ALCHEMY RESOURCES LIMITED — Capital/Financing Update 2008

Jul 14, 2008

ABN 17 124 444 122

15 July 2008

The Manager Company Announcements Office Australian Securities Exchange 20 Bond Street SYDNEY NSW 2000

Dear Sir/Madam

HIGH GRADE IRON FORMATION AT THREE RIVERS GOLD PROJECT

Alchemy Resources Limited (ASX Code: ALY) (“Alchemy”) is pleased to announce that sampling of outcropping iron formations at the southern end of the recently acquired Three Rivers Gold Project in the highly prospective Robinson Range in WA’s Gascoyne District (see figure 1) has confirmed the presence of high grade hematite iron ore.

Managing Director Michael Hannington said, “The Alchemy board has extensive experience in the iron ore industry and we were aware of the potential for iron on the Three River tenements.”

Recent sampling conducted on an outcropping ridge, which extends over 2 kilometres in length, approximately 20 metres in exposed height and varying in width between 30-80 metres, returned iron grades of up to 67% Fe.

“These initial results are the highest iron grades reported from the Robinson Range to date. This is an exciting development for Alchemy and we will prepare a comprehensive exploration program to evaluate the full extent of the iron mineralisation on these tenements” added Mr Hannington.

Thirty samples on EL 52/1364 and EL 52/1582 (see figure 2), recorded grades above 60% Fe, with the highest grade reporting 67.88% Fe. The Company will release all the survey results when assaying is complete and the results are fully analysed.

Mr Hannington said, “Alchemy remains focused on developing its gold opportunities, however this exciting iron discovery at Three Rivers has the potential to provide a means of achieving early cash flow to fund current and future gold development projects in the Murchison District.”

ENDS

For further information contact: Michael Hannington Tony Dawe Managing Director Dawe Media Group Ph: (08) 9481 4400 Ph: 0413 322 110

E: admin@alchemyresources.com.au W: www.alchemyresources.com.au

1186 Hay Street GPO Box 2815 West Perth WA 6005 Perth WA 6001

T: +61 8 9481 4400 F: +61 8 9481 4404

Figure 1. Three Rivers Project Location and Regional Geology

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Figure 2. Three Rivers Reconnaissance iron formation sampling areas

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