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ALARA RESOURCES LIMITED Capital/Financing Update 2016

Aug 2, 2016

64461_rns_2016-08-02_fd62761a-d24f-459c-a8b1-156b9e93acca.pdf

Capital/Financing Update

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Alara Resources Limited Telephone | +61 8 9481 0389 A.B.N. 27 122 892 719 Facsimile | +61 8 9463 6103 Level 11, 216 St Georges Tce Web | www.alararesources.com Perth WA 6000, Australia Email | [email protected] GPO Box 2517 Perth WA 6831

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ASX/MEDIA RELEASE

Wednesday, 3 August 2016

CLOSURE OF RENOUNCEABLE RIGHTS ISSUE

Alara Resources Limited (ASX: AUQ) (Company) is pleased to announce the successful completion of a renounceable pro rata entitlement offer of shares, made pursuant to the prospectus dated 8 July 2016 on the basis of 1 new share for every 7 existing share held at 14 July 2016 (Rights Issue).

A total of 72,287,857 shares were offered to eligible shareholders under the Rights Issue at an issue price of $0.02 (2 cents) per share to raise approximately $1.45M before costs.

Acceptances of entitlement to 34,161,653 shares were received, along with applications for 11,534,941 additional shares and 160,000 shortfall shares to raise a total of $917,131.88.

The remaining shortfall of 26,431,263 shares will be dealt with in accordance with the procedures set out in the prospectus.

The Company is pleased with the outcome and the level of support it received from its shareholders and new investors, particularly in these difficult market conditions. The Board believes this reflects the quality of the Company’s projects and the exciting milestones that Alara aims to achieve in the near future.

– 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 flagship Khnaiguiyah Zinc-Copper Project in Saudi Arabia and an Advanced Scoping Study on its Daris/Washihi Copper-Gold Project in Oman. The Company is now transitioning towards establishing itself as an emerging base and precious metals mine development and production company. For more information, please visit: www.alararesources.com.

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ASX Code | AUQ