ALARA RESOURCES LIMITED — Director's Dealing 2007

Oct 11, 2007

Rule 3.19A.2

Appendix 3Y

Change of Director’s Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 30/9/2001.

Name of entity	ALARA URANIUMLIMITED (AUQ)
ABN	27 122 892 719

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	HEM SHANKER MADAN
Date of last notice	24 May 2007

Part 1 - Change of director’s relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Direct or indirect interest	Direct / Indirect	Direct / Indirect
Nature of indirect interest(including registered holder)Note: Provide details of the circumstances givingrise to the relevant interest.	MR HEM SHANKER MADAN &MRS ANUPAM SHOBHA MADAN<THE AS AND HS MADAN S/F A/C>
Class	Ordinary fully paidshares	Options (with exerciseprice of 25 cents andexpiring on 30 June2009)
Date of change	-	5 October 2007
No. of securities held prior to change	184,983	-
Number acquired	-	138,736
Number disposed	-	-
Value/ConsiderationNote: If consideration is non-cash, provide detailsand estimated valuation	-	$1,387.36
No. of securities held after change	184,983	138,736
Nature of changeExample: on-market trade, off-market trade,exercise of options, issue of securities underdividend reinvestment plan, participation in buy-back	-	Subscription and issueunder the Company’sOptions Prospectus dated3 September 2007

ALARA URANIUMLIMITED A.B.N. 27 122 892 719

Appendix 3Y Change of Director’s Interest Notice

Part 2 – Change of director’s interests in contracts

Detail of contract	Not Applicable
Nature of interest	Not Applicable
Name of registered holder(if issued securities)	Not Applicable
Date of change	Not Applicable
No. and class of securities to whichinterest related prior to changeNote: Details are only required for a contract inrelation to which the interest has changed	Not Applicable
Interest acquired	Not Applicable
Interest disposed	Not Applicable
Value/ConsiderationNote: If consideration is non-cash, provide detailsand an estimated valuation	Not Applicable
Interest after change	Not Applicable

Signature of Director: �---------------------------------------------------------Date: 11 October 2007 Shanker Madan

• See chapter 19 for defined terms. 30/9/2001

Appendix 3Y Page 2