ALARA RESOURCES LIMITED — Director's Dealing 2008

Sep 23, 2008

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	JOHN FRANCIS STEPHENSON
Date of last notice	15 August 2008

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	Direct
Nature of indirect interest	Securities registered in the name			John Francis
(including registered holder)	of:			Stephenson
Note: Provide details of the circumstancesgiving rise to the relevant interest.	John Francis Stephenson &Susan Margaret Franklin
	<Stephenson Franklin FMY A/C>
Class	Ordinary		Listed Options	Unlisted Director’s
	fully paid		(with exercise	Options
	shares		price of 25 cents	(with exercise price
			and expiring on	of 35 cents and
			30 June 2009)	expiring on 16
				September 2013)
Date of change		-	-	17 September 2008
No. of securities held prior tochange	217,072		135,000	-
Number acquired		-	-	900,000
Number disposed
		-	-	-
Value/ConsiderationNote: If consideration is non-cash,		-	-	Nil
provide details and estimated valuation
No. of securities held afterchange	217,072		135,000	900,000
Nature of changeExample: on-market trade, off-markettrade, exercise of options, issue of		-	-	Issue of unlisteddirectors’ options
securities under dividend reinvestment				pursuant to
plan, participation in buy-back				shareholder approval
				on 17 September 2008

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	Not Applicable
(if issued securities)
Date of change	Not Applicable
No. and class of securities to which	Not Applicable
interest related prior to change
Note: Details are only required for a contract in
relation to which the interest has changed
Interest acquired	Not Applicable
Interest disposed	Not Applicable
Value/Consideration	Not Applicable
Note: If consideration is non-cash, provide details
and an estimated valuation
Interest after change	Not Applicable

Signature of Director: �---------------------------------------------------------Date: 24 September 2008 John Stephenson

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

Appendix 3Y Page 2