ALARA RESOURCES LIMITED — AGM Information 2013

Nov 21, 2013

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Alara Resources Limited A.B.N. 27 122 892 719

Level 3, 35 Havelock Street West Perth, Western Australia 6005 AUSTRALIA PO Box 1890 West Perth, Western Australia 6872

Telephone | +61 8 6323 5900 Facsimile | +61 8 6323 5999 Web | www.alararesources.com Email | info@alararesources.com

ASX/MEDIA RELEASE

Friday, 22 November 2013

Presentation at 2013 AGM

Perth: Alara Resources Limited (ASX: AUQ) ( Alara) is pleased to attach a copy of the presentation to be made at the Company’s 2013 Annual General Meeting scheduled to commence at 11:00 am (Perth time) on 22 November 2013.

– ENDS –

For further information, please contact:

Philip Hopkins T | +61 8 6323 5900 Managing Director E | md@alararesources.com

About Alara Resources

Alara Resources Limited (ASX: AUQ) is an Australian-based minerals exploration and mine development company with a diverse portfolio of projects in Saudi Arabia and Oman. Alara has recently completed a Definitive Feasibility Study (DFS) on its flagship Khnaiguiyah Zinc-Copper Project in Saudi Arabia and a Scoping Study (SS) on its Daris/Washihi Copper-Gold Projects in Oman. The Company is now transitioning towards establishing itself as an emerging base and precious metals mine development and production company.

For more information, please visit: www.alararesources.com.

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ASX Code | AUQ

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2013 Annual General MeetingManaging Director’s Managing Director’s Report to Shareholders Presentation Perth, Western Australia 22 November 2013 AGM 22 December 2013 Moving from Explorer to Producer Moving from Explorer to Producer Change & the Way Forward

• Presentation AgendaCompany Overview

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Company Changes

Company Status

Oman Update Saudi Arabia Focus Way Forward

Camel herder at the Saudi Project site

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Company Direction

“Alara is transitioning from being a mineral resources developer to a mine builder and operator.”

“Alara will achieve its goals through open, collaborative and respectful working relationships with its employees, partners, shareholders, and stakeholders.”

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Key Company Change Areas

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Board of Directors Management Team JV Relationship Focus Market Relationship

Site Security Chief, Driver & Country Manager

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Board Changes

Former Board of Directors

Ian Williams AO Non-Executive Chairman Current

H. Shanker Madan Managing Director Resigned

Douglas Stewart Non-Executive Director Retired

William Johnson Non-Executive Director Retired

Current Board of Directors

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Ian Williams AO Chairman

• 40+ years’ mining industry experience

• Hamersley Iron, Rio Tinto, Century Zinc and Pasminco

• Awarded Order of Australia for services to Indigenous communities

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Philip Hopkins Managing Director

• 30+ years’ mining experience

• South American Ferro Metals, BHP Billiton and St Barbara Mines

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John Hopkins

Director

• 30+ years’ legal and mining experience

• Adamus Resources, Universal Coal Plc , Wolf Minerals

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HRH Prince Abdullah bin Mosaad bin Abdulaziz Al Saud Director

• 25+ years’ business and sports management experience

• Highly regarded Saudi Arabian and International Businessman

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Management Changes

Former Management Team Current Management Team H. Shanker Madan Philip Hopkins Managing Director Managing Director Resigned Elvio Ruggiero Justin Richard Chief Financial Officer Country Manager – Saudi Arabia & Oman Resigned Ganesh Krishnamurthy Oman Lead Julian Tambyrajah Chief Financial Officer Resigned Justin Richard Lead Counsel Elle Macdonald Promoted Corporate Affairs Manager Victor Ho Company Secretary Victor Ho Current Company Secretary Jason Williams Technical Services Manager A.V. Sthapak Transitioned Oman Lead Leanne Cureton Technical Services Manager www.alararesources.com 6 © Alara Resources Limited

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JV Relationship, Focus, & Market Change

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JV Relationship

• Open and trustful

• • Business based

• Follow up & closure

Focus

• Saudi Zn Project

• Equity position

• Transition to production

• Oman optimisation

Market Relationship

• Realistic

• Open and frank

• Balanced

• Accessible

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Early results of Company Change

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As of close of business Wednesday 20 November

On this day…

• ASX “speeding ticket”

• Market down +2%

• Alara 10% up

In the Market

• Resources are flat/declining

• • Metal prices declining

• • Limited funds for juniors

Where is Alara?

• Robust Projects

• Market looking for these!

• Board and Management

• Right location

• • Right metal

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Way Forward Outline

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Oman Daris/Washihi Project

• Highly prospective Project

• Largest Oman Cu Resource

• New 1 Mtpa Scoping Study (+value)

• • Optimise for Alara and JV Partners

• Dual divestment strategy options

• Divest partially

• Divest fully

• Other options being evaluated

KMC Site Camp

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Saudi Khnaiguiyah Project

• Completed & robust DFS (+170m NPV)

• Require JV equity adjustment

• Ready to finance (high levels of interest)

• Ready to tender for EPC

• EPC firms have built in Saudi prior

• Mine operability being prepared

Middle East Project Advancement Focus!

Ri adh at ni ht y g

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Oman Overview

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Daris/Washihi Project Overview

• Remains a highly attractive Project

• Largest copper resource in Oman (see below)

• Considerable upside remains

• New 1Mtpa Scoping Study 90% complete

• Have begun divestment work

• Partial – retain 51% and progress as such

• Full – exit project with a possible minority stake

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• Other options available/being evaluated

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Saudi Arabian Project Focus

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Khnaiguiyah Project Focus & Highlights

• Springboard to a production base

• Robust DFS

• $US 170 m NPV & IRR 23%

• 2.8 year payback

• Ready to move to Project finance stage

• Focused on successful Project execution

Right Board & Management Team. Right Country. Right Metal. Right time.

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Why Saudi Arabia - Technical

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• 1970’s BRGM did full review – 5300 deposits

• Saudi Geological Survey

• DMMR (mines department) - +4,000 maps

• New mining code 2004 – ease of operation

• Resource Potential in the Arabian Shield I. 40 fully identified resources II. 15 ready to progress III. 9 mines only at this time

• Shipping ports – Europe & South East Asia

• Sealed roads & good land transport

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Why Saudi Arabia - Commercial

• 2012 Saudi mining budget – largest to date

• • Saudi government focus

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I. Petroleum II. Mining III. Financial services

• 20% Corporate tax (nil personal)

• Royalties – nil

• SIDF – 75% debt available (low rates)

• Ownership – 100% permitted

• Profits & Capital – 100% repatriation

• Nil import duties for mining (5% other)

• Tenure certainty – exploration to mining

• Fuel - $0.13/litre – trucking options

• Member G20

• Member WTO (2005)

• 1 in Middle East for business – #12 world[1]

1 World Bank Rating

Source: Belgian Export Credit Agency Saudi Arabia risk assessment

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Project Economical Highlights

	•	Project revenue:	A$2,074M
	•	Project costs :	A$1,201M
	•	EBITDA:	A$873M
	•	Cash flow (post Capex): A$467M
	•	Capex:	US$257M
	•	Project NPV:	A$170M
	•	IRR:	23%
	•	Weighted Avg cost of capital 9.1%
	•	Payback:	2.8 years
	•	Average production of 80ktpa Zn and 5.8ktpa Cu (years 1-7)
	•	Peak production 99kt Zn and 8.3kt Cu (year 4)
Photo – AMEK Al Masane Plant – Saudi Arabia	•	Cash costs (including TC/RC) of US$0.46/lb in the first 7
		years, US$0.50/lb LOM after copper credits
	•	Assumptions:	Zinc price US$2,315/t (US$1.05/lb)
			Copper price US$6,114/t (US$2.77/lb),
			Zinc TC/RCs US$180/t (A$:US$ = 0.90)
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Stand Out Project Drivers

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What Makes this Project Stand Out?

• The Project itself (see prior slides)

• • The Country (see prior slides)

• • The fiscal regime (see prior slides)

• But in addition the key here is …

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• Eliminated risk through balanced plan

• • Zinc supply falls off

• Zinc demand continues upward

• • Thus Zinc price outstrips all other metals

• • Project cash cost lower quartile

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Zn Supply & Demand Curve

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Zinc Production

Zinc supply is falling off Zinc demand is rising

Wood Mackenzie quote:

“Zinc will be the only metal to grow in unit value relative to its position in 2010 and will peak in 2016-2019”

November 2013

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Zn Forecast Price Curve

Zinc forecast to outperform other commodities in the long term

Commodity prices: historical and forecast – rebased to 100

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----- Start of picture text -----

300
Project goes into Zinc
250
production
•
Demand
continues to grow
200
•
Pb and Zn only
150 metal to increase
in value in next 5
years
100
•
Forecast to hit 20
50 year high as
2010 2011 2012 2013 2014 2015 2016 2017 Project comes on 2018
Cu Al Au Ag Fe Zn Pb Ni line
----- End of picture text -----

Source: B loomberg, Industry consultants, Broker Consensus

Notes

1 Copper, aluminium, iron ore, zinc, lead and nickel price forecasts are based on Wood Mackenzie, gold and silver price forecasts are based on broker consensus 2 Values up to 2013 are nominal values, values from 2013 onwards are in 2013 dollars

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Project Production Costs

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Zinc & Copper Production Costs

Zn bottom 50% of the cost curve Cu bottom 25% of the cost curve Cash costs remain to be optimised and expected to be in the bottom 30% of the cost curve upon production

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Project Opportunities

DFS Review Underway

• EPC (turn key) tender received

• Moving toward final bid process

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• DFS Risk & Opportunity underway

• Focused on:

• Project execution success (time & money)

• Scheduled commissioning and ramp up

• Capex reduction

• Risk elimination/reduction/management

• Capex possibilities:

Photo – AMEK Al Masane Plant – Saudi Arabia

• Crushing circuit – less ~$US 16m

• Concentrate shipping – less ~$US 9m

• Other opportunities

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Alara’s Way Forward - 2014

• Complete Management Team restructure

• Complete the updated Scoping Study on Daris/Washihi

• Finalise the considerations for Daris/Washihi assets

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• Finalise way forward for Khnaiguiyah Project (KMC) – JV Partner equity position

• Complete finance stage for KMC

• Complete DFS Risk & Opportunity Review for KMC

• Commence the selection of the Project Director and Owner’s Team for KMC

• Complete EPC contract for KMC construction

• Commence early construction works at the KMC site

• Commence full KMC production

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