ALARA RESOURCES LIMITED — Capital/Financing Update 2017

Feb 26, 2017

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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ASX/MEDIA RELEASE

Monday, 27 February 2017

Oman Activities Update

Alara Resources Limited (ASX: AUQ) (Alara or Company) provides this update on the Al Hadeetha Copper Gold Project in Oman (the ‘Project’).

The Public Authority for Mining in Oman (‘PAMO’) has completed its review of the feasibility study and recommended licensing the Project to proceed.

PAMO and other relevant authorities met last week, to discuss the advancement of the Project and to expedite the issuance of the Project mining license. Here is more information about this meeting:

• Attendees included:

  • H.E. Eng. Hilal Al Busaidi, CEO, and senior representatives from PAMO;

  • The Director General, and senior representatives from Ministry of Environment and Climate Affairs;

  • Senior representatives from the Ministry of Tourism;

  • Sheikh Khalid Al Busaidi, Founder and Chairman of Al Naba Group and of Alara’s JV partner, Al Hadeetha Investments LLC;

  • Mr R. Chandrasekar, Head of Finance and Accounts, Al Naba;

  • Mr. Justin Richard, CEO, Alara; and

  • Mr. AV Sthapak, Technical Director, Alara.

• The meeting considered the Project’s socioeconomic and environmental impact on the surrounding community, including employment, proximity to housing and a small park area located to the East of the Project site.

• It was agreed Alara will promptly generate a park enhancement plan and submit it to the Ministry of Tourism.

• The meeting concluded with His Excellency emphasising his support for the Project and commitment to expediting the administrative processes to help ensure Oman capitalises on its opportunities within the mining sector.

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

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