ALCHEMY RESOURCES LIMITED — Capital/Financing Update 2008

May 27, 2008

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----- Start of picture text ----- ABN 17 124 444 122----- End of picture text -----

28 May 2008

The Manager Company Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000

Dear Sir/Madam

Issue of Loyalty Options

Highlights

• Alchemy confirms 1 for 2 entitlement issue of 25 cent options expiring 31 August 2010

• Shareholders registered as at 11 June 2008 will be eligible to participate

• Options anticipated to commence trading on ASX on 16 July 2008

Alchemy Resources Limited (ASX Code: ALY – “Alchemy”) is pleased to announce that it will undertake a pro-rata, non renounceable entitlements issue of options to shareholders as foreshadowed in its IPO prospectus.

The Company will lodge a Prospectus with the Australian Securities and Investments Commission (ASIC) and the Australian Securities Exchange (ASX) for the issue of up to 19,800,000 options on a one for two basis (one option for every two shares held) at an issue price of 1 cent per option. The Options will have an exercise price of 25 cents per option and an expiry date of 31 August 2010.

All shareholders registered as at 5.00pm on 11 June 2008 are entitled to participate in the entitlement issue of options. The prospectus and a personalised acceptance form will be dispatched to eligible shareholders (registered as holding shares in the Company as at the record date of 11 June 2008) on or around 13 June 2008.

Eligible shareholders who wish to subscribe for Options will need to complete and return the personalised acceptance form that will accompany the prospectus.

The closing date for acceptances is anticipated to be 5.00pm WST on 9 July 2008 unless the Offer is extended and the Company will apply to the ASX for official quotation of the options.

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

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

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

The prospectus will be available for viewing on Alchemy’s website at www.alchemyresources.com.au.

Timetable and Important Dates

Timetable and Important Dates
Event	Date
Lodgement of Prospectus with ASIC	29 May 2008
Notice to Shareholders	30 May 2008
Shares quoted on an “ex” basis	4 June 2008
Record Date for determining Shareholder entitlements	11 June 2008
Opening Date and dispatch of Prospectus to Shareholders	13 June 2008
Closing Date of Offer	9 July 2008
Options quoted on a deferred settlement basis	10 July 2008
Allotment and dispatch of holding statements	16 July 2008

• Key dates are subject to change and final confirmation.

For further information please contact:

Michael Hannington Managing Director

John Arbuckle Director/Company Secretary

Yours sincerely,

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Michael Hannington Managing Director

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