ALARA RESOURCES LIMITED — Capital/Financing Update 2007

Nov 28, 2007

Alara Uranium Limited A.B.N. 27 122 892 719 Level 14, The Forrest Centre 221 St Georges Terrace Perth Western Australia 6000

Telephone | +61 8 9214 9787 Facsimile | +61 8 9322 1515 Web | www.alarauranium.com Email | info@alarauranium.com

==> picture [138 x 92] intentionally omitted <==

Tuesday, 27 November 2007

MARKET ANNOUNCEMENT

Release of Restricted Securities

The Company advises, pursuant to ASX Listing Rule 3.10A, that 736,250 fully paid ordinary shares will be released from ASX escrow on 6 December 2007.

The Company will be applying to the ASX for official quotation of these shares after they are released from escrow.

The Company currently has the following securities on issue (including the above restricted securities):

Issued Securities		Quoted	Unquoted /	Total
			Subject to
			**Escrow **
Fully paid ordinary shares		40,282,500	40,225,0001	80,507,500
$0.25 (30 June 2009) Listed Options (AUQO)		60,367,500		60,367,500
$0.55 (27 July 2012) Unlisted Directors’ Options		-	18,550,000	18,550,000
$0.55 (27 July 2012) Unlisted Employees’ Options		-	1,425,000	1,425,000
	Total	100,650,000	19,975,000	160,850,000

Further information:

Shanker Madan Victor Ho Managing Director Company Secretary T | (08) 9214 9787 T | (08) 9214 9787 E | smadan@alarauranium.com E | vho@alarauranium.com

• 1 Escrowed shares comprise:

  • (i) 736,250 shares held by unrelated founding shareholders escrowed for a period of 12 months from their issue date on 6 December 2006;

  • (ii) 4,488,750 shares held by related parties and promoters (founding shareholders) escrowed for 24 months from the date of official quotation of Alara’s shares on ASX;

  • (iii) 28,750,000 vendor shares issued to Strike Resources Limited pursuant to settlement of the Strike Uranium and Peru Sale Agreements, as defined in Alara’s IPO Prospectus, escrowed for 24 months from the date of official quotation of Alara’s shares on ASX; and

  • (iv) 6,250,000 vendor shares issued to Orion Equities Limited pursuant to settlement of the Hume Sale Agreement, as defined in Alara’s IPO Prospectus, escrowed for 24 months from the date of official quotation of Alara’s shares on ASX.

==> picture [53 x 53] intentionally omitted <==

ASX Code | AUQ