ALARA RESOURCES LIMITED — Capital/Financing Update 2021

Dec 20, 2021

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

PO Box 963, Balcatta WA 6914

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ASX/MEDIA RELEASE

21 December 2021

ALARA RESOURCES ACCELERATES CONSTRUCTION AND - PROCUREMENT AT OMAN COPPER GOLD PROJECT

Highlights

• Alara continues to make significant progress at its joint venture copper-gold project in Oman

• Engineering and procurement continue to ramp up, with 63% of engineering work completed and a number of major equipment items on order

• Accommodation village construction is nearing completion and will be occupied by January 2022

• Alara remains on track to complete the project by November 2022

Perth, Australia: Alara Resources Limited (ASX: AUQ) (“ Alara ” or “the Company ”) a base and precious metals explorer and developer with projects in Oman, is pleased to provide an update on the accelerated progress of construction and procurement activities at the Al Hadeetha at the Washhi Majaza Copper-Gold Project. Alara owns a 51 per cent equity interest in the joint venture developing the project.

Project engineering ramps up

As the procurement order placements are advancing, the progress of detailed engineering is also meeting the expected schedule at an accelerated pace. During this month, planned engineering was progressed rapidly by Debisikha Associates and Progesys, with 63% of planned detailed engineering work completed (refer figure 1).

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Figure 1: Project Engineering progress

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ASX Code | AUQ

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Procurement

Since the previous update, Al Hadeetha Resources LLC ( AHRL ) continued with drawdown on finance, using the capital for the following purchase orders and contracts. Total committed cumulative Capex stands at US$23.5 million in December 2021. The table below provides details of equipment already ordered (refer figure 2).

№	Package/Equipment details	Supplier/Contractor	Supplier/Contractor
1	Ball Mill, SAG Mill, Crusher	CITIC	China
2	Rock Breaker	Metso-OT	Finland
3	Apron Feeder	L&T	India
4	Pan Feeders	Metso-OT	India
5	Magnetic Separators	Electro Zavod	India
6	Accommodation Cabins Refurbished	Al Tasnim	Oman
7	Accommodation Camp Construction	Al Naba Infrastructure	Oman
8	New Cabins - Dining, Offices etc.	Al Rehwan	Oman
9	Fencing	Al Naba Infrastructure	Oman
10	Conveyors	Al Tasnim	Oman
11	Belt Weigher and Vibrating Screens	Schenck	India
12	Hydrocyclones	Weir	UAE
13	Conveyor Safety Switches	Smart SAA	India
14	Construction of Access Road	C&C	Oman
15	Pressure Filters	Matec	Italy
16	Regrinding Mill	Metso Outotec	USA
17	Electrical Packages - Transformers, Panels,Motors, Telecom	ABB	India
18	Dust Collector	Stratgem Projects	India
19	Power lines	ONEIC	Oman
20	Agitator	Afromix	SA
21	Sampling and Analyzing System	Metso Outotec	USA
22	Air Compressor	Bin Salim	Oman
23	Froth, Slurry and Sump Pumps	Metso Outotec	Turkey
24	Flotation Cells	Innnovator	Poland
25	Air Blower	Continental Industrie	France
26	Plant Control System	CAS	India
27a	Workshop – Material (Prefab Building)	Kirby	Kuwait
27b	Workshop – Civil and MEP Design	DSA	India
27c	Workshop – Erection	Emmar	Oman
28	Cooling Tower	BEC	Oman

Figure 2: Equipment ordered

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ASX Code | AUQ

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Site work progress – Camp construction

Construction of accommodation village is nearing completion. Catering and facility management contracts are also being awarded to make the camp liveable by mid-January 2022.

The pictures below show accommodation camp construction progress.

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Picture 1: Accommodation village nearing completion.

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Picture 2: Accommodation village close-up

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ASX Code | AUQ

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Picture 3: Dining area ground slab casting

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Picture 4: AHRL CEO Avigyan Bera finalizing power line route to project

Alara Managing Director Atmavireshwar Sthapak said: “ As we approach the end of 2021, we are pleased to report that progress at the Al Wash-hi Majaza Copper-Gold Project is continuing to accelerate. With the accommodation village almost complete, attention will turn to the construction of a world-class, copper-gold mining-processing facility. We are very excited about the work we have planned for 2022 and look forward to updating shareholders on the achievement of further key project development milestones. ”

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ASX Code | AUQ

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ENDS

This announcement is authorised by:

Atmavireshwar Sthapak T 1 | +968 2449 1162 Managing Director E | avsthapak@alararesources.com Dinesh Aggarwal T | +61 8 9240 4211 Company Secretary E | cosec@alararesources.com Media enquiries Julia Maguire T | +61 2 8999 3699 The Capital Network E | julia@thecapitalnetwork.com.au

About Alara Resources

Alara Resources Limited (ASX: AUQ) is an Australian-based precious and base metals explorer and developer, with projects in Oman and Saudi Arabia.

Alara’s active projects in Oman are the Al Wash-hi Majaza Copper-Gold mining licence and Mullaq, Al Ajal exploration licences under the Al Hadeetha JV and the Block 7 exploration licence under the Daris JV. Alara maintains an interest in the Khnaiguiyah Zinc-Copper project in Saudi Arabia, with a Feasibility Study completed endeavours to secure a mining licence re-issue underway.

Alara is currently focused on developing the Al Wash-hi Majaza Copper-Gold project in Oman, where it is in the process of constructing copper-gold mining and processing facilities. The Company is also continuing exploration activities at its other Oman projects.

Alara’s mission is to become a mid-tier minerals producer which will deliver maximum shareholder value through profitable growth driven by low-cost and sustainable operations.

To learn more, please visit: www.alararesources.com

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ASX Code | AUQ