cap raising 20pc discount also offered to holdes

Cap Raising $5mil

$3mil to institutional investors
$2mil to SRK holders

issue $1.30 per share (20% discount)

Record Date: 7 Nov 2006


MARKET ANNOUNCEMENT
Completion of Placement and Share Purchase Plan
The Company is pleased to announce the completion of a $3 million share placement to
institutional, professional and sophisticated investors.
The Company has determined to allow current shareholders the opportunity to also subscribe for
shares at the same price ($1.30 per share) through a $5 million Share Purchase Plan (SPP).
The funds raised will ensure the timely advancement of exploration, evaluation and development of
the Company’s mineral projects. In particular, the raising will secure the Company’s ability to
accelerate its investment commitments in relation to the Apurimac and Cuzco Iron-Ore Projects in
Peru (which is a total investment of US$6.5 million over 5 years; a minimum of US$1.4 million within
the first 12 months).
Under the SPP, shareholders registered as at 7 November 2006 (the Record Date) will be eligible to
apply for either $1,000, $3,000 or $5,000 of shares at an issue price of $1.30 per share.
The SPP issue price represents a 20% discount to the volume weighted average price (VWAP) of SRK
in the one month, and a 26% discount to SRK’s VWAP in the 5 day period, prior to the date of this
announcement.
If the total value of SPP subscriptions exceed $5 million, the Company reserves the right to scaleback
the applications or retain some or all of the over subscriptions.
Indicative SPP Timetable
Notice to SRKO option-holders of the SPP Wednesday, 25 October
Record Date under the SPP Tuesday, 7 November
Despatch of SPP documentation including Entitlement Forms Wednesday, 8 November
Opening Date of SPP Thursday, 9 November
Closing Date of SPP Thursday, 23 November
Allotment of SPP shares and despatch of holding statements Monday, 27 November
The Company will give notice of the SPP to its listed option holders to allow such holders to convert
their options into shares by the Record Date, to participate under the SPP.