ALARA RESOURCES LIMITED — Director's Dealing 2008

Aug 14, 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	HEM SHANKER MADAN
Date of last notice	20 December 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	Direct
Nature of indirect interest	MR HEM SHANKER MADAN &		MR HEM SHANKER
(including registered holder)	MRS ANUPAM SHOBHA		MADAN
Note: Provide details of the circumstances	MADAN <THE AS AND HS
giving rise to the relevant interest.	MADAN S/F A/C>
Class	Ordinary	Options (with	Unlisted Director’s
	fully paid	exercise price of	Options
	shares	25 cents and	(with exercise price
		expiring on 30	of 55 cents and
		June 2009)	expiring on 26 July
			2012)
Date of change
	-	-
No. of securities held prior tochange	278,375	138,736	8,800,000
Number acquired
	-	-	-
Number disposed	-	-	8,800,000
Value/ConsiderationNote: If consideration is non-cash,provide details and estimated valuation	-	-	Pursuant to deed ofcancellation between
			the Company and Mr
			Madan dated 15
			August 2008
No. of securities held afterchange	278,375	138,736	-
Nature of changeExample: on-market trade, off-markettrade, exercise of options, issue of	-	-	Pursuant to deed ofcancellation between
securities under dividend reinvestment			the Company and Mr
plan, participation in buy-back			Madan dated 15
			August 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	Detail of contract	Not Applicable	Not Applicable
	Nature of interest		Not Applicable
	Name of registere	d holder	Not Applicable
	(if issued securiti	es)
	Date of change		Not Applicable
	No. and class of s	ecurities to which	Not Applicable
	interest related prNote: Details are only re	ior to changequired for a contract in
	relation to which the inte	rest has changed
	Interest acquired		Not Applicable
	Interest disposed		Not Applicable
	Value/Considerati	on	Not Applicable
	Note: If consideration isd titd lti	non-cash, provide details
	an an esmae vaua	n
	Interest after chan	ge	Not Applicable

Signature of Director: �---------------------------------------------------------Date: 15 August 2008 Shanker Madan

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

Appendix 3Y Page 2