ALARA RESOURCES LIMITED — Capital/Financing Update 2016

Jul 27, 2016

Alara Resources Limited A.B.N. 27 122 892 719 Level 11, 216 St Georges Tce Perth WA 6000, Australia GPO Box 2517 Perth WA 6831

Telephone | +61 8 9481 0389 Facsimile | +61 8 9463 6103 Web | www.alararesources.com Email | info@alararesources.com

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ASX/MEDIA RELEASE

Thursday, 28 July 2016

AL HADEETHA COPPER-GOLD PROJECT UPDATE WASHIHI INFILL DRILLING RESULTS

Alara Resources Limited (ASX: AUQ) (Alara or Company) is pleased to report the results of the recent drilling program completed at the Washihi Exploration License in Oman.

Six boreholes of between 80 to 244 meters in depth were drilled in targeted regions of inferred mineral resource, with the objective of increasing confidence in the continuity of mineralization and providing potential to upgrade more Inferred resource to the Indicated category.

In addition to providing confidence that the Washihi resource estimates can be upgraded in the upper levels of the deposit, the drilling program also identified previously unknown high grade copper and gold mineralisation.

Multi element analysis of samples from the drilling program is now complete and the results are being incorporated into the Washihi resource model.

The revised resource model will be announced as soon as possible, but is expected next month.

A complete listing of all drill hole intersections is provided as Table I below. Notable intersections include:

• WH16RD013 with 61 m @ 0.48 % Cu, 0.18 g/t Au including 6m @ 1.13 % Cu, 0.16 g/t Au

• WH16RD014 with 6 m @ 1.22 % Cu, 0.25 g/t Au

• WH16RD015 with 7 m @ 2.93 % Cu, 2.71 g/t Au, 22.37 g/t Ag and 34 m @ 1.19 % Cu, 0.27 g/t Au

• WH16RD018 with 88 m @ 0.72 % Cu including 12m @ 1.28 % Cu and 11m @ 1.10% Cu

• WH16RD019 with 11 m @ 4.69 g/t Au, 0.31% Cu, 17.85 g/t Ag

and as previously announced:

• WH16RD012 with 5m @ 3.29% Cu, 5.04 g/t Au, 21.72 g/t Ag

Note: WH16RD012 intersection of high grade Cu and Au mineralization in massive sulphides outside existing mineral resource model.

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ASX Code | AUQ

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 | info@alararesources.com GPO Box 2517 Perth WA 6831

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The program included a total of 851.9 meters drilled vertically using Reverse Circulation drilling method. Two drill holes began with RC drilling but converted to Diamond Core Drilling due to technical difficulties encountered with the rig. This step was proactively taken to ensure good sample recovery.

Alara employed a rigorous QAQC program. Drill Core was sampled and saw split in Oman. Split half core samples together with RC samples and QC samples were shipped to ALS Laboratory, Jeddah, Saudi Arabia for crushing, pulverization and chemical analyses. A total of 581 samples (excluding QC samples) were submitted to ALS Jeddah for chemical analysis. Results of 75 samples were reported on 8th June 2016 (Drill hole WH16RD012).

ALS analysed all samples for Cu, Au and 32 other elements. Copper and another 32 elements were analysed by Inductively Coupled Plasma Optical Emission Spectrometry and Gold was analysed using 50g Fire Assay followed by AAS (Atomic absorption spectroscopy). The results received have passed QAQC carried out by competent person and are found to be accurate, unbiased and fit for the purpose to use in this announcement and for updating the existing mineral resource model. Check assays were performed on ore grade samples by independent laboratory at a minimum rate of 5%.

Table-I: Significant Mineralised Intersections.

MINERALISED ZONE - SIGNIFICANT INTERSECTIONS - WASHIHI PROSPECT Infill Drilling 2016	MINERALISED ZONE - SIGNIFICANT INTERSECTIONS - WASHIHI PROSPECT Infill Drilling 2016	MINERALISED ZONE - SIGNIFICANT INTERSECTIONS - WASHIHI PROSPECT Infill Drilling 2016	MINERALISED ZONE - SIGNIFICANT INTERSECTIONS - WASHIHI PROSPECT Infill Drilling 2016	MINERALISED ZONE - SIGNIFICANT INTERSECTIONS - WASHIHI PROSPECT Infill Drilling 2016	MINERALISED ZONE - SIGNIFICANT INTERSECTIONS - WASHIHI PROSPECT Infill Drilling 2016	MINERALISED ZONE - SIGNIFICANT INTERSECTIONS - WASHIHI PROSPECT Infill Drilling 2016	MINERALISED ZONE - SIGNIFICANT INTERSECTIONS - WASHIHI PROSPECT Infill Drilling 2016
	Significant Mineralization				Mineralized Zone
Drill Hole	Intersections	From(m)	To (m)	Length(m)	Cu (%)	Au (g/t)	Zn (%)	Ag (g/t)
WH16RD013	Primary	48	109	61	0.48	0.18	0.05	1.06
	Inclusion	58	64	6	1.13	0.16	0.03	2.28
	Inclusion	108	109	1	1.18	0.28	0.11	3.30
WH16RD014	Primary	59	65	6	1.22	0.25	0.10	1.93
	Primary	87	94	7	0.21	0.25	0.24	1.01
WH16RD015	Primary	75	82	7	2.93	2.71	0.05	22.37
	Inclusion	78	80	2	4.99	3.11	0.06	32.10
	Primary	91	125	34	1.19	0.27	0.05	1.69
	Inclusion	106	122	16	1.79	0.22	0.03	1.14
	Primary	155	171	16	0.45	0.08	0.01	0.55
	Inclusion	160	162	2	0.95	0.09	0.01	0.80
WH16RD018	Primary	113	201	88	0.72	0.06	0.02	0.74
	Inclusion	135	147	12	1.28	0.07	0.03	2.17
	Inclusion	152	163	11	1.10	0.07	0.04	0.71
WH16RD019	Primary	12	13	1	0.11	1.90	0.07	1.00
	Primary	35	46	11	0.31	4.69	0.84	17.85
Previously Announced Results(ASX Release			of 8th June 2016).
WH16RD012	Primary	5.5	14	8.5	0.32	0.19	0.18	0.65

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ASX Code | AUQ

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 | info@alararesources.com GPO Box 2517 Perth WA 6831

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	Primary	20	25	5	3.29	5.04	0.22	21.72
	Inclusion	22	24	2	5.77	8.00	0.17	39.95
	Primary	44	48	4	0.14	7.89	1.23	66.53
	Inclusion	47	48	1	0.34	18.65	4.09	142.00
	Primary	64	92	28	0.50	0.26	0.07	1.82
	Inclusion	69	72	3	0.68	0.59	0.14	8.17
	Inclusion	74	78	4	1.06	0.17	0.03	0.81

Notes to accompany Table I:

• The drill hole primary mineralised intersections have a 0.2% Cu cut-off grade which is a natural break/sharp change is assay results differentiating between mineralised and non-mineralised intersections.

• Grade cut off at 0.2% Cu is also a reasonable economic cut-off to delineate potential mineralisation.

• The intersection less than 0.2 % Cu within the primary intersection has been included as internal dilution, in order to have true representation of potential economic mineralized interval.

• The length is reported as down-hole length in a vertical hole.

• True thickness will be calculated at resource interpretation stage.

• The grade is reported as down-hole length weighted average grade.

The drill hole plan in Figure-I shows the location of the infill drill program relative to previous drill programs. The drill cross sections are provided as Figure-II, III, IV and V.

Figure-I: Infill drilling location plan

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Figure-II: Drill Cross Section P1-P1

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ASX Code | AUQ

Alara Resources Limited A.B.N. 27 122 892 719 Level 11, 216 St Georges Tce Perth WA 6000, Australia GPO Box 2517 Perth WA 6831

Telephone | +61 8 9481 0389 Facsimile | +61 8 9463 6103 Web | www.alararesources.com Email | info@alararesources.com

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Figure-III: Drill Cross Section P2-P2

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Figure IV: Drill Cross Section P4-P4

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ASX Code | AUQ

Alara Resources Limited A.B.N. 27 122 892 719 Level 11, 216 St Georges Tce Perth WA 6000, Australia GPO Box 2517 Perth WA 6831

Telephone | +61 8 9481 0389 Facsimile | +61 8 9463 6103 Web | www.alararesources.com Email | info@alararesources.com

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Figure V: Drill Cross Section P5-P5

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ASX Code | AUQ

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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 | info@alararesources.com GPO Box 2517 Perth WA 6831

APPENDIX –I: JORC CODE, 2012 EDITION - TABLE -1 REPORT

SECTION 1 SAMPLING TECHNIQUES AND DATA (Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary	Commentary
Sampling	• Nature and quality of sampling (e.g. cut channels,	•	Sampling data includes Drill Core Samples (DC Samples) and RC chip
techniques	random chips, or specific specialized industry		samples (RC samples). Diamond drilling and reverse circulation (RC)
	standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments,		drilling were used to obtain samples for geological logging, sampling and assaying. Average sample length of drill core samples is 1 m; Average sample length of RC samples is 1 m. Sample interval boundaries honour geological boundaries. Both logging and sampling is done by highly
	etc.). These examples should not be taken as		experienced project geologist following industry standard to assure high
	limiting the broad meaning of sampling.		quality of sampling.
	• Include reference to measures taken to ensure	•	RC drill holes are generally sampled at 1m intervals and split using a cone
	sample representivity and the appropriate		splitter attached to the cyclone to generate a split of ~3 or more kg. RC
	calibration of any measurement tools or systems		Overweight samples (>3kg) were re-split with portable riffle splitter to
	used.		about 1.6 – 2.5 kg to generate sample sent to lab for analyses.
	• Aspects of the determination of mineralization		Drill core was marked considering mineralization intensity and then
	that are Material to the Public Report.		halved with a diamond saw to produce equal half core samples.
	• In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse	•	Generally drill core sampling is done at 1m intervals with shorter or longer samples at geological contacts. Sampling was systematic and unbiased. Samples selected for sampling
	circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more		and subsequent sample preparation and chemical analysis are based on geological logging with sample breaks after appropriate sampling interval or at rock unit contact.
	explanation may be required, such as where there is coarse gold that has inherent sampling	•	The DC and RC samples after QC samples inserts, packing and shipping to laboratory were checked against sample submittal form, dried and
	problems. Unusual commodities or mineralization		crushed to 70% -2mm then rotarysplit off upto 250g;the split was

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ASX Code | AUQ

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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 | info@alararesources.com GPO Box 2517 Perth WA 6831

Criteria	JORC Code explanation	Commentary
	types (e.g. submarine nodules) may warrant	pulverized to better than 85% passing a 75 micron. Pulverizer bowls were
	disclosure of detailed information.	carbon steel. The resultant pulps were then analysed. The pulverized
		samples were analysed for Copper and other 32 elements digested by
		four acid digestions followed by ICP-OES; for Gold using 50g Fire Assay
		followed by AAS. After pulverization, lab stored all the rejects for future
		use. Pulverization and Crushing at laboratory was controlled by Grind
		QC tests.
Drilling techniques	• Drill type (e.g. core, reverse circulation, open-hole	• Diamond drilling and reverse circulation (RC) drilling were used to obtain
	hammer, rotary air blast, auger, Bangka, sonic,	samples. RC Drilling was conducted using a reverse circulation rig with
	etc.) and details (e.g. core diameter, triple or	115mm to 133mm face-sampling bits. Diamond drilling was conducted
	standard tube, depth of diamond tails, face-	only in drill holes where RC drilling was difficult to proceed or due to
	sampling bit or other type, whether core is	mechanical problems or encountered ground water in the hole.
	oriented and if so, by what method, etc.).	Diamond drilling was in HQ3 drill diameters. Standard tube was used.
		Only two holes (WH16RD013 from 92m up to end of hole and
		WH16RD015 from 74m up to end of hole) out of 6 were converted to
		diamond core drilling. Drill core was not oriented.
Drill sample recovery	• Method of recording and assessing core and chip	• Drill core recoveries from diamond drilling were recorded following
	sample recoveries and results assessed.	standard logging practice by recording drill hole run length and recovered
	• Measures taken to maximize sample recovery and	length. High core recovery of plus 90% from all mineralized intervals was
	ensure representative nature of the samples.	achieved from all drill core intervals. Recovery measurements are poor in
	• Whether a relationship exists between sample	broken rock and this was reflected in less weight of the samples.
	recovery and grade and whether sample bias may	RC samples were weighed on a regular basis and no sample recovery
	have occurred due to preferential loss/gain of	issues were encountered during the drilling program. While there was no
	fine/coarse material.	sample recovery issue in the RC drill hole WH16RD012 (exploration results reported in ASX/MEDIA RELEASE Wednesday, 8th June 2016) the
		potential of getting into a recovery problem was identified in the holes
		WH16RD013 and WH16RD015 whenground water was encountered in

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ASX Code | AUQ

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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|| info@alararesources.com|
|GPO Box 2517|||
|Perth WA 6831|||

Criteria	JORC Code explanation	Commentary
		the hole and made continuation of further RC drilling difficult. It was
		purely due to the mechanical incapability of the drilling rig which began
		to pump water through the sampling cyclone. That indicated potential to
		impact on RC sampling. The decision to convert the drilling method was
		proactive and professional judgment was used in identifying the issue as
		one that may impact recovery if continued, and due to this, it was
		switched over to drill core. This does not necessarily mean that a recovery
		issue occurred but that proactive steps were taken to ensure good sample
		recovery.
		No sampling recovery issue were observed. In one hole at one place
		where core recovery was reported nil is duly recorded as gap.
		• Diamond drilling used drill muds and short runs in broken ground to
		maximize recovery.
		RC samples were collected in plastic bags directly from the cyclone and
		laid directly on the ground in rows of 10. The sampling cyclone and sample
		buckets were cleaned between rod changes and after each hole to
		minimise down hole and/or cross contamination. RC Overweight samples
		(>3kg) were re-split with portable riffle splitter to about 1.6 – 2.5Kg.
		• Relationship between sample recovery and grade was not found while
		statistical evaluation of data. There is no observation and statistically not
		supported that sample bias due to loss/gain of fine/coarse material could
		occur.
Logging	• Whether core and chip samples have been	• RC and Core Drill holes were geologically logged following Alara standard
	geologically and geotechnically logged to a level	operating procedure. Basic geotechnical logging has been done Core drill
	of detail to support appropriate Mineral Resource	hole intervals. Output of logging provided all data required for reporting
	estimation, mining studies and metallurgical	of exploration results and following mineral resource estimation and
	studies.	future mining and metallurgical studies.
	• Whether logging is qualitative or quantitative in	• Oxidation, colour, alteration, alteration and mineralisation are logged

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ASX Code | AUQ

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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|| info@alararesources.com|
|GPO Box 2517|||
|Perth WA 6831|||

Criteria	JORC Code explanation	Commentary
	nature. Core (or costean, channel, etc.)	qualitatively. All other values are logged quantitatively. All drill cores
	photography.	have been photographed, and these photos are stored in a database. The
	• The total length and percentage of the relevant	entire drill holes length was logged.
	intersections logged.
Sub-sampling techniques	• If core, whether cut or sawn and whether quarter,	• Drill core samples were split by saw or manually (manually in case of
and sample preparation	half or all core taken.	crushed material in tectonic zones). Drill core samples represent
	• If non-core, whether riffled, tube sampled, rotary	adequate half core samples.
	split, etc. and whether sampled wet or dry. • For all sample types, the nature, quality and	• RC drill holes are sampled dry at 1m intervals and split using a cone splitter attached to the cyclone to generate a split of ~3 or more kg in plastic bags. Overweight samples (>3kg) were re-split with portable riffle
	appropriateness of the sample preparation	splitter to about 1.6 – 2.5 kg. These plastic bags were then put into
	technique.	uniquely numbered calico bags and packed in a steel trunk before
	• Quality control procedures adopted for all sub-	dispatching to laboratory with clear submittal form.
	sampling stages to maximize representivity of	• The DC and RC samples after QC samples inserts, packing and shipping to
	samples. • Measures taken to ensure that the sampling is	laboratory were checked against sample submittal form, dried and crushed to 70% -2mm then rotary split off up to 250g; the split was pulverized to better than 85% passing a 75 micron. Pulverizer bowls were
	representative of the in situ material collected,	carbon steel. Details for sample preparation are included in the Alara
	including for instance results for field	sample flowsheet. Sampling preparation is at high quality standards and
	duplicate/second-half sampling.	consider appropriate. Premium rotary splitting procedure was used in
	• Whether sample sizes are appropriate to the grain	laboratory. There was no inappropriateness observed with respect to RC/
	size of the material being sampled.	Drill Core sample preparation. • Quality control was adopted for all sub-sampling stages. During initial sub-
		sampling while drill core splitting, adequacy of splitting was checked by
		project geologist to ensure that splitting is not biased. For RC samples
		field duplicates has been obtained and inserted into sample stream.
		Pulverization and Crushing at laboratory was controlled by Grind QC tests.
		Field blanks were inserted into the sample stream to check for

ASX Code | AUQ

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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 | info@alararesources.com GPO Box 2517 Perth WA 6831

Criteria	JORC Code explanation	Commentary
		contamination.
		• Quality control adopted along with continuous supervision on drilling by
		Alara responsible geologist as well as supervision on drill core splitting are
		considered to be sufficient measures to ensure representativeness of the
		sampling. Beside that results of field duplicates inserted into sample
		stream are satisfactory.
		• Sample sizes were considered appropriate for the commodity.
Quality of assay data and	• The nature, quality and appropriateness of the	• The pulverized samples were analysed for Copper digested by four acid
laboratory tests	assaying and laboratory procedures used and	digestions followed by ICP-OES (Inductively Coupled Plasma Optical
	whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld	Emission Spectrometry); for Gold using 50g Fire Assay followed by AAS (Atomic absorption spectroscopy). Other 32 elements including Zn, Ag were analysed by four acid digestions followed by ICP-OES (Inductively Coupled Plasma Optical Emission Spectrometry). The technique used is
	XRF instruments, etc., the parameters used in	considered total. Assaying and laboratory procedures are considered
	determining the analysis including instrument	appropriate for the commodity.
	make and model, reading times, calibrations	• Ground magnetic survey, IP survey and EM survey has been done on the
	factors applied and their derivation, etc.	property in the past; the results are not part of this ASX/Media release.
	• Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy	No geophysical tools and handheld XRF was used to determine material element concentrations used in this ASX/MEDIA Release. • Competent Person reviewed laboratory QA/QC (lab internal QA/QC) procedure and results and external QA/QC (Quality control samples
	(i.e. lack of bias) and precision have been	inserted by Alara) procedures and results. Alara quality control procedure
	established.	is well documented. External QA/QC includes certified reference
		materials (standards), Field blanks, Field duplicates. Acceptable levels of
		accuracy and precision have been established. Selection of samples for
		check assaying by independent laboratory is currently under progress,
		selected pulp samples will be sent to independent laboratory and results
		will be compared withprimaryassaydata.

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ASX Code | AUQ
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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 | info@alararesources.com GPO Box 2517 Perth WA 6831

Criteria	JORC Code explanation	Commentary
Verification of sampling	• The verification of significant intersections by	• Calculation of drill hole intersections which are part of this ASX/Media
and assaying	either independent or alternative company	release was verified by re-calculation of all intersections by independent
	personnel. • The use of twinned holes. • Documentation of primary data, data entry	company and by verifying analytical values of each individual sample against signed laboratory PDF certificate. • No twinned holes are part of this ASX/media release. • All compiled data was checked for errors and missing data. Dataset was
	procedures, data verification, data storage	checked for logical errors, i.e. transposition of intervals, mislabelling of
	(physical and electronic) protocols.	data, missing data, etc. Electronic data are backed up at secure FTP
	• Discuss any adjustment to assay data.	location and physical data including primary are stored at project site and
		Alara office in Muscat.
		Remaining drill core (second half core) is available for all of the drill hole
		intervals and can be used for future studies and/or confirmatory testing.
		RC Chips are stored in calico bags in dry storage and available for all drill
		hole intervals for future studies and/or confirmatory testing.
		• No adjustment was done to the assay data.
Location of data points	• Accuracy and quality of surveys used to locate drill	• Drill holes Collar data were surveyed by using hand held GPS, Survey done
	holes (collar and down-hole surveys), trenches,	by DGPS survey will be done before using 2016 infill drill holes in resource
	mine workings and other locations used in Mineral Resource estimation.	estimation. Down hole survey has not been done, all drill holes were drilled as vertical.
	• Specification of the grid system used.	• Coordinate system UTM, Zone = 40 North, Datum Transformation = WGS 84 has been used.
	• Quality and adequacy of topographic control.	• Drilling area is covered by topographic survey with high accuracy. The
		ground levels at an average of 10 meter interval has been taken and the
		contour drawing at 0.20 meter interval has been prepared after new
		controlpoints atproject site has been established.
Data spacing and	• Data spacing for reporting of Exploration Results.	• Exploration results in form of drill hole intersections reported in this
distribution	• Whether the data spacing and distribution is	ASX/MEDIA RELEASE are for 6 infill drill holes listed in Table-I. Position of
		these holes ispresented under Figure-I includingdrill hole WH16RD012

ASX Code | AUQ

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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 | info@alararesources.com GPO Box 2517 Perth WA 6831

Criteria	JORC Code explanation	Commentary
	sufficient to establish the degree of geological and	which results were reported under ASX/MEDIA RELEASE Wednesday, 8
	grade continuity appropriate for the Mineral	June 2016.
	Resource and Ore Reserve estimation procedure(s)	• The current ASX/MEDIA Release is with exploration results of 6 drill holes.
	and classifications applied. • Whether sample compositing has been applied.	Mineral Resource Estimation including 2016 infill drill holes has not been done yet. The current 2016 infill drill holes represent sufficient data spacing and distribution to establish the degree of geological and grade
		continuity appropriate to upgrade current Mineral Resource.
		• Sampling compositing has not been done for reporting of Exploration
		Results.
Orientation of data in	• Whether the orientation of sampling achieves	• After data visualization in 3D, competent person concluded that drilling
relation to geological	unbiased sampling of possible structures and the	orientation doesn't introduce major sampling bias.
structure	extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation	• Exploration results in form of drill hole intersections are reported in this ASX/MEDIA release as downhole length/ drilled; true thicknesses was not calculated and will be incorporated at the interpretation and resource modelling stage.
	and the orientation of key mineralized structures
	is considered to have introduced a sampling bias,
	this should be assessed and reported if material.
Sample security	• The measures taken to ensure sample security.	• Security of samples was maintained very well from dispatch of samples
		up to data storage. Samples in the form of half core and RC chips are
		stored at project site; coarse and pulp rejects are stored in ALS Jeddah
		laboratory, Saudi Arabia and will be despatched back to project site.
		Transport to the laboratory was done using professional couriers and
		secured, meeting all necessary requirements for chain of custody.
		Trackingsheets was implemented to track sampleprogress.
Audits or reviews	• The results of any audits or reviews of sampling	• Data were reviewed in detail by Mr. R. Sharma (Competent Person as
	techniques and data.	defined in the JORC Code, 2012 edition) who also visited the Washihi
		project site on duringthe 2016 infill drilling (May2016).

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ASX Code | AUQ

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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 | info@alararesources.com GPO Box 2517 Perth WA 6831

SECTION 2 REPORTING OF EXPLORATION RESULTS

(Criteria listed in the preceding section also apply to this section)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land	• Type, reference name/number, location and	• Washihi Exploration license of Al Hadeetha Copper - Gold project is held by Al
tenure status	ownership including agreements or material issues	Hadeetha Resources LLC. Al Hadeetha Resources LLC is a limited liability company
	with third parties such as joint ventures, partnerships,	incorporated in the Sultanate of Oman. Shareholders in the company are Alara Oman
	overriding royalties, native title interests, historical	Operations Pty Ltd (70%) a wholly owned subsidiary of Alara Resources Ltd and Al
	sites, wilderness or national park and environmental	Hadeetha Investments LLC (related to the Al Naba Group of Companies). Alara
	settings.	Resources Limited (ASX: AUQ) is an Australian based minerals exploration company
	• The security of the tenure held at the time of reporting	with a portfolio of projects in Saudi Arabia and Oman.
	along with any known impediments to obtaining a	• Exploration license with total area 39km2 covering Washihi Copper - Gold deposit was
	license to operate in the area.	granted on January 2008 and has been renewed annually since then, with the most
		renewal in March 2016. Alara also confirms a Mining application covering 3km² atof
		Al Hadeetha Copper - Gold projecthas also been filed with the Public Authority for
		Mining.
Exploration done by other	• Acknowledgment and appraisal of exploration by	• The Washihi prospect was discovered during the course of regional reconnaissance by
parties	other parties.	Prospection Ltd. during 1976-77. They carried out 1:2000 scale geological mapping,
		geophysical, geochemical surveys and drilled ten diamond drill holes. The geophysical
		surveys included Pulse electro-magnetic and ground magnetics. Soil samples were
		taken.
		• Exploration work by Ministry of Petroleum and Minerals: Geologists from the Ministry
		of Petroleum and Minerals reviewed the work undertaken by Prospection Ltd. in their
		report. The report concluded that the Prospection Limited drilling intersected a
		moderate amount of copper mineralization.
		• BRGM undertook regional scale mapping (1:100,000) as well as a review and work
		program over a number ofprospects includingthe Washihiprospect. More detailed

ASX Code | AUQ

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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|| info@alararesources.com|
|GPO Box 2517|||
|Perth WA 6831|||

Criteria	JORC Code explanation	Commentary
		investigations on Washihi were limited to the compilation and reinterpretation of
		previous work on the prospect including examination re-logging and limited re-
		sampling of drill holes from the Prospection Ltd. work.
		• World Geosciences Corporation (WGC) undertook an airborne geophysical survey and
		interpretation over the area during 1995/1996. The WGC survey collected magnetic
		and gamma ray (radiometric) data and digital elevation data.
		• Exploration work by National Mining Company (NMC) reviewed the Prospection Ltd.
		drill logs. They did an initial geological survey on 1: 10,000 scale for about 10 km2 area.
		In addition, limited surface outcrops were sampled away from the gossan. They made
		a data set of ground geophysical survey on Washihi prospect by WGC in 1997, a basis
		for further exploration. Their drill targets were based on the geological mapping and
		geophysical data. NMC drilled 15 holes in two drilling programs following the WGC
		recommendation of targets.
		• Exploration work by Pilatus Resources Oman (PRO). After receiving the Exploration
		License and evaluation of all the previous data and records PRO decided to conduct
		the exploration on the following three lines: Structural survey, Geochemical survey
		and Drilling
Geology	• Deposit type, geological setting and style of	• The area is largely underlain by the Samail Ophiolite, with the Hawasina nappes
	mineralization.	appearing at the front of the Samail Nappe in Jabal al Hammah as well as in windows
		in Wadi Andam and Wadi Musfa.
		• The area around the Washihi Prospect is structurally complex and a large part of it is
		covered by wadi gravels. The area contains limited outcrops of several different
		geological units. The Washihi gossan outcrops in the center of the area surrounded by
		ophiolitic basalts and associated sediments. At the northeast of the gossan and
		southwest of Wadi Andam, the geology of Washihi prospect is in form of a mixture of
		sedimentary and igneous features. As the area is mostly devoid of any outcrops and
		most of the rock outcrops are covered under alluvial sediments, the interpreted
		geological map was developed based on the interpretation of alterations zones
		observed aftergroundgeophysical surveys.

ASX Code | AUQ

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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 | info@alararesources.com GPO Box 2517 Perth WA 6831

Criteria	JORC Code explanation	Commentary
Drill hole Information	• A summary of all information material to the	• The collar locations, dip, azimuth, drill hole length are tabulated in Appendix II ofthis
	understanding of the exploration results including a	announcement.Drill hole intersections of Cu, Au but also Zn and Ag are tabulated in
	tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above	this ASX/MEDIA RELEASE underTable-I with all required information including depth. • Competent Person reviewed all data related to drill holes no exclusion of information has been done.
	sea level in meters) of the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
	• If the exclusion of this information is justified on the
	basis that the information is not Material and this
	exclusion does not detract from the understanding of
	the report, the Competent Person should clearly
	explain why this is the case.
Data aggregation methods	• In reporting Exploration Results, weighting averaging	• Drill hole intersections of Copper and corresponded Gold mineralization and Zn, Ag
	techniques, maximum and/or minimum grade	are reported as length weighted average, no top cut has been applied, Cut off grade
	truncations (eg cutting of high grades) and cut-off	applied is 0.2 Cu % is potential economic cut off to delineate potential mineralization.
	grades are usually Material and should be stated.	The cut off also represent natural break/ sharp change in assays Cut off grade 0.2% Cu
	• Where aggregate intercepts incorporate short lengths	used in exploration results reporting represents a likely optimum cut off grade for
	of high grade results and longer lengths of low grade	delineating potential mineralization.
	results, the procedure used for such aggregation	• Cu, Au, Zn, Ag grade for drill hole intersection is calculated as length weighted average
	should be stated and some typical examples of such	to give same weight to all samples of particular drill hole intersections. True thickness
	aggregations should be shown in detail.	has not being calculated at this stage, the true thickness will be interpreted at resource
	• The assumptions used for any reporting of metal	modelling stage.
	equivalent values should be clearly stated.	• No assumptions of metal equivalent have been used.

ASX Code | AUQ

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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 | info@alararesources.com GPO Box 2517 Perth WA 6831

Criteria	JORC Code explanation	Commentary
Relationship between	• These relationships are particularly important in the	• Drill hole intersections results are reported as down hole lengths. The true thickness
mineralization widths and	reporting of Exploration Results.	will be interpreted at resource modelling stage.
intercept lengths	• If the geometry of the mineralization with respect to	• The mineralization is daylighting in north east and dipping in south west. Drill hole
	the drill hole angle is known, its nature should be	intersections are tabulated as down hole lengths for all intersections.
	reported.	• Drill hole intersection are reported only as down hole lengths. True width has not been
	• If it is not known and only the down hole lengths are	calculated and reported.
	reported, there should be a clear statement to this
	_effect(eg ‘down hole length, true width not known’). _
Diagrams	• Appropriate maps and sections (with scales) and	• Plan view of drill hole collar locations along with sectional view is part of this media
	tabulations of intercepts should be included for any	release ASX/MEDIA RELEASE under FiguresI - V. Tabulations of drill hole intersections
	significant discovery being reported These should	is part of Table-I.
	include, but not be limited to a plan view of drill hole
	collar locations and appropriate sectional views.
Balanced reporting	• Where comprehensive reporting of all Exploration	• Drill hole intersections as an outcome of 2016 infill drilling program are reported from
	Results is not practicable, representative reporting of	6 drill holes in this ASX/MEDIA release. Previously only 1 drill hole results were
	both low and high grades and/or widths should be	reported under ASX/MEDIA RELEASE Wednesday, 8 June 2016. All samples are
	practiced to avoid misleading reporting of Exploration	included in intersection interval reported in this ASX/MEDIA release underTable-I.
	Results.
Other substantive	• Other exploration data, if meaningful and material,	• No other exploration data from the past are part of this ASX/MEDIA release.
exploration data	should be reported including (but not limited to):
	geological observations; geophysical survey results;
	geochemical survey results; bulk samples – size and
	method of treatment; metallurgical test results; bulk
	density, groundwater, geotechnical and rock
	characteristics; potential deleterious or contaminating
	substances.
Further work	• The nature and scale of planned further work (eg tests	• In near future Alara plan to update JORC resources with the current 2016 infill drilling
	for lateral extensions or depth extensions or large-	program including testing uniform conditioning; Grade and structural domaining with
	scale step-out drilling).	OrdinaryKriging.

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ASX Code | AUQ

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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 | info@alararesources.com GPO Box 2517 Perth WA 6831

Criteria	JORC Code explanation	Commentary
	• Diagrams clearly highlighting the areas of possible
	extensions, including the main geological
	interpretations and future drilling areas, provided this
	information is not commercially sensitive.

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ASX Code | AUQ
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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 | info@alararesources.com GPO Box 2517 Perth WA 6831

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APPENDIX II: WASHIHI INFILL DRILLING, DRILL HOLE COLLAR TABLE

HOLE ID	COLLAR EASTING	COLLAR NORTHING	COLLAR RL (M)	AZIMUTH (⁰)	DIP (⁰)	133MM RC DRILLING (M)	HQ3 CORE DRILLING (M)	END OF HOLE DEPTH(M)
WH16RD012	602184	2517810	457	0	90	0.0 TO 108	NIL	108
WH16RD013	602190	2517894	457	0	90	0.0 TO 89.3	92 TO 130.9	130.9
WH16RD014	602270	2517691	463	0	90	0.0 TO 109.5	NIL	109.5
WH16RD015	602223	2517681	458	0	90	0.0 TO 74.0	74.0 TO 177.5	177.5
WH16RD018	602109	2517819	457	0	90	0.0 TO 244.0	NIL	244.0
WH16RD019	602261	2517740	464	0	90	0.0 TO 82.0	NIL	82.0

Competent Person Statement

The information in this report that relates to JORC Resources in relation to the Al Hadeetha Copper-Gold Project (Oman) is based on, and fairly represents, information and supporting documentation prepared by Mr Ravi Sharma, who is a Chartered Member of The Australasian Institute of Mining and Metallurgy. 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 he is undertaking to qualify as a Competent Person as defined in the JORC Code, 2012 edition. Mr Sharma approves and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Exploration Results has been compiled by Mr Atmavireshwar Sthapak who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Sthapak is an Executive Director of Alara Resources Limited. Mr Sthapak has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code).” Mr Sthapak consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

For further information, please contact:

Justin Richard T | +61 8 9481 0389 Managing Director E | jrichard@alararesources.com Elizabeth Hunt T | +61 8 9481 0389 Company Secretary E | cosec@alararesources.com

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ASX Code | AUQ

Alara Resources Limited A.B.N. 27 122 892 719 Level 11, 216 St Georges Tce Perth WA 6000, Australia GPO Box 2517 Perth WA 6831

Telephone | +61 8 9481 0389 Facsimile | +61 8 9463 6103 Web | www.alararesources.com Email | info@alararesources.com

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About Alara Resources

Alara Resources Limited (ASX: AUQ) is an Australian minerals exploration company with a portfolio of projects in Saudi Arabia and Oman. Alara has completed a Definitive Feasibility Study on the Khnaiguiyah Zinc-Copper Project in Saudi Arabia, an Advanced Scoping Study on the Daris and Al Hadeetha Copper-Gold Projects in Oman and a Feasibility Study for the Al Hadeetha Project, Washihi deposit. The Company is transitioning to establish itself as a base and precious metals mine development and production company. For more information, please visit: www.alararesources.com

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ASX Code | AUQ