strike's Property.

The Deep Bay West Mine is currently being advanced towards production and is host to a historic non-NI 43-101 compliant resource of "1.8 million tonnes grading 10.32% C to a depth of 60 metres (Saskatchewan Mineral Deposit Index Report #0480). The geology and grades of the Deep Bay East Project appear to be similar to the Deep Bay West Mine. Recent testing of graphite from Deep Bay West achieved >95% carbon content for all flake sizes +32+50+80+100 and -100. Further treatment was able to achieve >99% purity (Noble Bay Mining Development Inc.).

Simon Lake Project

The Simon Lake Graphite Project covers 11,800 hectares, and is located approximately 300 km northeast of La Ronge, Saskatchewan and is intersected by Highway 905. The property consists of several showings of flake graphite mineralization in historic drill holes, which were discovered during the exploration of base metals during the 1960's and 1970's.

Strike has intersected graphitic gneisses on the first hole at Simon Lake Property. Thus far, Graphite mineralization has been encountered at the beginning of the hole, with the most abundant intercepts occurring from 10.2 to 23.9 metres (13.7m interval); followed by a second graphitic zone from 45.7 to 69.5 metres (23.8m interval). A third graphitic zone from 93.5 to 102.2 metres (8.7m interval) was also encountered. In the field, flake sizes of up to 4 millimetres have been noted*. Drilling of the first hole will continue until approximately 240m or until passing through a final potential graphitic zone.