ALARA RESOURCES LIMITED — Capital/Financing Update 2018

May 31, 2018

Alara Resources Limited A.B.N. 27 122 892 719 Suite 1.02, 110 Erindale Road, Balcatta WA 6021, Australia

Telephone | +61 8 9240 4211 Facsimile | +968 2449 2491 Web | www.alararesources.com Email | cosec@alararesources.com

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PO Box 963, Balcatta WA 6914

ASX/MEDIA RELEASE Friday, 1 June 2018

OMAN PROJECT UPDATE

PERTH: Alara Resources Limited (ASX: AUQ) ( Alara or Company ) provides an update on the Al Hadeetha Copper Project in Oman (the Project ).

Work at the new core yard and storage facility near the site is now complete and a property lease with the landowner has been executed.

Alara has arranged to move its Muscat office to the newly expanded Al Naba office complex in Ghala Industrial Estate. This move will enable Alara to work in close proximity to its JV partner (Founder and Chairman the Al Naba Group) and enhance collaboration on the Project.

Formal presentation of the mining licence is expected later in June. Legal formalities in respect to the licence are complete and the Company is working to finalise Project-related contracts, including EPC, PPP for water treatment plant and pipeline plus mining and auxiliary contracts.

As previously reported, the Company has received Letters of Intent from reputable financial institutions in respect to Project finance. Preferred lenders have now been shortlisted and lending terms are being finalised.

In light of copper price increases over the past 16 months, the Company plans to issue updated financial projections for the Project later this month.

For further information, please contact:

Justin Richard T | +968 2449 1162 Managing Director E | jrichard@alararesources.com Stephen Gethin T | +61 8 9240 4211 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 Washihi, Mullaq and Al Ajal exploration licences in Oman and a Feasibility Study for the Al Hadeetha Copper Gold Project, Washihi ore reserve. 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