ALARA RESOURCES LIMITED — Capital/Financing Update 2012

Oct 29, 2012

Telephone | +61 8 9214 9787 Facsimile | +61 8 9322 1515 Web | www.alararesources.com E-mail | info@alararesources.com

Alara Resources Limited ABN 27 122 892 719 Level 14, The Forrest Centre 221 St Georges Terrace Perth WA 6000 Australia

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ASX/MEDIA RELEASE

Tuesday, 30 October 2012

JORC Resource Upgrade and Update for Khnaiguiyah Zinc-Copper Project

Perth: Alara Resources Limited (ASX: AUQ) ( Alara ) is pleased to announce a further ~30% increase in the JORC Measured and Indicated Copper Resource at its Khnaiguiyah Zinc-Copper Project in Saudi Arabia ( Project ).

The Measured and Indicated Copper Resource has increased from the 6.67 Mt at 0.69% Cu reported in the last JORC upgrade announcement of 12 October 2012[1] to 8.53 Mt at 0.64% Cu (refer Table 2 below).

The Company also notes that the 12 October 2012 announcement reported aggregate JORC Measured and Indicated Zinc/Copper and Copper Resources for Zones 1, 2 and 3 at Khnaiguiyah without individual details of the Measured and Indicated Resources.

The Company has undertaken a review of the JORC upgrade estimates and clarifies the current JORC Zinc, Zinc/Copper and Copper Resources (including the upgrade in Copper Resource referred to above) at Khnaiguiyah on an individual Measured and Indicated basis in the following tables:

Table 1: Khnaiguiyah JORC Measured and Indicated Zinc and Zinc/Copper Resources

Current JORC Resource- October 2012	Zn Cut-off	MineralisedZones	Tonnes(Mt)	Zinc %	Copper %
	(%)
Measured	1.50	1,2	9.65	3.37	0.16
	1.50	3	6.37	5.28	0.25
Indicated	1.50	1,2	3.12	4.45	0.30
	1.50	3	6.18	3.55	0.05
Measured and Indicated	1.50	1, 2 and 3	25.32	4.03	0.17

Table 2: Khnaiguiyah JORC Measured and Indicated Copper Resource

	Cut-off Cu(%)	MineralisedZones	Tonnes (Mt)	Copper%
Current JORC Resource- October 2012
Measured	0.00	1, 2	4.70	0.72
	0.00	3	1.07	0.63
Indicated	0.00	1, 2	1.59	0.54
	0.00	3	1.16	0.43
Measured and Indicated	0.00	1, 2 and 3	8.53	0.64

– ENDS –

For further information, please contact:

Shanker Madan T | +61 8 9214 9787 Managing Director E | smadan@alararesources.com

1 Refer ASX market announcement dated 12 October 2012: JORC Resource Upgrade for Khnaiguiyah Zinc-Copper Project

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20121030 AUQ ASX JORC Resource Upgrade and Update for Khnaiguiyah Zinc-Copper Project

About Alara Resources

Alara Resources Limited (ASX: AUQ) is an Australian-based minerals exploration and development company with a diverse portfolio of projects in Saudi Arabia and Oman.

With a strong pipeline of advanced and early stage projects, Alara is moving towards establishing itself as an emerging base and precious metals development company.

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

COMPETENT PERSONS’ STATEMENTS

• (1) The information in this announcement that relates to Zinc and Copper Mineral Resources within Mineralised Zones 1 and 2 (referred to in Tables 1 and 2 of this announcement) of the Khnaiguiyah Project is based on information compiled by Mr Ravindra Sharma, who is a Chartered Professional Member of The Australasian Institute of Mining and Metallurgy and Registered Member of The Society for Mining, Metallurgy and Exploration. Mr Sharma is a principal consultant to Alara Resources Limited. Mr Sharma has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity they are undertaking to qualify as Competent Persons in terms of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2004 edition). Mr Sharma consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

• (2) The information in this announcement that relates to Zinc and Copper Mineral Resources within Mineralised Zone 3 (referred to in Tables 1 and 2 of this announcement) of the Khnaiguiyah Project is based on information compiled by Mr Daniel Guibal, an employee of SRK Consulting (Australasia) Pty Ltd, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Guibal has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity they are undertaking to qualify as Competent Persons in terms of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2004 edition). Mr Guibal consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

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