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ALARA RESOURCES LIMITED Capital/Financing Update 2015

Sep 17, 2015

64461_rns_2015-09-17_9b0c558a-8cde-4691-be07-88038faf26a3.pdf

Capital/Financing Update

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Alara Resources Limited A.B.N. 27 122 892 719 Level 11, 216 St Georges Tce Perth WA 600, Australia GPO Box 2517 Perth WA 6831

Telephone | +61 8 9481 0389 Facsimile | +61 8 946306103 Web | www.alararesources.com Email | [email protected]

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ASX/MEDIA RELEASE

Friday, 18 September 2015

KHNAIGUIYAH PROJECT UPDATE

Perth: Alara Resources Limited (ASX: AUQ) ( Alara or Company ) reports on the submission of a new mining licence application in Khnaiguiyah, Saudi Arabia.

New Mining Licence application submitted

The Company refers to the licensing section of its Quarterly Activities Report[1] . In particular, exploration licences and applications included in the Shareholders’ Agreement between Alara and United Arabian Mining Company that are expired and/or cancelled.

Further to the latest announcement regarding Alara’s joint venture with Bayan Mining Company LLC (‘Bayan’)[2] , the Company is pleased to report that further steps are being taking to help preserve existing value and upside potential[3] of the Khnaiguiyah Project.

Bayan has now submitted a mining licence application over areas that are adjacent to the Khnaiguiyah Mining Licence, including the southern end of the K3 pit[4] .

Further updates will be provided as developments occur.

– ENDS –

For further information, please contact:

Justin Richard T | +61 8 9481 0389 Managing Director E | [email protected] Elizabeth Hunt T | +61 8 9481 0389 Company Secretary E | [email protected]

About Alara Resources

Alara Resources Limited (ASX: AUQ) is an Australian-based minerals exploration and mine development company with a portfolio of projects in Saudi Arabia and Oman. Alara has completed a Definitive Feasibility Study (DFS) on its Khnaiguiyah Zinc-Copper Project in Saudi Arabia, an Advanced Scoping Study on its Daris/Washihi Copper-Gold Projects in Oman and an Updated Advanced Scoping Study on its Washihi Project. For more information, please visit: www.alararesources.com.

1 Refer page 3 of Alara’s Quarterly Activities Report dated 31 July 2015

2 Refer Alara’s ASX Market Announcement dated 20 August 2015: Alara and Bayan Extend Framework Agreement to include Khnaiguiyah Sites.

3 Refer “Future Growth and Opportunities” section page 20 of the Company’s 2014 Annual Report.

4

Refer page 4 of Alara’s ASX Market Announcement dated 30 April 2013: Positive DFS Khnaiguiyah Zinc-Copper Project

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ASX Code | AUQ