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ALARA RESOURCES LIMITED Capital/Financing Update 2016

Mar 17, 2016

64461_rns_2016-03-17_06a37269-9141-4427-a004-be9292a0ee26.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 6000, Australia GPO Box 2517 Perth WA 6831

Telephone | +61 8 9481 0389 Facsimile | +61 8 9463 6103 Web | www.alararesources.com Email | [email protected]

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ASX/MEDIA RELEASE

Friday, 18 March 2016

- AL HADEETHA PROJECT EXPLORATION LICENCE RENEWAL

Alara Resources Limited (ASX: AUQ) ( Alara ) provides this update on the Al Hadeetha Copper-Gold Project.

Further to the Half Year Report released this week, which identified the Al Hadeetha project licenses as ‘renewal pending’; Alara confirms the Public Authority for Mining in Oman has accepted the latest Al Hadeetha project reports and statutory fees for renewal of licences for one year.

The Al Hadeetha Copper-Gold Project currently[1] comprises three exploration licences, namely Washihi, Mullaq and Al Ajal, totalling ~105km². These licences are located approximately 60km West and 120km Southsouthwest of the capital Muscat (see Figure 1 below).

This helps clear the way for Alara to continue its exploration program in connection with the mining licence applications and Feasibility Study currently underway.

Figure 1 – Location of Al Hadeetha[2] Exploration Licences

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1 Three mining applications covering 3km² at Washihi, 1km² at Mullaq and 1.5km² at Al Ajal have also been filed. 2 Al Hadeetha Resources LLC is a limited liability company incorporated in the Sultanate of Oman. Shareholders in the company are Alara Oman Operations Pty Ltd (70%) a wholly owned subsidiary of Alara Resources Ltd and Al Hadeetha Investments LLC (related to the Al Naba Group of Companies).

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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

Telephone | +61 8 9481 0389 Facsimile | +61 8 9463 6103 Web | www.alararesources.com Email | [email protected]

GPO Box 2517 Perth WA 6831

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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 company with a portfolio of projects in Saudi Arabia and Oman. Alara has completed a Definitive Feasibility Study (DFS) on the Khnaiguiyah Zinc-Copper Project in Saudi Arabia, an Advanced Scoping Study on the Daris Project in Oman and commenced a Feasibility Study on the Al Hadeetha CopperGold Project in Oman. The Company is 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