ALARA RESOURCES LIMITED — Capital/Financing Update 2018

Feb 14, 2018

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

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ASX/MEDIA RELEASE

Thursday, 15 February 2018

PROJECT LICENCE UPDATE

PERTH: Alara Resources Limited (ASX: AUQ) ( Alara or Company ) has been issued an Economic Activities Licence for the Al Hadeetha Copper Gold Project in Oman (the ‘Project’).

Project Licence for Mining and Preparation of Copper Ores

Earlier this week, representatives from the Ministry of Commerce and Industry (‘MOCI’) and Ministry of Environment and Climate Affairs (‘MECA’) attended the Tanfeedh[1] office in Muscat to discuss licencing bottlenecks and the Invest Easy portal. Following the meeting, direct actions were taken resulting in:

1. MECA’s approval of copper mining activities at the Project being registered on the Invest Easy portal;

2. An Economic Activities Licence (the ‘Licence’) being issued to the JV Company (Al Hadeetha Resources LLC) in respect to mining of non-ferrous metal ores (including copper); and

3. The commercial registration of the JV Company being updated to include “mining and preparation of ores valued chiefly for selected non-ferrous metal content (including copper)” as a registered activity, whereas previously the activity description was followed by the words “licence pending”.

The Licence and commercial registration do not specify any further approval requirements (e.g. Ministry of Water). However, the Company will continue working with the Public Authority of Mining (‘PAM’) to ensure it complies with any further requirements (including a licence from PAM) and is now looking to finalise project financing terms (which were renewed with debt financiers last quarter) on the back of this important licencing milestone.

It is clear from local media reports and previous Company announcements, that Oman’s mining sector is being reignited as part of the country’s economic diversification strategy. Alara is at the forefront of these changes, and has embraced the opportunity of working hand in hand with government to ensure the framework and procedures being introduced can successfully accommodate Oman’s burgeoning mining sector.

1 The Omani government agency named National Programme for Enhancing Economic Diversification (aka ‘Tanfeedh’) has been created to ensure the Sultanate diversifies its economy by targeting five key industries identified as growth sectors, including mining.

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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 PO Box 1227 West Perth WA 6872

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

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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.

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ASX Code | AUQ