Strike Resources Limited announced the formation of a Port of Ashburton Consortium (PAC) via the execution of a binding MOU with West Australian iron ore company CZR Resources Ltd. (CZR) and CSL Australia Pty Ltd. (CSL) to develop a 5 Mtpa capacity iron ore export facility at the existing Port of Ashburton, located near Onslow in the Pilbara, Western Australia. The PAC has been formed with the objective of working with relevant authorities to obtain required approvals for the establishment of infrastructure at the Port of Ashburton to create an efficient low cost and environmentally sustainable bulk iron ore export facility (at the West Quay) for up to 5 million tonnes of iron ore per annum. The creation of the proposed bulk export facility will consist of landside facilities such as road train unloader, conveying, storage shed, transhipment vessel (TSV) loader and ancillary fixed point and mobile infrastructure to facilitate the export of iron ore at the existing Port of Ashburton.

The PAC notes that: the Port of Ashburton is a multi-user port operated by the Pilbara Ports Authority (PPA); PPA approval for the Port of Ashburton West Quay Facility is subject to the PAC obtaining all other required approvals; and access to the Port of Ashburton is subject to the PPA's published vessel movement protocols and as such, the PAC's access to the West Quay berth is subject to other cargo loading/unloading activities and operations in the Port of Ashburton. Strike, as an existing producer of iron ore from its Paulsens East Iron Ore Project, and CZR, as a future iron ore producer from the development of its Robe Mesa Iron Ore and Ashburton Magnetite Projects, propose to utilise the Port of Ashburton West Quay Facility for the export of iron ore from their existing and proposed iron mines respectively. Material Terms of MOU: By a binding MOU (dated 14 December 2022) between Paulsens East Iron Ore Pty Ltd. (the Paulsens East operating subsidiary of Strike), CZR and CSL: The parties will work together to secure necessary approvals for the construction and operation of the Port of Ashburton West Quay Facility.

The parties agree to share the costs and expenses of the approvals process in proportion to their participating interest in the PAC CSL will undertake a feasibility study on the landside transhipment and marine operations and will have a first right of refusal to provide transhipment services from the Port of Ashburton West Quay Facility. The participation interest and cost contribution of each party in the PAC and future ownership of the Port of Ashburton West Quay Facility is as follows: CZR - 50%, CSL - 25% and Strike - 25% (adjusted proportionately if a party does not wish to proceed with a definitive agreement). Each of CZR and SRK will have access to export capacity at the Port of Ashburton West Quay Facility in the following proportions: CZR - 66.67% and Strike - 33.33% (subject to a mechanism for allocating unused capacity, including to third-parties).