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ALARA RESOURCES LIMITED Share Issue/Capital Change 2007

Dec 5, 2007

64461_rns_2007-12-05_d932cedc-488f-4f2a-a6e9-cb67a844aa79.pdf

Share Issue/Capital Change

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Alara Uranium Limited A.B.N. 27 122 892 719 Level 14, The Forrest Centre 221 St Georges Terrace Perth Western Australia 6000

Telephone | +61 8 9214 9787 Facsimile | +61 8 9322 1515 Web | www.alarauranium.com Email | [email protected]

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Thursday, 6 December 2007

MARKET ANNOUNCEMENT

Strike’s Distribution Of 16 Million Alara Shares In Specie

Strike Resources Limited ( Strike or SRK ) shareholders approved a return of capital of 16 million Alara Uranium Limited ( Alara or AUQ ) shares at its Annual General Meeting held on 30 November 2007 ( InSpecie Distribution ).

Strike’s timetable for effecting the In Specie Distribution is as follows:

Event Business Day
Record Date to determine entitlement of Strike shareholders to Alara 5 pm on Monday, 10 December 2007
shares under the_In Specie_Distribution
Despatch of AUQ holding statements to Strike shareholders By No later than Monday, 17 December 2007

Strike’s current holding of 28.75 million Alara shares are escrowed until 24 May 2009.

ASX has advised Alara that the In-Specie Distribution received by Strike shareholders (other than the related parties and promoters of Alara, Strike or any of their associates) will cease to be subject to restriction after the despatch of AUQ holding statements to Strike shareholders.

Alara will enter into restriction agreements (for an escrow period expiring on 24 May 2009) in relation to Alara shares distributed to related parties and promoters of Alara, Strike or any of their associates, under the Strike In-Specie Distribution. The balance of Strike’s 12.75 million Alara shares will remain in escrow until 24 May 2009.

Further information:

Shanker Madan Managing Director T | (08) 9214 9787 E | [email protected]

Victor Ho Company Secretary T | (08) 9214 9787

E | [email protected]

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ASX Code | AUQ