The Paulsens East Project tenements in West Pilbara, Western Australia are located approximately 140 kilometres west of Tom Price and eight kilometres east-northeast of the Paulsens Gold mine in the northwest of Western Australia. In November 2009 Strike executed a farm-out agreement for this project with Process Minerals International Pty Ltd (“PMI”), a subsidiary of ASX-listed Mineral Resources Limited.

Under the farm-out agreement PMI has exclusive rights to explore for and mine iron ore from Paulsens East. Strike retains the rights to other minerals. If PMI mines iron ore at this project it will pay Strike a royalty of A$ 3.20 per tonne, subject to variations in line with movements in an iron ore benchmark price. PMI has advised that it intends to conduct a desktop pre-feasibility study to assess the development options for the project.