STZ: JUNE 2012 QUARTERLY ACTIVITIES REPORT

July 31, Strzelecki Metals Limited (ASX: STZ) --

HIGHLIGHTS

Ø Strzelecki Metals Limited ("Strzelecki" or "Company") has entered into a Heads of Agreement to acquire 100% of Wolf Petroleum Limited ("Wolf Petroleum"). This is a 100% scrip transaction.

Ø Wolf Petroleum shareholders to be offered twenty five (25) Strzelecki Shares for every one (1) Wolf Petroleum Share.

Ø Proposal to re name Strzelecki to Wolf Petroleum Limited.

Ø Wolf Petroleum is an unlisted highly successful Mongolian focussed oil and gas explorer.

Ø Wolf Petroleum is one of the largest and most active petroleum explorers in Mongolia and his currently running successful work programmes across three blocks.

Ø Mongolia is an emerging petroleum province with early exploration success and production being delivered proximal to Wolf Petroleum's Blocks.

Ø Mongolia is "open for business" and actively encourages foreign investment in its resources sector. The Wolf Petroleum Board including; Matthew Wood, George Tumur and Tim Flavel have had considerable success operating in Mongolia.

Ø Exploration interests in both southern Poland and Western Australia were enhanced through the activities of the joint venture partners.

WOLF PETROLEUM LIMITED

The Company has entered into a Heads of Agreement with Wolf Petroleum pursuant to which it will acquire all of the issued capital in Wolf Petroleum through an offer to Wolf Petroleum shareholders.



The offer will be an all scrip transaction with Wolf Petroleum shareholders to be offered 25 Strzelecki Shares for every Wolf Petroleum Share.

It is proposed that Strzelecki be renamed Wolf Petroleum Limited. Wolf Petroleum is an unlisted Mongolian focussed oil and gas explorer and is currently conducting successful work programmes across three blocks. Mongolia is an emerging petroleum province with early exploration success and production being delivered proximal to Wolf Petroleum's Blocks. Wolf Petroleum currently holds joint survey exploration block contracts at Jinst and Baruun Urt and has been recently been awarded a third block at Sukhbaatar with a product sharing contract (PSC) to be awarded.

Ø Aggressive onshore, low cost exploration with elephant upside.

Ø Giant exploration package assembled across three blocks, with additional blocks being assessed.

Ø Shallow targets depths at between 500 metres and 3,000 metres.

Ø Strong and growing market domestically in Mongolia and in China.

Ø Blocks are proximal to multi-billion barrel oil fields located within Mongolia and within China to the south.

Ø Near term development potential, subject to successful exploration.

Ø Experienced Board of Directors. The Board of Directors and senior management team have an enviable track record operating in Mongolia.

Ø Mongolia is open for business and is actively encouraging investment in its resources sector.

Completion of the acquisition will be subject to conditions including ASX and shareholder approval, completion of due diligence and Strzelecki becoming entitled to acquire 100% of Wolf Petroleum as a result of Wolf Petroleum shareholders accepting the offers to be made to them by Strzelecki. Strzelecki continues to undertake due diligence on the acquisition. Due diligence is expected to be completed during August 2012.



Link to report

Link to cashflow report

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