ALCHEMY RESOURCES LIMITED — AGM Information 2019

Nov 21, 2019

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AGM Presentation

22 November 2019

ASX: ALY

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Capital Structure
Listed on ASX	Nov 2007
Cash(30 Sept 2019)	$1.5m
Shares on Issue(21 Nov 2019)	550.5m	Overflow Diamond Drilling	West Lynn	SFR Drilling Commencement	SFR Drilling Results	Rights Issue	Karonie Drilling Commencement
			Ni-Co	Summervale
Options - unlisted(ex. 4c – 12c)	22.0m		Resource	Al Resource
Share Price(21 Nov 2019)	1.2c
Market Cap(21 Nov 2019)	$6.6m

Market Cap(21 Nov 2019) $6.6m	Market Cap(21 Nov 2019) $6.6m
Shareholder Details(21 Nov 2019)			Board & Management
Northern Star Resources	78.1m (14.2%)		Lindsay Dudfield	Non-Executive Chairman
Neil Watson	56.0m (10.2%)		Leigh Ryan	Managing Director
Lindsay Dudfield	47.4m (8.6%)		Liza Carpene	Non-Executive Director
Top 40	68%		Anthony Ho	Non-Executive Director
No of Shareholders	1,271		Bernard Crawford	Company Secretary / CFO

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• ❑ Staff-Admin-Corporate Costs maintained at low levels

• ❑ Exploration Expenditure to Total Cost ratios have improved and remain high (2017 = 59%, 2018 = 73%, 2019 = 65%)

• ❑ 2019 exploration statistics: 1,932m of drilling (RC & RAB) and 291 geochemistry samples

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• Quality gold project in well established gold province 100km east of Kalgoorlie

• ❑

• ❑ Surrounds Silver Lake’s Aldiss Mining Centre (mining ongoing)

• ❑ 38km strike of Claypan Shear Zone (Bombora host structure):

  • ✓ fertile shear zone within a poorly explored greenstone belt covered by shallow transported cover

  • ✓ close to Bombora resource 1.0Moz @ 1.3g/t Au (Breaker Resources ASX: BRB)

  • ✓ similar geological setting to Chalice gold mine which produced 630,000oz @ 4.9 g/t Au[1]

  • ✓ only 4 lines of RAB drilling over 38km

  • ✓ additional 5 wide-spaced, targeted RAB lines cleared and ready for drilling early next year

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1. Refer to http://www.portergeo.com.au/database/mineinfo.asp?mineid=mn955

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• ❑ 7 high quality gold targets (aircore, RC & diamond drilling planned)

• ✓ Parmelia (initial drilling completed – results pending) ✓ KZ5 (initial drilling completed – results pending) ✓ Taupo (initial drilling completed – results pending) ✓ Gilmore

• ✓ Aldiss

• ✓ Esplanade

• ✓ Challenger

• ❑ Strike extensions of Karonie & French Kiss deposits 593,000oz @ 2.0g/t Au (Silver Lake Resources ASX: SLR)

• ❑ Parmelia target: close to recent SLR Tank South discovery[1]

17m @ 24.7g/t Au 24m @ 9.4g/t Au 10m @ 10.1g/t Au 31m @ 4.4g/t Au

• ❑ Gilmore and Aldiss drill targets: newly discovered altered dolerite (host rocks at Karonie and Bombora) under transported cover (coincident with magnetic & gravity highs)

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1. Refer to Silver Lake Resources Limited ASX announcement dated 18 June 2019

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• Alchemy 51% - earning 80% interest by $0.4M spend before May 2021

❑

Overflow Project

❑

• ✓ Existing thick, high grade gold and base metal drill intercepts

• ✓ Drilling planned for 2020

West Lynn Project

❑

• ✓ JORC inferred resources established

• 21.3Mt @ 0.84% Ni, 0.05% Co[1]

• 6.6Mt @ 20.8% Al2O3 (HPA)[2]

• ✓ Additional metallurgical testwork planned

Refer to Alchemy Resources Limited ASX announcement dated 19 June 2019

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Hera	/ Cobar-style Attribute	Overflow
❑	Polymetallic (Ag-Au-Cu-Pb-Zn)	✓
❑	Proximity to major structures	✓
❑	Shear hosted	✓
❑	Chlorite-silica alteration	✓
❑	Short strike length (<200m)	✓
❑	Narrow widths (5-20m)	✓
❑	Vertical continuity	✓
❑	Stacked lenses	✓

• ❑ Cobar and Hera style deposits - high grade, long life underground mining operations.

• ❑ Hera style deposits are typified by lead-zinc rich upper sections transitioning into copper-rich lower sections.

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PEAK /
CHRONOS
FEDERATION
OVERFLOW
(Alchemy)
?
(Image adapted from Aurelia Metals Ltd website)
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❑ High grade gold and base metal mineralisation open down plunge

❑ Drilling planned

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Plan showing >1g/t Au grade shell, previous drilling and proposed drilling over satellite image

Ref. Alchemy Resources ASX Announcement 30 January 2018

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• ❑ West Lynn inferred JORC 2012 resource 21Mt @ 0.84% Ni, 0.05% Co*

Deposit	**Cut Off **	**Ore(Mt) **	Ni%	Ni(t)	Co%	Co(t)	Fe %
West Lynn	0.6% Ni	14.7	0.85	124,962	0.05	7,360	20.2
Summervale	0.6% Ni	6.6	0.82	54,440	0.04	2,920	19.7
Total	0.6% Ni	21.3	**0.84 **	179,291	0.05	10,280	20.0

• ❑ Good correlation between elevated magnetics and Ni-Co mineralisation

• ❑ ~10km of untested magnetic highs; good potential for resource expansion

• ❑ Further drilling required

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• Refer to Alchemy Resources Limited ASX announcement dated 19 February 2019

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• ❑ Good initial metallurgical recoveries using nitric acid leach (patented DNi Process™)

• ❑ Composite blended laterite/saprolite samples returned average recoveries of 87.1% for nickel and 86.9% for cobalt*

• ❑ West Lynn average Fe grade (20%) is ~half that of typical WA laterite deposits which facilitates atmospheric pressure nitric acid leach / standard solvent extraction for Ni-Co, eliminating requirement for HPAL and reducing upfront capital expenditure

• ❑ Nitric acid advantages include efficient acid recycling (>95%), potential MgO byproduct (for fertiliser), and benign tailings product

• ❑ Potential for calcination of the aluminium hydroxide by-product to produce high purity alumina (HPA)

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• Refer to Alchemy Resources Limited ASX announcement dated 29 April 2019

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❑ Summervale inferred JORC 2012 resource * ❑ 6.6Mt @ 20.8% Al2O3**

Deposit	Cut Off	**Ore(Mt) **	**Al2O3% **	**Al2O3 (Mt) **	**Fe2O3% **	**TiO2% **	SiO2%
Summervale	18% Al2O3	6.6	20.8	1.4	2.8	1.15	64

• ❑ Mineralisation open in all directions

• ❑ Potential for grade increase with beneficiation of ore

• ❑ Up to 70% aluminium extraction using standard HCl leach

• ❑ 99.95% HPA produced without process optimisation

• ❑ Good potential for optimisation of leaching & heat treatment stages

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• ❑ Further resource drilling and metallurgical test work required

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• Refer to Alchemy Resources Limited ASX announcement dated 19 June 2019

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• ❑ Mitchell Highway runs through the tenement

• ❑ 7km from Nyngan railway line (linked to Sydney & Newcastle)

• ❑ Summervale 3km from Nyngan- Bourke power line

• ❑ West Lynn 7km from Nyngan-Cobar power line

• ❑ 7km from Bogan Weir water pipelines (fed by Macquarie River)

• ❑ 12km from Nyngan township (>2,000 people)

• ❑ Native Title Exempt Freehold Land

• ❑ Nearby Ni-Co and Sc deposits offer potential synergies

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❑ Sandfire Resources NL (ASX: SFR) Farm-in expenditure >$6M over the past year

❑ Joint Venture now formed with Alchemy’s 20% interest free carried to PFS , up to $5M to DFS, then 20% share of costs to production repaid from 50% of Alchemy’s share of profit[1]

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• ❑ Superior Gold Inc. (TSX-V: SGI) Joint Venture - Alchemy’s 20% interest is carried to production & repaid from 50% of Alchemy’s share of profit

• ❑ Hermes South deposit - JORC 2012 inferred resource of 114Koz @ 1.6g/t Au[2]

• ❑ Alchemy retains a 1% NSR over 20,000oz gold recovered from Hermes[3] . Hermes production now at ~50,800oz[4]

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1 Refer to Alchemy ASX announcement dated 6 August 2018 2 Refer to Alchemy ASX announcement dated 8 May 2019 3 Refer to Alchemy ASX announcement dated 24 February 2015 4 Refer to Superior Gold Inc. website (Int. Analyst Center)

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❑ Aircore and follow-up RC drilling across a 35km strike of the De Grussa host rocks is continuing (Phase 2 AC - 800m & 400m drill line spacing)

• ❑ Significant intercepts to date include[1] :

5m @ 6.4g/t Au 30m @ 0.5g/t Au (incl. 5m @ 0.69g/t Au, 0.15% Cu) 5m @ 2.7g/t Au 5m @ 1.6g/t Au

• ❑ MLEM continuing

• ❑ Detailed gravity completed

• ❑ Horseshoe Lights AC drilling planned

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1 Refer to Alchemy ASX announcements dated 8 July 2019 and 23 September 2019

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Alchemy Activity Timeline & Newsflow	**Nov-19 **	Dec-19	Jan-20	**Feb-20 **	**Mar-20 **	**Apr-20 **	**May-20 **	Jun-20	Jul-20	**Aug-20 **	**Sep-20 **	**Oct-20 **	Nov-20
Sandfire drilling & results	✓	✓	✓	✓
Karonie RC/AC drilling completion & results	✓	✓
Karonie RAB drilling commencement					✓
Karonie RAB drilling & results					✓	✓	✓
Overflow extension drilling commencement							✓
Overflow extension drilling & results							✓	✓	✓
Karonie Aircore drilling commencement										✓
Karonie Aircore drilling & results										✓	✓
Karonie Diamond drilling commencement												✓
Karonie Diamond drilling & results												✓	✓
	✓	Potential ASX announcement

❑ Karonie Project (budget $600K)

✓ KZ5, Parmelia, Taupo RC drilling, & Taupo AC drilling (completed)

✓ Claypan RAB drilling

✓ Gilmore and Aldiss AC drilling

✓ Esplanade/Parmelia/Challenger pre-collared diamond drilling

❑ NSW Projects (budget $200K)

✓ Overflow pre-collared diamond drilling

✓ West Lynn alumina and Ni-Co metallurgical work

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Enterprise Value of <$7M = highly leveraged to success within our quality exploration projects

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ABN 17 124 444 122
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Disclaimer

This presentation has been prepared by Alchemy Resources Limited ( Alchemy or the Company ). This document contains background information about Alchemy current at the date of this presentation. The presentation is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statementsand opinions contained in this presentation.

This presentation is for information purposes only. Neither this presentation nor the information in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdictions. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such a jurisdiction.

This presentation does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

To the fullest extent permitted by law, Alchemy and its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.

This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Alchemy. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under any applicable law and the ASX Listing Rules, Alchemy does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation of any changes in events, conditions or circumstances on which any such forward looking statement is based.

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Leigh Ryan, who is the Managing Director of Alchemy Resources Limited and holds shares and options in the Company. Mr Ryan is a Member of the Australian Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (‘JORC Code 2012’). Mr Ryan consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Mineral Resources at the Hermes South Gold Deposit, the West Lynn Nickel-Cobalt Deposit and the Summervale Alumina Deposit is based on information compiled by Stephen Godfrey, who is an employee of Resource Evaluation Services Pty Ltd, a consultant to Alchemy Resources Limited. Mr Godfrey is a Fellow of the Australasian Institute of Mining and Metallurgy and a member of the Australian Institute of Geoscientists, and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (‘JORC Code 2012’). Mr Godfrey consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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