ALARA RESOURCES LIMITED — Interim / Quarterly Report 2021

Oct 28, 2021

Quarterly Activities Report September Quarter 2021

ASX Code: AUQ

DIRECTORS

Stephen Gethin Non-Executive Chairman Atmavireshwar Sthapak Managing Director Vikas Jain Non-Executive Director Sanjeev Kumar Non-Executive Director

COMPANY SECRETARY Dinesh Aggarwal CHIEF FINANCIAL OFFICER Dinesh Aggarwal

30 September 2021

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 its Quarterly Activities Report for the quarter ended 30 September 2021 (Q1 FY21) along with the following financial and operational update.

Key Highlights

Al Wash-hi – Majaza Copper-Gold Joint Venture (JV) Project:

• ➢ Alara and its partners further progressed the development of its Omanbased Al Wash-hi – Majaza Copper-Gold Project over the September 2021 quarter.

• ➢ Project construction commenced at Al Wash-hi – Majaza during the reporting period which includes construction of the mining accommodation camp, which is partially completed.

• ➢ Construction of the Al Wash-hi – Majaza Copper-Gold Project is scheduled for completion by late 2022.

• ➢ A number of equipment and construction purchase orders for the Al Wash-hi – Majaza Copper-Gold Project were placed in the quarter, drawing from the facility from Sohar International Bank ( SIB ).

• ➢ Existing Definitive Feasibility Study metrics for the Al Wash-hi – Majaza Project are now enhanced by higher current copper prices.

Other Projects:

CONTACT DETAILS Suite 1.02, 110 Erindale Road, Balcatta WA 6021, Australia

PO Box 963 Balcatta WA 6914

Telephone +61 8 9240 4211 Facsimile +968 2449 2491 www.alararesources.com ABN: 27 122 892 719

• ➢ Daris Copper-Gold Project (Oman): A petition supporting the Daris east mining licence application is now being reviewed by the Ministry of Energy and Minerals in Oman.

• ➢ Awtad Copper-Gold Project (Oman): Detailed work plans have been submitted to the Ministry of Energy and Minerals for renewal of the exploration licence, which is currently pending.

• ➢ Khnaiguiyah Zinc-Copper Project (Saudi Arabia): An auction for the re-issue of the mining licence for this project is expected to be held in Q2 2022. Alara funded and continues to hold the only bankable feasibility study ( BFS ) for this project.

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Quarterly Activities Report September Quarter 2021

ASX Code: AUQ

DIRECTORS

Stephen Gethin Non-Executive Chairman Atmavireshwar Sthapak Managing Director Vikas Jain Non-Executive Director Sanjeev Kumar Non-Executive Director

COMPANY SECRETARY Dinesh Aggarwal CHIEF FINANCIAL OFFICER Dinesh Aggarwal

Alara Resources Managing Director Atmavireshwar Sthapak said: “We

are pleased with the progress made developing the Al Wash-hi – Majaza Copper-Gold Joint Venture (JV) Project over the September 2021 quarter. Some parts of the Project, including the mining accommodation camp, are already partially completed, while the Project remains on track for full completion midway through the current quarter. As an added bonus, global copper prices have continued to climb, meaning the economics of the Project portrayed in the existing DFS are now quite conservative. While Al Wash-hi – Majaza has been our focus, we have also made progress in our other projects as well.”

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CONTACT DETAILS Suite 1.02, 110 Erindale Road, Balcatta WA 6021, Australia

PO Box 963 Balcatta WA 6914

Telephone +61 8 9240 4211 Facsimile +968 2449 2491 www.alararesources.com ABN: 27 122 892 719

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 The Capital Network

T | +61 2 8999 3699 E | julia@thecapitalnetwork.com.au

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

Oman Activity Report

Project Developments

The Wash-hi – Majaza Copper-Gold Project consists of one Mining Licence (Al Wash-hi – Majaza) and three Exploration Licenses (Al Wash-hi – Majaza, Mullaq and Al Ajal).

AHRL Oman Project Construction Update

- Al Hadeetha Copper Gold Project

Oman

(Alara – 51%: Al Hadeetha Investments LLC – 30%; Al Tasnim Infrastructure Services LLC 19% ( AHR ))

Copper Project Construction Commencement

Alara further progressed the development of the Al Wash-hi – Majaza Copper-Gold Joint Venture (JV) Project (‘ the Project ’), located in the Sultanate of Oman, over the September 2021 quarter. The Project is owned by Alara’s joint venture company Al Hadeetha Resources LLC (‘ AHRL ’) in which the Company holds a 51% interest.

Project construction commenced during the reporting period with some components of the construction phase already partially or fully completed. Project construction is scheduled for completion in November 2022. When operational, the Project will produce copper concentrate through a 1 MPTA plant[1] .

Mining accommodation camp

After receiving required construction approvals from the local municipality, the Project’s mine-site camp construction contractor mobilised its team and equipment at the Wash-hi – Majaza mine site accommodation village for surface levelling and the digging of foundation trenches.

Once complete, the accommodation village, the design of which is shown in Figure 1 below, will have the capacity to house 325 personnel on site during the Project’s construction. The camp comprises a range of facilities, including dining, prayer and recreation halls. Further details of the village are available in the Company’s ASX announcement dated August 5, 2021.

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1 Alara’s ASX Announcements dated 1 April 2016 (initial Definitive Feasibility Study results announcement), 24 January 2017 (DFS update), 28 June 2018 (NPV update) and 29 March and 7 April 2021 (NPV updates) contain the information required by ASX Listing Rule 5.16 regarding the stated production target. All material assumptions underpinning the production target as announced on those dates continue to apply and have not materially changed, except to the extent that a relevant assumption in an earlier announcement listed above has been updated by an assumption in a later of those announcements.

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

Figure 1: The Al Wash-hi – Majaza copper-gold JV Project mining accommodation camp

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Project access road

Preparations for construction of an access road connecting the project site with the State Highway also commenced in the September 2021 Quarter. Designs for the two (2) kilometre access road, shown in Figure 2 below, have recently been permitted by authorities. The road will provide a separate dedicated route to site, avoiding populated sections of the area. The road construction plan includes the building of a culvert over Wadi Andam.

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

Figure 2: The Al Wash-hi – Majaza copper-gold JV Project connecting access road

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Mining and processing infrastructure procurement

The Project is partially financed by an OMR 19m (USD 49.22m; AUD 65.56m) loan facility from Sohar International Bank (‘ the Facility ’). AHRL commenced draw-down on the Facility during the reporting period, placing a number of equipment and construction purchase orders, itemised in Table 1 over the page, during September 2021. Procurement contracts were awarded, contractually committing a total capex of USD 17.8m (OMR 6.83m; AUD 23.71m) to date.

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

Table 1: Recent purchase orders for the Project

№	Package/Equipment details	Supply from
1	Ball Mill, SAG Mill, Crusher	China
2	Rock Breaker	Finland
3	Apron Feeder	India
4	Pan Feeders	India
5	Magnetic Separators	India
6	Accommodation Cabins Refurbished	Oman
7	Accommodation Camp Construction	Oman
8	New Cabins - Dining, Offices etc.	Oman
9	Fencing	Oman
10	Conveyors	Oman
11	Belt Weigher and Vibrating Screens	India
12	Hydro cyclones	UAE
13	Conveyor safety switches	India
14	Construction of Access Road	Oman
15	Pressure Filters	Italy
16	Regrinding Mill	USA
17	Electrical Packages - Transformers, Panels, Motors, Telecom	India

Definitive Feasibility Study metrics enhanced by now higher copper price

Definitive Feasibility Study (DFS) financial modelling for the Al Wash-hi – Majaza copper-gold JV Project was revised earlier in the year[2] to take account of the big jump seen in global copper prices since the prior revision in 2018. Revised DFS projected returns, based on a range of copper price scenarios as at 29 March 2021 are set out in Table 2 below. As a comparison, the LME spot copper price on 23 September 2021 was USD $9,252 per tonne. Global copper prices have increased since the end of the September 2021 quarter, with the LME spot copper price sitting around USD $10,555 per tonne in mid-October.

Table 2 lists the key project parameters for the Project’s revised DFS

Table 2: Copper price scenario analysis

Parameter			Value
Copper Price (USD/tonne)	7,000	7,500	8,000	8,500	9,000	9,500
Revenue (USD m)	569	604	639	674	709	743
EBITDA (USD m)	208	241	273	306	338	370
Project NPV (USD m)	54	71	88	104	121	137
Project IRR (%)	24	29	33	36	40	43

2 See Alara’s ASX announcements dated 29 March and 7 April 2021. Alara’s ASX Announcements dated 1 April 2016 (initial Definitive Feasibility Study results announcement), 24 January 2017 (DFS update), 28 June 2018 (NPV update) and 29 March and 7 April 2021 (NPV updates) contain the assumptions and other information required by ASX Listing Rule 5.17 regarding the forecast financial information in this section of this Report. All material assumptions underpinning the forecast financial information as announced on those dates continue to apply and have not materially changed, except to the extent that a relevant assumption in an earlier announcement listed above has been updated by an assumption in a later of those announcements in that list.

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

Table 3: Key project parameters for the Project’s revised DFS

Parameter	Fundamentals
Total pre-production capex	USD 60m (including EPC, Project Management, STP & pipeline,
	power, road, and contingency)
Mining method	Open pit, 10.3 years
Project construction	15 months
First production	Q4 calendar 2022
Final production	2032
Processing rate	1 Mtpa
Average annual concentrate	35,000 (wmt)
production
Total tonnes copper metal	79,297 (t)
production
Total gold ounces	21,825 (oz)
Unit operating costs	USD 31.2/t of processed material

Project Engineering and Construction

Progesys, as Project Management Consultant ( PMC ), is overseeing and directing the engineering, procurement and construction for the Project. Debisikha Associates, India ( Debisikha ) is responsible for providing various services to the Project, including:

• Completion of front-end engineering design ( FEED ) and preparation of technical specifications for all bought-out items.

• Completion of detailed engineering for plant and infrastructure facilities (excluding geotechnical studies).

• Preparation of technical bid documents for the onsite construction work.

• Expediting the vendor manufacturing process and delivery schedule.

• Inspection and co-ordination of any items to be sourced from India.

Debisikha is an experienced consulting engineering company, which has worked on various EPC projects in India, Europe and the USA in the field of mineral processing and base metal mining. The group has been engaged under a fixed-price contract with a monthly payment schedule, which allows for resource loading throughout the project development schedule.

Water Supply

Around 1,200m³ of process water per day will be supplied by tankers sourced from sewage water treatment plants at Mudhaibi and Nizwa. An 18,000m³ water storage reservoir will be constructed on site. Potable water will also be utilised, which will be sourced from bores on site and treated appropriately. Project water supply requirements have been reduced from the level specified in the DFS by a subsequent decision to adopt a dry tailings system.

Power supply

The power supply will be sourced from two feeders from Omani electricity company MZEC, which are located approximately 2 km from the project site. A local contractor has been appointed to design, supply and construct overhead power lines and the primary substation at the Project site.

Mining Contractor

AHRL has already entered into a contract with Alara Resources LLC (ARL) for the latter group to perform mining services for AHRL over ten years at a cost of approximately USD 126m (AUD 167.83m).

Alara Resources LLC (ARL)

ARL has two drill rigs and associated accessories and is seeking mineral drilling contract work. Alara Resources LLC (ARL). ARL with its drilling rigs continues to support exploration programs of JV companies and also submitting tenders for drilling services to other mining companies in Oman. Mineral exploration activity in Oman was negatively impacted by the pandemic. As the vaccinated percentage of the local population rises, activity in this sector is expected to ramp up. ARL is

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

targeting a number of drilling contracts which are becoming available over the coming months. ARL’s first mining contract is with AHRL, as detailed above.

Mineral Tenements

The current status of all mineral tenements and applications for the Al Hadeetha Project are detailed in Table 4, below.

Table 4: Status of mineral tenements and applications across the Al Hadeetha Project

Licence	Licence	Alara JV		Exploration Licence	Exploration Licence		Mining Licence within EL	Mining Licence within EL	Mining Licence within EL
Name	Owner	Interest	Area	Date of Grant	Date of Expiry	Status	Area	Date of Application	Status
Washihi	AHRL	51%	39km2	Jan 2008	Nov 2016	Active*	3km2	2013	Active
Majaza ML
10003075.
Mullaq	AHRL	51%	41km2	Oct 2009	Nov 2016	Active*	1km2	Jan 2013	Pending
Al Ajal	AHRL	51%	25km2	Jan 2008	Nov 2016	Active*	1.5km2	Jan 2013	Pending

*Pursuant to Ministerial Decree 38/2013. This Decree provides that an exploration licence ends when its duration ends, unless the licensee has submitted an application for a mining licence. In that case, the period for the exploration licence is extended until the date that a decision is made on the mining licence application.

- Daris Copper Gold Project

Oman

(Alara – 50% with option to increase to 70%: Al Tamman Trading Establishment LLC – 50%, of Daris Resources LLC (DRL))

The Daris project comprises two high-grade copper deposits within the 587km² exploration licence, which includes two mining licence applications covering 4.5km². This project fits well with Alara’s preferred “hub and spoke” model, which provides for processing of Daris ore at the Wash-hi – Majaza copper concentration plant to be built by AHRL 100km to the south.

The Daris East Mining Licence application, which covers an area that includes measured, indicated and inferred JORC copper resources[3] , was opposed by the Ministry of Housing due to its proximity to recently allotted land. Review of a petition supporting the application lodged by Daris is now underway at the Ministry of Energy and Minerals.

The Daris 3A5 Mining Licence application is progressing with the Government.

- Awtad Copper Gold Project

Oman

(Alara initially has a right to subscribe for 10% of this project, with a subsequent earn in up to 70%+, with existing local shareholders holding the balance of Awtad Copper LLC)

The Awtad Project comprises an area of approximately 497 km² (Block 8) and is located immediately adjacent to the Block 7 (Daris Copper-Gold Project). Alara has a right to an initial 10% interest (increasing to 50-70%+) in the concession owner, Awtad Copper LLC.

Exploration previously undertaken at this project includes:

• 86 line kilometres of airborne VTEM, 14 line kilometres of ground IP, 169 line kilometres of ground magnetics and 202 line kilometres of high-resolution ground magnetics.

• 76 RAB drill holes totalling 1,747m and 11 core drill holes totalling 299m.

• Drilling results (including some undertaken across the Al Mansur Prospect) were low grade in general and inconclusive.

3 The Company has disclosed full details of these resources to investors on various occasions in a form which complies with the 2012 edition of the JORC Code. See, for example, the Company’s 2019 Annual Report to shareholders, pp 14-45 and 72-73.

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

Previous exploration identified anomalies worthy of further exploration. The fact that prospective geological formations within the licence area are under cover of alluvial and aeolian deposits enhances the chances of further copper mineralisation.

Detailed work plans have been submitted to the Ministry of Energy and Minerals for renewal of the exploration licence, which currently remain pending.

Mineral Tenements

The current status of all mineral tenements and applications for the Daris and Awtad Projects are presented in Table 5 below.

Table 5: Status of mineral tenements and applications for the Daris and Awtad Projects

Block Name Licence Owner	Block Name Licence Owner	Alara JV Interest	Area	Exploration Licence Date of Grant Date of Expiry Status	Exploration Licence Date of Grant Date of Expiry Status	Exploration Licence Date of Grant Date of Expiry Status	Mining Licences within EL Area Date of Application Status	Mining Licences within EL Area Date of Application Status	Mining Licences within EL Area Date of Application Status
Block	Al Tamman	50%	587km2	Nov ’09	Feb	Active*	Daris	Resubmitted	Pending
7	Trading Est.	(earn in			2016		3A5 &	2018
	LLC	to 70%)					East
Block	Awtad	10%	597km	Nov ’09	Oct	Renewal	NA	NA	NA
8	Resources	(earn in	2		2013	pending
	LLC	to 70%)

*Pursuant to Ministerial Decree 38/2013. This Decree provides that an exploration licence ends when its duration ends, unless the licensee has submitted an application for a mining licence. In that case, the period for the exploration licence is extended until the date that a decision is made on the mining licence application.

- Khnaiguiyah Zinc Copper Project

Saudi Arabia

The Khnaiguiyah Project includes the development and operation of an open-cut zinc-copper mine and associated infrastructure over an approximate 13-year mine life. Alara has invested over USD 30m into this project, including over USD 23m (AUD 30.64m) to produce a definitive feasibility study with proved and probable JORC reserves of 26.1Mt at 3.3% Zn and 0.24% Cu and a base case project NPV of USD 172m at a zinc price of USD 2,315/t. The zinc price used in the BFS was considerably below the current zinc spot price of USD 3,042/t.

The mining license was cancelled in 2015, due to the impasse between project participants. An auction for the re-issue of the mining license is expected to be held in Q2 2022. Alara funded, and is now in the unique position of holding, the only bankable feasibility study (BFS) for this project. Alara is working with various parties in both the private and public sectors to prepare for the reissue of the license. Alara’s possession of the DFS puts the Company in a favourable position to participate in the future development of this project.

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

Oman Copper Consolidation

The Company is actively pursuing opportunities and discussions are underway for consolidation of copper projects involving the Daris and Block 8 licenses in Oman.

Alara Resources LLC (ARL)

Alara Resources LLC ( ARL ) has two drill rigs and associated accessories and is seeking mineral drilling contract work. ARL continues to support exploration programs of JV companies and also submitting tenders for drilling services to other mining companies in Oman.

Mineral exploration activities in Oman were negatively impacted by the pandemic. As the vaccinated percentage of the local population rises, activity in this sector is expected to increase. ARL is focused on reviewing a number of potential drilling contracts over the coming months.

Alara Operations LLC (AOL)

The Management Services Agreement between Al Hadeetha Resources LLC and Alara Resources LLC have now been transferred to Alara Operations LLC. The purpose of this transfer is to bring the Management Services Agreement back within the Alara consolidated entity.

Expenditure Summaries

Mining production and development

During the quarter, the consolidated entity incurred expenditure of $3,788,000 on mining production and development activities.

Mining exploration

During the quarter, the consolidated entity incurred expenditure of $NIL on mining exploration activities.

Related-Party Payments

Director’s remuneration

During the quarter, the consolidated entity made payments totalling $111,000 to related parties, as disclosed in item 6.1 in the Company’s Appendix 5B. These payments were for Directors’ remuneration. No other payment was made to any related party or the associate of a related party.

Expected Developments in the December 2021 Quarter

Expected developments in the current quarter include:

• ➢ Continued progress in the construction of Wash-hi – Majaza project engineering assets.

• ➢ Further efforts to gain the Mining Licence over Daris Resources LLC exploration licence and mineralisation within Block 7.

• ➢ Additional valuation of the status of, and possibilities to progress, the Khnaiguiyah Project in Saudi Arabia.

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

Tenement Status

Oman Copper-Gold Projects

Alara has joint venture interests in five copper-gold deposits located within five Exploration Licences in Oman extending over 1,200km[2] .

The Al Wash-hi – Majaza/Mullaq[4] prospects are located approximately 160km south-southwest of Muscat (the capital of Oman) and the Al Ajal Prospect is located about 65km southwest of the capital. The Daris Copper-Gold Project[5] is located approximately 150km west of Muscat. Both projects are located close to high-quality bitumen roads.

Wash-hi – Majaza Copper-Gold Project

The current status of all licences/applications for this project is presented in the table below:

Licence	Licence	Alara JV	Area	Date of	Status	Mining	Date	Status
Name	Owner	Interest		Grant		Area	Applied
Wash-hi –	Al Hadeetha	51%	39km2	Jan 2008	Active	3km2	2013	Active
Majaza ML	Resources
10003075.	LLC
Mullaq	Al Hadeetha	51%	41km2	Oct 2009	Active*	1km2	Jan 2013	Pending
	Resources
	LLC
Al Ajal	Al Hadeetha	51%	25km2	Jan 2008	Active*	1.5km2	Jan 2013	Pending
	Resources
	LLC

*Pursuant to Ministerial Decree 38/2013. This Decree provides that an exploration licence ends when its duration ends, unless the licensee has submitted an application for a mining licence. In that case, the period for the exploration licence is extended until the date that a decision is made on the mining licence application.

Daris and Awtad Copper-Gold Projects

The current status of all licences/applications for this project is presented in the table below:

Licence	Licence Owner	Alara JV	Area	Date of	Status	Mining	Date	Status
Name		Interest		Grant		Area	Applied
Block 7	Al Tamman Trading	50% (earn in to	587km2	Nov 2009	Active*	Daris 3A5	Resubmitted	Pending
	and Est. LLC	70%)				& East	2018
Block 8	Awtad Resources	10% (earn in to	597km2	Nov 2009	Renewal	NA	NA	NA
	LLC	70%)			pending

*Pursuant to Ministerial decree (38/2013) which declares that the exploration licence ends when its duration ends, unless the licensee has submitted an application for a mining licence, in which case the duration for the exploration licence extends until the date that a determination is made on the mining application.

Saudi Arabia - Khnaiguiyah Zinc-Copper Project

The Khnaiguiyah Zinc-Copper Project is located approximately 170km south-west of the Saudi Arabian capital city of Riyadh. The mining licence (held by a former JV partner) was cancelled in December 2015. Alara, as sole funder of the Definitive Feasibility Study, is poised to restart the project once the licence is re-issued and is working with relevant parties in both the private and public sectors to prepare for this.

A meeting with Deputy Vice Minister was held during the quarter. Alara had previously expressed its continued interests in developing Khnaiguiyah Zinc-Copper Project in the form of a letter. Discussions confirmed that the project is on priority list of the ministry, and it would come up for

4 Refer to Alara’s 8 December 2011 ASX Announcement: Project Acquisition - Al Ajal-Washi-hi-Mullaq Copper-Gold Project in Oman.

5 Refer to Alara’s 30 August 2010 ASX Announcement: Project Acquisition - Daris Copper Project in Oman.

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

auction in second quarter of 2022. Alara was invited by Hon’ble Minister for participation in the auction process.

Additional Tenement Information

Mining tenement disposals and acquisitions

The consolidated entity did not acquire or dispose of any interest in any mineral tenement during the quarter.

Farm-in and farm-out agreements

The consolidated entity did not enter or terminate any farm-in or farm-out agreement during the quarter.

The consolidated entity holds its percentage interests in the mineral tenements disclosed under the heading Daris and Awtad Copper-Gold Projects under farm-in agreements with the respective Licence Owners disclosed there.

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

Securities Information

As of 25 October 2021

Issued Securities

	Fully paid	Listed options	Unlisted options	Total
	shares
	quoted on
	ASX
	705,429,239	-	9,000,000
Total	705,429,239	-	9,000,000	714,429,239

4 million options were issued to Chairman Mr. Stephen Gethin on 3 December 2020. Each option is exerciseable over one fully paid, ordinary, share in the Company and has an exercise price of AUD 0.03 per share. The options expire on 1 July 2022.

5 million options were issued to Managing Director Mr. Atmavireshwar Sthapak on 3 December 2020. Each option is exerciseable over one fully paid, ordinary, share in the Company and has an exercise price of AUD 0.03 per share. The options vest upon the Company achieving the first production of saleable copper concentrate, provided this occurs by 31 March 2022. If the Company:

• does not achieve the first production of saleable copper concentrate, as determined by the Board, acting reasonably, by that date the options will not become exerciseable; or

• achieves the first production of saleable copper concentrate by that date but the Managing Director does not exercise any given option within one (1) year after the date on which that first production occurs, any options which have not been exercised will lapse at the end of the last day of that year.

Distribution of Fully Paid Shares

Spread of Holdings	Spread of Holdings	Spread of Holdings	Number of Holders	Number of Units	% of Total Issued
					Capital
1	-	1,000	861	286,053	0.041%
1,001	-	5,000	261	602,791	0.085%
5,001	-	10,000	123	1,030,444	0.146%
10,001	-	100,000	329	13,357,467	1.894%
100,001	-	and over	252	690,152,484	97.834%
Total			1,826	705,429,239	100%

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

Top 20 Shareholders

Rank	Shareholder	Shares Held	% Issued
			Capital
1.	Al Tasnim Infrastructure LLC	99,650,067	14.126
2.	Mr Vikas Malu	64,142,050	9.093
3.	Ms Meng	41,824,437	5.929
4.	Citicorp Nominees Pty Limited	38,637,601	5.477
5.	Mr Vikas Jain	37,745,930	5.351
6.	Al Hadeetha Investment Services LLC	31,500,000	4.465
7.	Metal Corners Holdings Co	31,012,217	4.396
8.	Mr Piyush Jain	24,199,437	3.430
9.	Mr Jay Hughes + Mrs Linda Hughes	20,600,000	2.920
10.	Whitechurch Developments Pty Ltd A/C>	20,575,550	2.917
11.	Mr Tyrone James Giese	17,456,189	2.475
12.	BNP Paribas Noms Pty Ltd DRP>	16,575,689	2.350
13.	Ferguson Superannuation Pty Ltd	12,790,543	1.813
14.	Mr Pradeep Kumar Goyal	11,781,549	1.670
15.	Mr Mohammed Saleh Alshaikh	11,347,387	1.609
16.	Mr Farrokh Jimmy Masani	10,422,687	1.477
17.	Mr Anthony Cullen + Mrs Sue Cullen Super Fund A/C>	9,758,544	1.383
18.	Mr Peter Kelvin Rodwell	9,422,858	1.336
19.	Mr Warren William Brown + Mrs Marilyn Helena Brown	8,664,286	1.228
20.	AUM Family Super Pty Ltd A/C>	6,055,725	0.858
Total		524,162,746	70.881%

Disclaimer

This report contains ‘forward-looking statements’ and ‘forward-looking information’, including statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, mineral resources, and studies. Often, but not always, forward-looking information can be identified by the use of words such as ‘plans’, ‘expects’, ‘is expected’, ‘is expecting’, ‘budget’, ‘scheduled’, ‘estimates’, ‘forecasts’, ‘intends’, ‘anticipates’, ‘believes’ or variations (including negative variations) of such words and phrases, or state that certain actions, events or results ‘may’, ‘could’, ‘would’, ‘might’, or ‘will’ be taken, occur or be achieved. Such information is based on assumptions and judgements of management regarding future events and results.

The purpose of forward-looking information is to provide readers with information about management’s expectations and plans. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Alara and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, changes in market conditions, future prices of gold and copper, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns.

Forward-looking information and statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. Alara believes that the assumptions and expectations reflected in such forward-looking statements and information are reasonable. Readers are cautioned that the foregoing list is not exhaustive of all factors and

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ALARA RESOURCES LIMITED SEPTEMBER 2021 – QUARTERLY ACTIVITIES REPORT

assumptions which may have been used. Alara does not undertake to update any forward-looking information or statements, except in accordance with applicable securities laws.

About Alara Resources

Alara Resources Limited (ASX: AUQ) is an Australian minerals exploration company with a portfolio of projects in the Middle East. Alara has completed Bankable Feasibility Studies for the Al Hadeetha Copper Project in Oman and the Khnaiguiyah Zinc-Copper Project in Saudi Arabia and an Advanced Scoping Study on the Daris Copper-Gold Project in Oman. In June 2018, Al Hadeetha Resources became the first international joint venture company to be awarded a copper mining licence in the Sultanate of Oman. The Company is now establishing itself a mine developer and producer of base and precious metals. For more information, please visit: www.alararesources.com.

==> picture [98 x 77] intentionally omitted <==

Alara of Kush is generally regarded as the founder of the Napatan royal dynasty by his Nubian successors. During his lengthy reign, King Alara was responsible for unifying the upper kingdom, with precious metals becoming an important part of its flourishing economy.

Image: Cartouche of Alara

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Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

ALARA RESOURCES LIMITED

ABN 27 122 892 719	Quarter ended (“current quarter”)	Quarter ended (“current quarter”)
	30 September 2021
Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- - (3,788) - (139) (193) - - - - - -	- - (3,788) - (139) (193) - - - - - -
	(4,120)	(4,120)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) investments (f) other non-current assets	- - (2) - - -	- - (2) - - -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 1

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - -	- - - - - - -
	(2)	(2)

3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - 3,539 - - - -	- - - 3,539 - - - -
	3,539	3,539

4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	4,242 (4,120) (2) 3,539	4,242 (4,120) (2) 3,539

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	18	18
	3,677	3,677
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (Petty Cash) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	3,676 - - 1	4,241 - - 1
	3,677	4,242
6. Payments to related parties of the entity and their associates		Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 111 6.2 Aggregate amount of payments to related parties and their associates included in item 2 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.		111

• 1) The amount in 6.1 is comprised of Directors’ salaries, fees and entitlements of A$110,504

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 3

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities– Al Hadeetha Investments LLC 2,773 759 Loan facilities – Sohar International Bank 68,240 3,538 7.2 Credit standby arrangements - 7.3 Other (please specify) - 7.4 Total financing facilities 71,013 4,297 7.5 Unused financing facilities available at quarter end 66,716 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	2,773	759
	68,240	3,538
		-
		-
	71,013	4,297
7.1.Pursuant to the Shareholders’ Agreement with Al Hadeetha Investments LLC (AHI), Al Hadeetha Resources LLC (AHR) (a controlled entity of Alara Resources Limited) executed a Loan Agreement of up to USD 2 million with AHI on 16 April 2017. As at 30th September 2021, the loan balance was OMR 189,948 (A$682,207). Under the Loan Agreement, interest accrues at a rate of LIBOR plus 2%. The loan is repayable (alongside the loan of OMR 5,137,875 (A$18,452,946) from Alara Resources Limited and its controlled entities, which has been eliminated on consolidation of these financial statements) from profits of AHR prior to any dividends being issued to the shareholders of AHR, or in the event that AHI ceases to be a shareholder of AHR. AHI and/or Alara Resources Limited may elect to convert all or part of the loan into equity in AHR. 7.2.The Company’s 51% owned joint-venture vehicle Al Hadeetha Resources LLC (AHRL) has accepted an offer from Sohar International Bank for finance of OMR 19 million (AUD 68.24 million). The profit rate for the Sohar International Bank Loan is 6.5% per annum for amounts drawn in OMR and 5.15% per annum for amounts drawn in USD, variable. The Sohar International Bank Loan has a term of 9 years and 9 months, including a moratorium period of 2 years and 9 months in which only Interest payable is applicable and the same has been paid on a monthly basis. This loan is secured by a legal mortgage over AHR’s assets including processing plant, land and buildings.
8. Estimated cash available for future operating activities		$A’000
8.1 Net cash from / (used in) operating activities (item 1.9) (4,120) 8.2 (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - 8.3 Total relevant outgoings (item 8.1 + item 8.2) (4,120) 8.4 Cash and cash equivalents at quarter end (item 4.6) 3,677 8.5 Unused finance facilities available at quarter end (item 7.5) 66,716 8.6 Total available funding (item 8.4 + item 8.5) 70,393 8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 17.09 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.		(4,120) - (4,120) 3,677 66,716
		70,393

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

• 8.8 If item 8.7 is less than 2 quarters, please provide answers to the following questions:

8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: Not applicable

8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: Not applicable

8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: Not applicable

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 29[th] October 2021

Authorised by: _____

Atmavireshwar Sthapak – Managing Director

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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