ALARA RESOURCES LIMITED — Interim / Quarterly Report 2021

Aug 1, 2021

Quarterly Activities Report

June 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

30 June 2021

Summary

• ➢ Oman general update

COMPANY SECRETARY Dinesh Aggarwal

• ➢ AHRL Oman Project Execution Update

CHIEF FINANCIAL OFFICER Dinesh Aggarwal

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

For further information, please contact:

Atmavireshwar Sthapak T | +968 2449 1162 Managing Director E | avsthapak@alararesources.com

Dinesh Aggarwal T | +61 8 9240 4211 Company Secretary E | cosec@alararesources.com

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ALARA RESOURCES LIMITED JUNE 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).

General Oman Update

COVID-19 impact

As of 25 July 2021, Oman has reported 289,042 cases of COVID-19, 3,498 deaths and 263,752 recoveries. Sudden increase of cases and fatalities compelled authorities to reimpose travel restrictions, close of public and commercial venues and restrict public movement. The country was in total lockdown for the auspicious Eid Holidays.

Travel restrictions to seriously affected countries continue to apply, and institutional quarantine is compulsory for arriving passengers.

Limited Alara personnel were able to work from the Company’s offices, however this did not cause a major disruption to the Company’s activities.

Washi-hi – Majaza Project activity update

Additional land grant

The Omani Ministry of Housing ( MoH ) approved the grant of additional land around the Wash-hi – Majaza Mining Licence and granted permission to construct copper processing plant within the license area. Executed lease agreements with MoH provide access to 71,145 sq m of land within and adjacent to the 3 sq km Mining Licence area.

These approvals are required for the construction of facilities, such as the accommodation camp construction offices and other utility structures supporting the copper processing plant to be constructed at the project site. The land holding certificates also permit the establishment of communication towers and power substations required for project construction.

The diagram below shows the proposed layout of the project site:

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ALARA RESOURCES LIMITED JUNE 2021 – QUARTERLY ACTIVITIES REPORT

Project Engineering and Procurement

Cumulative project engineering progress to date is 52.8%, as broken down in more detail in the table below:

P S	Period Progress	Period Progress	Cumulative Progress	Cumulative Progress	SPI
rogress ummary	Planned	Earned	Planned	Earned
DSA – Engineering	4.6%	1.9%	96.2%	52.8%	0.5
DSA – Procurement	0.0%	9.4%	100%	72.2%	0.7
AHRL – Procurement	0.2%	0.5%	100%	37.6%	0.4

Engineering progress up to June 2021 was 52.8% vs 96.2% planned.

AHRL procurement progress, which covers commercial evaluation and award completions for the period, is 37.6% vs 100% planned, according to the approved baseline of 13 October 2020.

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Milestone Table – planned vs actual

ID	Milestone	Baseline	Forecast	Actual	Var
MS-1000	Project Start	17-Aug-20		12-Aug-20(A)
MS-1010	Contracts Award(Progesys & DSA)	17-Aug-20		15-Aug-20(A)
MS-1020	Start of Metallurgical test	17-Aug-20		28-Jul-20(A)
MS-1040	MET Test - Interim Report	14-Sep-20		11-Aug-20(A)
MS-1050	Procurement Packages for CR + Mill Areas complete	20-Oct-20		16-Oct-20(A)
MS-1080	PO for CR + Mill issued	08-Dec-20		15-Mar-21(A)
MS-1090	Final Report - Metallurgical test	21-Dec-20		09-Feb-21(A)
MS-1100	Industrial License obtained	17-Aug-20		04-Oct-20(A)
MS-1220	QC/QA Contracts Starting	23-Nov-20		04-Dec-20(A)
MS-1030	Detailed Engineering& Procurement complete	26-Nov-21	22-Jun-22		-208
MS-1060	DryTailings Permit - Construction	25-Jan-21	25-Nov-21		-304
MS-1070	FEED Complete	29-Jan-21	30-Sep-21		-244
MS-1120	Power Lines EPC Award	11-Mar-21	29-Oct-21		-232
MS-1130	Mine Commissioned	14-Dec-21	19-Sep-22		-279
MS-1140	Start Mining	15-Dec-21	20-Sep-22		-279
MS-1150	Reception of all Equipment complete	07-Dec-21	04-Jul- 22		-209
MS-1160	Water Supply& Power Line EPC Complete	14-Jan-22	19-Sep-22		-248
MS-1170	Cold Commissioningcomplete	01-Mar-22	07-Nov-22		-251
MS-1180	Hot Commissioningcomplete	15-Mar-22	05-Dec-22		-265
MS-1190	Project Complete & Start commercial Running	15-Mar-22	05-Dec-22		-265
MS-1200	MOH License	07-Dec-20	15-Jul-21		-220
MS-1210	Tailings Management Permit & Environmental License Update Complete	01-Feb-22	17-Feb-22		-16
MS-1230	Exception for Import Duties Complete		12-Jul-21
MS-2000-FN	Initial Bank Disbursement Approval		20-Jul-21*

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ALARA RESOURCES LIMITED JUNE 2021 – QUARTERLY ACTIVITIES REPORT

Critical Path

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Engineering Contract with DSA – Progress by Discipline

Diili	Rid		Code Number	Code Number		In review by PMC	DSA overdue
scpne	eceve	0	1	2	3
Mechanical	69	0	25	42	2	0	7
Process	211	0	59	123	27	2	32
Electrical	238	0	110	114	13	1	77
Instrumentation	65	0	32	26	7	0	6
Structural	52	3	17	31	0	1	35
Civil	38	2	12	12	12	0	46
Grand Total	673	5	255	348	61	47	203

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ALARA RESOURCES LIMITED JUNE 2021 – QUARTERLY ACTIVITIES REPORT

RFQ Dashboard – Summary of Procurement Actions in the reporting Quarter

RFQ issued – Jun 2021	Issued Date
PA6130 – Pre-Engineering Bldgs	22-06-2021
PJ5180 – UPS System & Battery Charger	10-06-2021
PK5160 – CCTV System	14-06-2021
New RFQ for Jul 2021	Forecast Date
PE5400 – Diesel Generator Package	15-07-2021
PJ3105 – Off-Line Instruments	27-07-2021
PJ3110 – On-Line Instruments	27-07-2021
PJ3150 – Junction Boxes & Erection	12-07-2021
CM0110 – Tanks Fabrication & Erection	15-07-2021
PM0330 – Cranes & Hoists	27-07-2021
PM0335 – Tower Crane	13-08-2021
PM0350 – Fire Protection System	15-07-2021
PM2285 – Radial Stacker Conveyor	19-07-2021
PM6360 – Laboratory Equipment & Items	13-08-2021

Comparative Statements

Stakeholder approvals have been received on supplier selection, price and all commercial terms and conditions in respect of the following project infrastructure modules.

Completed

1. Mill Package

2. Crusher Package

3. Magnetic Separators

4. Rock Breakers

5. Apron Feeders

6. Pan Feeders

7. Conveyor Package

8. Camp & Site Office Facilities

9. Vibrating Screens

10. Belt Weighers

11. Dust Collectors

12. Safety Witches

13. Weighbridge

14. Regrind Mill

15. Hydro cyclone

16. All Process Slurry Pumps

17. Road Works

18. Porta Cabins

19. Filters

20. Flotation Cells

21. Thickeners

22. Complete Electrical System

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ALARA RESOURCES LIMITED JUNE 2021 – QUARTERLY ACTIVITIES REPORT

Health, Safety and Environment

The Project Health, Safety and Environment ( HSE ) team, working with the Project Management Consultant ( PMC ) has commenced preparation of HSE documentation to support the safe construction of Project facilities.

Documents	Total Planned	Completed	In Progress
Manuals	1	0	1
Procedures	28	25	3
Policies	1	1	0
Forms	16	16	0
Risk Assessments	1	0	1
Checklists	19	19	0
Total Documents	66	61	5

Water Supply

The proposal received form Haya Water to supply water at a fixed rate. Haya has also indicated that any surplus available treated water will be available solely for the project.

Negotiations are underway with Haya, with support from ISFU and MOCI, to finalise the water supply contract, based on the following:

• Proposed upgrade of the Mudhaibi Sewage Treatment Plant,

• Fixing the price of water for 10 years.

Power Supply

Based on the consultants’ design and project power requirements, AHRL received tenders from approved/registered contractors. Due to higher-than-expected prices received in tenders, the AHRL team has initiated dialogue with the power supplier MZEC to determine ways to reduce power supply capex. It will not necessarily be possible to achieve significant cost savings on this item, however.

Road Connectivity

All approvals have been granted, including MoTC and ROP, and the project is ready for construction after contract award. The contractor has been asked to initiate site preparation works based on the LOI already issued.

SAP Implementation at AHRL

Finance, material management and PS module implementations have been completed.

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ALARA RESOURCES LIMITED JUNE 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)

ARL’s first mining contract is with Al Hadeetha Resources LLC, as detailed above. Tender proposals have been prepared and submitted to other prospective contractors.

ARL has submitted a tender to a major Omani industrial mineral company for an exploration drilling contract.

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 $307,000 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 $100,000 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.

Next Quarter

Expected developments in the next Quarter include:

• Continue with Wash-hi – Majaza project engineering and begin placing procurement orders for major equipment.

• Pursue grant of Mining Licence over Daris Resources LLC exploration licence and mineralisation within Block 7.

• Evaluate the status of, and possibilities to progress, the Khnaiguiyah Project in Saudi Arabia.

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] .

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ALARA RESOURCES LIMITED JUNE 2021 – QUARTERLY ACTIVITIES REPORT

The Al Wash-hi – Majaza/Mullaq[1] prospects are located approx. 160km south-southwest of Muscat (the capital of Oman) and the Al Ajal Prospect is located about 65 km southwest of the capital. The Daris Copper-Gold Project[2] is located approx. 150km west of Muscat. Both projects are located close to high-quality bitumen roads.

Al Hadeetha Copper-Gold Project

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

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

Daris and Awtad Copper-Gold Projects

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

Licence Name	Licence Owner	Alara JV	Exploration	Date of	Status	Mining	Date of	Status
		Interest	Area	Grant		Area	Application
Block 7	Al Tamman Trading and	50% (earn in	587km2	Nov 2009	Active*	Daris 3A5	Resubmitted	Pending
	Est. LLC	to 70%)				& East	2018
Block 8	Awtad Resources LLC	10% (earn in	597km2	Nov 2009	Renewal	NA	NA	NA
		to 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. Previously in a letter Alara expressed its continued interests in developing Khnaiguiyah Zinc-Copper Project in the country. Discussions confirmed that the project is on priority list of the ministry and it would come up for 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.

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

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

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ALARA RESOURCES LIMITED JUNE 2021 – QUARTERLY ACTIVITIES REPORT

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 JUNE 2021 – QUARTERLY ACTIVITIES REPORT

Securities Information

as of 28 July 2021

Issued Securities

	Quoted on ASX	Unlisted	Total
Fully paid ordinary shares	705,429,239	-	705,429,239
Total	705,429,239		705,429,239

Distribution of Fully Paid Shares

Spread of Holdings		Number of Units	% of Total Issued
	Number of Holders
			Capital
1 - 1,000	864	287,967	0.041%
1,001 - 5,000	260	601,480	0.085%
5,001 - 10,000	123	1,030,444	0.146%
10,001 - 100,000	324	12,946,809	1.835%
100,001 - and over	260	690,563,539	97.893%
Total	1,831	705,429,239	100%

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ALARA RESOURCES LIMITED JUNE 2021 – QUARTERLY ACTIVITIES REPORT

Top 20 Shareholders

Rank			% Issued
	Shareholder	Shares Held
			Capital
1.	Al Tasnim Infrastructure LLC	99,650,067	14.126
2.	Mr Vikas Malu	57,142,050	8.100
3.	Ms Meng	41,824,437	5.929
4.	Mr Vikas Jain	37,745,930	5.351
5.	Citicorp Nominees Pty Limited	35,958,891	5.097
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.	White church Developments Pty Ltd	20,575,550	2.917
11.	Mr Tyrone James Giese	17,456,189	2.475
12.	BNP Paribas Noms Pty Ltd	17,071,573	2.420
13.	Ferguson Superannuation Pty Ltd	12,600,000	1.786
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	9,649,544	1.368
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.	Mr Vikas Malu	7,000,000	0.992
Total		515,624,652	73.092%

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 assumptions

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ALARA RESOURCES LIMITED JUNE 2021 – QUARTERLY ACTIVITIES REPORT

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.

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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 Quarter ended (“current quarter”) 27 122 892 719 30 June 2021

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Consolidated statement of cash flows Current quarter Year to date
$A’000 (12 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers - 10
1.2 Payments for
- -
(a) exploration & evaluation
(b) development (307) (2,132)
- -
(c) production
(d) staff costs (45) (1,011)
(e) administration and corporate costs (275) (644)
1.3 Dividends received (see note 3) - -
1.4 Interest received 1 2
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 (626) (3,775)
activities
2. Cash flows from investing activities
2.1 Payments to acquire or for:
- -
(a) entities
- -
(b) tenements
(c) property, plant and equipment (7) (13)
- -
(d) exploration & evaluation
- -
(e) investments
(f) other non-current assets - -
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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

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Consolidated statement of cash flows Current quarter Year to date
$A’000 (12 months)
$A’000
2.2 Proceeds from the disposal of:
- -
(a) entities
- -
(b) tenements
- -
(c) property, plant and equipment
(d) investments 8 8
- -
(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 1 (5)
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities
-
(excluding convertible debt securities) 1,904
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 (11) (11)
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 (11) 1,893
activities
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of 5,845 7,675
period
4.2 Net cash from / (used in) operating (626) (3,775)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing activities 1 (5)
(item 2.6 above)
4.4 Net cash from / (used in) financing activities (11) 1,893
(item 3.10 above)
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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

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Consolidated statement of cash flows Current quarter Year to date
$A’000 (12 months)
$A’000
4.5 Effect of movement in exchange rates on 73 (506)
cash held
4.6 Cash and cash equivalents at end of 5,282 5,282
period
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 4,137 4,701
5.2 Call deposits 1,144 1,143
5.3 Bank overdrafts - -
5.4 Other (Petty Cash) 1 1
5.5 Cash and cash equivalents at end of 5,282 5,845
quarter (should equal item 4.6 above)
6. Payments to related parties of the entity and their Current quarter
associates $A'000
6.1 Aggregate amount of payments to related parties and their 100
associates included in item 1
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.
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1) The amount in 6.1 is comprised of Directors’ salaries, fees and entitlements of A$100,395

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

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7. Financing facilities Total facility Amount drawn at
Note: the term “facility’ includes all forms of financing amount at quarter quarter end
arrangements available to the entity.
end $A’000
Add notes as necessary for an understanding of the
$A’000
sources of finance available to the entity.
7.1 Loan facilities– Al Hadeetha Investments 2,664 759
LLC
Loan facilities – Bank Sohar 65,559
7.2 Credit standby arrangements -
7.3 Other (please specify) -
7.4 Total financing facilities 68,223 759
7.5 Unused financing facilities available at quarter end 67,464
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.
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 June 2021, the loan balance was OMR
188,360 (A$649,941). Under the Loan Agreement, interest accrues at a rate of LIBOR plus 2%. The
loan is repayable (alongside the loan of OMR 5,132,528 (A$17,709,892) 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. 7.2. The Company’s 51% owned joint-venture vehicle Al Hadeetha Resources LLC (AHRL) has
accepted an offer from Bank Sohar (Sohar) for finance of OMR 19 million (AUD 65.56 million). The
profit rate for the Sohar Loan is 6.5% per annum for amounts drawn in OMR and 5.15% per annum
for amounts drawn in USD, variable. The Sohar Loan has a term of 9 years and 9 months, including
a moratorium period in which no repayments are payable of 2 years and 9 months. This loan is
secured by a legal mortgage over AHR’s assets including processing plant, land and buildings.
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8. Estimated cash available for future operating activities $A’000
8.1 Net cash from / (used in) operating activities (item 1.9) (626)
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) (626)
8.4 Cash and cash equivalents at quarter end (item 4.6) 5,282
8.5 Unused finance facilities available at quarter end (item 7.5) 67,464
8.6 Total available funding (item 8.4 + item 8.5) 72,746
8.7 Estimated quarters of funding available (item 8.6 divided by 116.2
item 8.3)
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.
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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: 30 July 2021

Authorised by the Board

(Name of body or officer authorising release – see note 4) 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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