ALCHEMY RESOURCES LIMITED — Capital/Financing Update 2009

Nov 25, 2009

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ABN 17 124 444 122
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26 November 2009

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

CONVERSION OF OPTIONS

Alchemy Resources Limited (ASX Code: ALY) (the “Company” or “Alchemy”) advises that Novus Capital Pty Ltd, which was the sponsoring broker for Alchemy’s IPO and played an integral role in the initial float of the Company, has exercised 1,218,750 listed options which have been escrowed for the past two years. The options were provided to Novus as part of its sponsoring broker fee.

The funds generated from the exercise of the options ($304,687.50) will assist Alchemy in exploring the highly prospective Magnus Copper/Gold Project (“Magnus”) by covering the cost of the VTEM survey which is currently being conducted plus the cost of future staff, contractors, and drilling. It will also allow all other projects to maintain planned momentum at maximum efficiency.

The preliminary results of the VTEM survey at Magnus are being interpreted as they become available by the geological team headed by Alchemy’s Managing Director who is an experienced geophysicist.

The recently significantly enlarged Hermes Gold Project (“Hermes”) is in the middle of an extensive drilling program with more assay results due very soon.

Alchemy’s geological team has not only significantly extended the strike length and width of Hermes but also identified several new highly prospective areas which were previously untested by earlier tenement owners.

Results to date at Hermes are highly encouraging with 65% of current drilling encountering “significant gold intersections” outside the existing JORC code compliant indicated gold resource of 1.7Mt @ 2.4 g/t Au (equating to 131,000 ounces of contained gold). The best results of the current drilling are:

• 19m @ 10.78g/t gold from 84m (including 14m @ 14.54 g/t gold from 88m)

• 29m @ 2.26g/t gold from 72m (icluding 5m @ 10.70g/t from 72m)

• 9m @ 4.46g/t gold from 94m

GPO Box 2815 T: +61 8 9481 4400 E: admin@alchemyresources.com.au Perth WA 6001 F: +61 8 9481 4404 W: www.alchemyresources.com.au

18 Emerald Terrace West Perth WA 6005

The attached Appendix 3B also includes an additional 100,000 listed option that were converted by an optionholder to bring the total options converted to 1,318,750 ($329,687.50).

Yours faithfully ALCHEMY RESOURCES LIMITED

John Arbuckle Director

The information in this report that relates to Exploration Results is based on information compiled by Mr Lyndon Hopkins, who is a Member of the Australasian Institute of Geoscientists and a Member of the Australasian Institute of Mining & Metallurgy, is a part-time employee of Alchemy Resources Limited. Mr Hopkins has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves’. Mr Hopkins 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 is based on information compiled by Mr Shaun Hackett, who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Snowden Mining Industry Consultants Pty Ltd. Mr Hackett has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves’. Mr Hackett consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.

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Appendix 3B – Alchemy Resources Limited New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

ALCHEMY RESOURCES LIMITED

ABN

17 124 444 122

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of+securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the+securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	Ordinary Shares
	1,318,750 Ordinary Fully Paid Shares following the exercise of listed 25 cents options expiring 31 August 2010
	Fully Paid

Appendix 3B Page 1

Appendix 3B – Alchemy Resources Limited New issue announcement

4 Do the+securities rank equally in all respects from the date of allotment with an existing +class of quoted+securities? If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 7 Dates of entering+securities into uncertificated holdings or despatch of certificates 8 Number and +class of all +securities quoted on ASX (_including_the securities in clause 2 if applicable)	Yes	Yes
	$0.25 per share ($329,687.50)
	Exercise of listed options
	26 November 2009
	Number	+Class
	65,781,008 21,674,092	Ordinary Shares Options exercisable at $0.25 on or before 31 August 2010

Appendix 3B Page 2

Appendix 3B – Alchemy Resources Limited New issue announcement

9 Number and+class of all +securities not quoted on ASX (including the securities in clause 2 if applicable)	Number	+Class
	4,500,000 1,100,000 1,100,000 2,000,000	Options exercisable at $0.25 on or before 30 June 2011 Options exercisable at $0.37 on or before 30 June 2012 Options exercisable at $0.50 on or before 30 June 2013 Options exercisable at $0.25 on or before 30 September 2012

10 Dividend policy (in the N/A case of a trust, distribution policy) on the increased capital (interests)

Part 2 - Bonus issue or pro rata issue

11 Is security holder approval required? 12 Is the issue renounceable or non- renounceable? 13 Ratio in which the+securities will be offered 14 +Class of+securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions 18 Names of countries in which the entity has+security holders who will not be sent new issue documents. Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7.	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A

Appendix 3B Page 3

Appendix 3B – Alchemy Resources Limited New issue announcement

19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of+security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do+security holders sell their entitlements_in full_through a broker? 31 How do+security holders sell _part_of their entitlements through a broker and accept for the balance?	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A

Appendix 3B Page 4

Appendix 3B – Alchemy Resources Limited New issue announcement

• 32 How do[+] security holders dispose of their entitlements (except by sale through a broker)?

N/A

• 33 +Despatch date

N/A

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities ( tick one )

• (a)[Shares described in Part 1 ]

• (b)[All other securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

• 36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

• 37 A copy of any trust deed for the additional[+] securities

Appendix 3B Page 5

Appendix 3B – Alchemy Resources Limited New issue announcement

Entities that have ticked box 34(b)

38 Number of securities for which N/A +quotation is sought 39 Class of[+] securities for which N/A quotation is sought 40 Do the[+] securities rank equally in N/A all respects from the date of allotment with an existing[+] class of quoted[+] securities? If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation N/A now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) Number +Class 42 Number and +class of all N/A +securities quoted on ASX ( including the securities in clause 38)

Appendix 3B Page 6

Appendix 3B – Alchemy Resources Limited New issue announcement

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the +securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

  • Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: ............................................................ Date: 26 November 2009 (Director/Company Secretary)

Print name: John Arbuckle == == == == ==

Appendix 3B Page 7