Copper Strike : June Quarterly Activities and Cash Flow Report

For personal use only

29 July 2022

QUARTERLY REPORT ON ACTIVITIES

April to June 2022

Overview

Copper Strike Limited ("Copper Strike" or the "Company") is pleased to provide an update on its activities for the quarter ending 30 June 2022.

Copper Strike is currently actively seeking project acquisition opportunities.

Corporate Activities

As at 30 June 2022 Copper Strike owns 6.50 million shares in Syrah Resources Limited (ASX:SYR) and some minor investments in two unlisted companies.

Over 12 months ago the ASX contacted the Company to advise that, in their opinion, Copper Strike's current operations are not sufficient to warrant the continued quotation of its securities. Since then, the Company has reviewed a large number of different projects across a broad range of market sectors. This is not a straightforward task with many different factors involved to ensure the right level of risk and opportunity that has the potential to provide significant future share price growth for all shareholders, your directors included.

In addition to the Materials space, the Board reviewed a number of opportunities in the Financial and Technology space during the first half of FY22. Some of these had significant future potential however were not of an appropriate size for Copper Strike to progress, while others had vendor expectations of value that we believe will not offer Copper Strike shareholders sufficient upside through any potential transaction.

The Company continues to review various opportunities which look attractive and due diligence is progressing.

The Company will keep shareholders informed of progress and will make an appropriate announcement when we are able.

Placement

On 5 April 2022, the Company announced a Placement raising $1.1 million (before costs) at an issue price of $0.09 (9 cents) per share, which comprised a single tranche placement to an investor whom the directors believe will add significant value in the project generation area.

Funds raised under the Placement will be used for general working capital purposes including costs associated with the potential acquisition of suitable project(s) including due diligence and any potential re-compliance costs.

Copper Strike Limited | ASX:CSE	Board of Directors:
ACN: 108 398 983 | ABN: 16 108 398 983	Mr Mark Hanlon - Non-Executive Chairman
Level 4, 100 Albert Road, South Melbourne, VIC, 3205	Mr Brendan Jesser - Non-Executive Director
T: [phone] | F: [phone]	Mr Anthony McIntosh - Non-Executive Director
www.copperstrike.com.au	Mr Stefan Ross - Company Secretary

For personal use only

Partial Sale of Investment in Syrah Resources Limited

On 9 June 2022, the Company announced that it has sold 2,642,866 shares in Syrah Resources Limited (Syrah), being a sale of approximately 28.91% of the Company's total shareholding in Syrah, resulting in proceeds of approximately $4.6million. The average sale price per share was approximately $1.75.

The Company considered it appropriate to reduce some of the Company's exposure in Syrah given current global market volatility, macro-economic conditions, recent interest rate policy changes in Australia, and the future outlook on global markets by various commentators.

At the same time, Copper Strike is continuing its current strategy in actively seeking project acquisition opportunities, and the Board notes that the proceeds from the partial sale of the Syrah investment is a form of non-dilutive funding that will assist the Company in having the required capital to progress any potential project acquisition opportunities, and also provide funding for general working capital purposes.

Listing Rule 12.1

As announced on 11 December 2020, the Company was advised by ASX, that in their opinion, Copper Strike's current operations are not sufficient to warrant the continued quotation of its securities.

The ASX originally stated that it will afford the Company until 9 June 2021 to demonstrate to ASX that Copper Strike is compliant with Listing Rule 12.1. ASX subsequently extended the deadline, as announced on 1 June 2021 and 8 July 2021. The Company applied for a further extension of time beyond 9 August 2021, in order to complete an appropriate acquisition. ASX advised the Company that they will respond to the Company's request for an extension in due course, however in the interim they will not suspend the Company.

Administration

As at 30 June 2022, Copper Strike had approximately $6,059,000 in cash and cash equivalents. Copper Strike's operating expenditure for the quarter amounted to $143,000.

Payments to related parties and their associates during the quarter was $49,000, as outlined in Section 6 of the accompanying Appendix 5B. These payments are related to Directors fees and superannuation paid during the June 2022 quarter.

The Company currently has no exploration interests.

-Ends-

This announcement was authorised for release by the Copper Strike Board of Directors.

For further information please contact:

Mark Hanlon Non-Executive Chairman [phone]

Copper Strike Limited | ASX:CSE	Board of Directors:
ACN: 108 398 983 | ABN: 16 108 398 983	Mr Mark Hanlon - Non-Executive Chairman
Level 4, 100 Albert Road, South Melbourne, VIC, 3205	Mr Brendan Jesser - Non-Executive Director
T: [phone] | F: [phone]	Mr Anthony McIntosh - Non-Executive Director
www.copperstrike.com.au	Mr Stefan Ross - Company Secretary

For personal use only

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity

COPPER STRIKE LIMITED
ABN	Quarter ended ("current quarter")
16 108 398 983	30 June 2022

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(12 months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)	exploration & evaluation	-	-
	(b)	development	-	-
	(c)	production	-	-
	(d)	staff costs	(49)	(171)
	(e)	administration and corporate costs	(94)	(564)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating	(143)	(735)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities	-	-
	(b)	tenements	-	-
	(c)	property, plant and equipment	-	-
	(d)	exploration & evaluation	-	-
	(e)	investments	-	-
	(f)	other non-current assets	-	-

ASX Listing Rules Appendix 5B (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(12 months)
				$A'000
2.2	Proceeds from the disposal of:
	(a)	entities	-	-
	(b)	tenements	-	-
	(c) property, plant and equipment	-	-
	(d)	investments	4,601	4,601
	(e)	other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	4,601	4,601
	activities

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

	(excluding convertible debt securities)	1,100	1,100
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equity	(56)	(56)
	securities or convertible debt securities
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing	1,044	1,044
	activities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1	Cash and cash equivalents at beginning of	557	1,149
	period
4.2	Net cash from / (used in) operating	(143)	(735)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	4,601	4,601
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	1,044	1,044
	(item 3.10 above)

ASX Listing Rules Appendix 5B (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

only

Consolidated statement of cash flows

1. Effect of movement in exchange rates on cash held
2. Cash and cash equivalents at end of period

Current quarter	Year to date
$A'000	(12 months)
	$A'000
-	-
6,059	6,059

For personal use

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A'000	$A'000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	6,059	557
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	6,059	557
	quarter (should equal item 4.6 above)

6.	Payments to related parties of the entity and their	Current quarter
	associates	$A'000
6.1	Aggregate amount of payments to related parties and their	49
	associates included in item 1
6.2	Aggregate amount of payments to related parties and their	-
	associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

ASX Listing Rules Appendix 5B (17/07/20)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.