announcement, page-7

jobl & path7

Pattos target $3.61

Tollhurst target $4.26 / $7.30

BBY report rates SRK highly.

PATTOS REPORT BELOW

SRK has acquired the right to earn a 68.15% interest in two world-class greenfi elds iron ore assets in Peru, which together
boast a historical resource estimate of 1.2Bt grading over 62% Fe. Based on its initial Inferred Resource of 172Mt grading
62.3% Fe, SRK remains the cheapest iron ore stock among its peers on EV/Resource metrics trading at only A$1/t (sector
average of A$10/t). While the Company’s Peruvian projects involve some additional risks to that of a typical DSO operation,
we believe the current discount is excessive. SRK’s share price has been weak following problems with local communities
resulting in an inactive exploration period during the second half of CY07, however with drilling back on track and development
studies progressing well we expect the Company’s share price to ratchet up as exploration milestones are achieved. While
our current estimates indicate that SRK’s advanced exploration assets offer excellent development potential, the release of
a PFS in March 2008 will add considerable confi dence to our assumptions. Our DCF derived and risk-weighted price target
is A$3.61/share and we retain a BUY.