ALARA RESOURCES LIMITED — Capital/Financing Update 2018

Mar 18, 2018

Alara Resources Limited A.B.N. 27 122 892 719 Level 11, 216 St Georges Tce, Perth WA 6000, Australia PO Box 1227 West Perth WA 6872

Telephone | +61 8 9322 3383 Facsimile | +968 2449 2491 Web | www.alararesources.com Email | cosec@alararesources.com

==> picture [121 x 58] intentionally omitted <==

ASX/MEDIA RELEASE Monday, 19 March 2018

JOINT VENTURE WITH SOUTH WEST PINNACLE EXPLORATION

PERTH: Alara Resources Limited (ASX: AUQ) ( Alara or Company ) has executed a Heads of Agreement with South West Pinnacle Exploration Limited ( SWPE ) to form a new joint venture providing drilling and mineral exploration services in Oman.

Summary

• Alara Oman Operations Pty Ltd (a wholly owned subsidiary of Alara) to enter a joint venture with SWPE to focus on Oman’s burgeoning mineral exploration sector.

• Alara and SWPE to hold equal shares in the JV entity.

• Final documents and related transactions are subject to regulatory requirements of Australia, India and Oman.

Alara and South West Pinnacle Exploration to team up in Oman

Alara and SWPE started working together in Oman in 2012. This business relationship continued to develop to the point where the two companies have now decided to join forces via a joint venture in Oman. The parties have signed a Heads of Agreement which provides for the new joint venture to operate through an existing Alara subsidiary (Alara Resources LLC[1] ), with Alara and SWPE being equal shareholders.

The joint venture will engage in drilling, exploration and mine development activities, and offer these services to other mining / exploration companies in Oman and the GCC, including Alara’s other joint ventures (i.e. Al Hadeetha Resources, Daris Resources and Awtad Resources), which currently hold five exploration licences covering >1100sqkm.

SWPE, which recently Iisted on the National Stock Exchange of India, has been operating successfully in the field of drilling and exploration services since 2007. Today SWPE has a fleet of 37 coring, RC & DTH rigs, and in-house expertise to offer a range of geological services.

Alara and SWPE hold a shared view on the future of mining in Oman and are keen to start working together at a time when the Sultanate’s mining sector is poised to take off.

1 Alara Resources LLC (‘ARL’) is a limited liability Omani company owned 70% by Alara Oman Operations Pty Ltd and 30% by a local partner. ARL does not currently hold any mining or exploration licences in Oman and is separate from Alara’s other JV entities in Oman.

==> picture [56 x 56] intentionally omitted <==

ASX Code | AUQ

Alara Resources Limited Telephone | +61 8 9322 3383 A.B.N. 27 122 892 719 Facsimile | +968 2449 2491 Level 11, 216 St Georges Tce, Web | www.alararesources.com Perth WA 6000, Australia Email | cosec@alararesources.com PO Box 1227 West Perth WA 6872

==> picture [121 x 58] intentionally omitted <==

It is noted that Mr Vikas Jain is a director and shareholder of both Alara and SWPE. Any transaction involving the two companies will be subject to relevant provisions of the Corporations Act and ASX Listing Rules.

For further information, please contact:

Justin Richard T | +968 2449 1162 Managing Director E | jrichard@alararesources.com Ian Gregory T | +61 8 9322 3383 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.

==> picture [56 x 56] intentionally omitted <==

ASX Code | AUQ