ALCHEMY RESOURCES LIMITED — Capital/Financing Update 2008

Mar 5, 2008

ABN 17 124 444 122

6 March 2008

Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

ALCHEMY SIGNS DRILLING CONTRACT

Emerging Western Australian gold explorer, Alchemy Resources Limited (ASX Code: ALY) (“Alchemy”) is pleased to announce it has entered into a drilling contract with Alliance Drilling Pty Ltd (“Alliance Drilling”), which guarantees Alchemy will have access to an exploration drill rig until 30 June 2009.

Alliance Drilling, based in Cue Western Australia, will provide Alchemy with both reverse circulation (“RC”) and diamond drilling, which is targeting gold deposits in the highly prospective Murchison District. Alchemy anticipates that it will commence drilling high priority drill targets in late April 2008, once heritage clearance approvals have been obtained from the native title claimants.

Managing Director Michael Hannington said, “Having long-term access to a drilling rig is the cornerstone to Alchemy’s strategy to aggressively drill gold prospects in the Murchison District in a semi-continous program, rather than engaging in campaign drilling which is reliant on rig availability”.

ENDS

For further information contact:

Michael Hannington Managing Director Ph: (08) 9481 4400

Media: Tony Dawe - 041 3322 110

T: +61 8 9481 4400 E: admin@alchemyresources.com.au F: +61 8 9481 4404 W: www.alchemyresources.com.au

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