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ALARA RESOURCES LIMITED Capital/Financing Update 2007

Aug 27, 2007

64461_rns_2007-08-27_09ce768b-b0bd-4b7c-8782-b70ecd49a3f5.pdf

Capital/Financing Update

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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 | [email protected]

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Tuesday, 28 August 2007

MARKET ANNOUNCEMENT

Update on Loyalty Options Offer

As previously announced and disclosed in the Company’s IPO Prospectus, the Company propose to undertake a 3 for 4 non-renounceable rights issue of options at an issue price of one cent per option and an exercise price of $0.25 with such options expiring on 30 June 2009 ( Options Offer ). The Company will apply for these options to be quoted on ASX.

An indicative timetable is as follows:

EVENT DATE
Prospectus lodged with ASIC and ASX 3 September 2007
Lodgment of Appendix 3B Application for Quotation with ASX 3 September 2007
Notice sent to shareholders containing information required by Appendix 3B 4 September 2007
Alara Uranium (AUQ) shares commence trading ex entitlement 5 September 2007
Record Date for determining entitlements 12 September 2007
Despatch Prospectus and lodge announcement of completion of despatch on ASX 14 September 2007
Closing Date of Options Offer 28 September 2007
Deferred settlement trading of Options (ASX Code: AUQO) commences 2 October 2007
Date of allotment and issue of Options 3 October 2007
Option Holder Statements dispatched 5 October 2007
Deferred settlement trading of Options (AUQO) ends 5 October 2007

NOTES: (a) 7 September and 1 October 2007 are non-settlement days on ASX;

(b) Certain items are indicative dates only, which may change. The Company reserves the right to vary dates by either shortening or extending such dates, subject to the Corporations Act and ASX Listing Rules. Certain dates are also subject to the ASX Listing Rules; to the extent that any of the above dates are inconsistent with the Listing Rules, the dates prescribed under the Listing Rules shall be applicable

A prospectus for Options Offer will be issued in accordance with the above timetable. Shareholders registered at the relevant options record date and who wish to subscribe for options will need to complete the application form that will accompany and form part of the prospectus at that time.

Further information: Shanker Madan Managing Director T | (08) 9214 9787 E | [email protected]

Victor Ho Company Secretary T | (08) 9214 9787 E | [email protected]

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ASX Code | AUQ