ALARA RESOURCES LIMITED — Capital/Financing Update 2011

Apr 20, 2011

Alara Resources Limited Telephone | +61 8 9214 9787 A.B.N. 27 122 892 719 Facsimile | +61 8 9322 1515 Level 14, The Forrest Centre Web | www.alararesources.com 221 St Georges Terrace Email | info@alararesources.com Perth Western Australia 6000

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Thursday, 21 April 2011

MARKET ANNOUNCEMENT

Completion of Tranche 1 $6.48 Million Share Placement and Updated Top 20 Shareholders

Alara Resources Limited is pleased to confirm that it has completed a $6.48 million placement of 18 million shares at $0.36 per share to a range of professional and institutional clients of Petra Capital Pty Ltd.

This completes Tranche 1 of a $30.24 million / 84 million shares capital raising announced by the Company on 14 April 2011[1] .

Tranche 2 of 66 million shares (to raise $23.76 million) will be issued subject to shareholder approval at a general meeting scheduled for 26 May 2011.

An updated Shareholder Distribution Schedule and Top 20 Shareholders’ Listing is attached to this market announcement.

Further information:

Victor Ho Company Secretary T | (08) 9214 9787 E | vho@alararesources.com

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1 Refer Alara market announcements dated 14 April 2011 and entitled “Completion of $30 Million Capital Raising”

ASX Code | AUQ

20110421 AUQ ASX Completion of Tracnhe 1 $6.48 Million Share Placement and Updated Top 20 Shareholders.doc

DISTRIBUTION OF ORDINARY FULLY PAID SHARES

	Spread		**of **	Holdings	Number of Holders	Number of Units	**% of Total Issue Capital **
	1	-		1,000	1,258	507,719	0.351
	1,001	-		5,000	424	1,041,372	0.721
	5,001	-		10,000	281	2,421,817	1.676
	10,001	-		100,000	506	17,360,059	12.013
	100,001	-		and over	117	123,176,533	85.239
Total					2,586	144,507,500	100%

TOP 20 ORDINARY FULLY PAID SHAREHOLDERS

Rank Shareholder 1 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 3 2 J P MORGAN NOMINEES AUSTRALIA LIMITED JP MORGAN NOMINEES AUSTRALIA LIMITED 3 NATIONAL NOMINEES LIMITED 4 ORION EQUITIES LIMITED 5 CITICORP NOMINEES PTY LIMITED CITICORP NOMINEES PTY LIMITED 6 MRS LINDA SALA TENNA AND MRS LISA SHALLARD KATANA ASSET MANAGEMENT LTD 7 RBC DEXIA INVESTOR SERVICES AUSTRALIA NOMINEES PTY LIMITED RBC DEXIA INVESTOR SERVICES AUSTRALIA NOMINEES PTY LIMITED 8 BENTLEY CAPITAL LIMITED 9 GWYNVILL TRADING PTY LTD 10 COGENT NOMINEESPTY LIMITED 11 FLANNERY FOUNDATION PTY LTD 12 URBAN PAT PTY LTD 13 MR ROBERT SPADANUDA 14 THORPE ROAD NOMINEES PTY LTD 15 BLUEFLAGHOLDINGSPTY LTD 16 MR PETER KELVIN RODWELL 17 MR ROBERT GEMELLI 18 MR SCOTT PAUL JONES & MR RODNEY MALCOLM JONES & MISS CAROL ROBIN JONES 19 COVELANE GOLD COAST PTY LTD 20 UBS NOMINEES PTY LTD UBS NOMINEES PTY LTD Total	Total % Issued
	Shares Capital
	10,402,318 10,582,382 25,351 Sub-total 21,010,051 14.539 20,713,243 2,469,919 Sub-total 23,183,162 16.043 18,993,106 13.143 7,332,744 5.074 5,161,671 320,000 Sub-total 5,481,671 3.793
	2,700,000 1,180,000 Sub-total 3,880,000 2.685 3,255,208 3,365 Sub-total 3,258,573 2.255 2,000,000 1.384 1,971,527 1.364 1,870,627 1.294
	1,378,860 0.954 1,300,000 0.900 1,140,000 0.789 1,078,350 0.746 1,053,000 0.729
	1,000,000 0.692 1,000,000 0.692 955,737 0.661 929,561 0.643 927,080 1,762 Sub-total 928,842 0.643
	99,745,811 69.023%

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