ALCHEMY RESOURCES LIMITED — Capital/Financing Update 2009

Aug 27, 2009

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28 August 2009

DRILL TARGETING CAMPAIGN TO COMMENCE AT THREE RIVERS GOLD PROJECT

HIGHLIGHTS

• Field campaign to fast track development of exploration potential at Hermes Gold Project and identify drill targets for October 2009 drilling campaign

• Geological team to assess regional gold mineralisation over greater Three Rivers area

Alchemy Resources Limited (ASX Code: ALY) (“Alchemy”) is pleased to announce that prior to the commencement of an accelerated drilling campaign at its Hermes Gold Project in October 2009, the Company is undertaking a thorough field campaign over the 400 km[2 ] of its entire Three Rivers Project area.

In May 2009 Alchemy conducted a reverse circulation drill program that reported assay results outside of its existing JORC indicated resource of 8m @ 2.2g/t gold from 21m, 5m @ 34g/t gold from 34m, 9m @ 5.1g/t gold from 108m and 12m @ 7.3g/t gold from 152m. A follow up air core drilling program discovered shallow gold mineralisation along strike and on both sides of the existing resource and included results of 5m @ 6.4g/t gold from 3m and 15m @ 3.2g/t gold from 34m.

The discovery of these new zones of gold mineralisation within the Hermes Gold Project area highlighted the need to conduct an accelerated drilling campaign and the recent share placement of $2.5 million will facilitate this program. However, to ensure that Alchemy receives maximum benefit from its drilling expenditure, the directors have identified the need to gain a better understanding of the structural geology of the entire Three Rivers Project area and as such have decided to return to a first principles exploration approach.

In this regard, the directors have identified that there are currently three key assets within the Three Rivers Project area (Fig. 3):

• The Hermes Gold Project which contains the existing JORC code compliant indicated resource of 1.7Mt @ 2.4g/t gold for 131,000 ounces of contained gold and the newly discovered zone of gold mineralisation;

• The regional potential for gold mineralisation based on targets identified by previous tenement owners that were not able to be drill tested due to native title issues at that time (Fig. 1); and

• The iron ore potential at the Valley Bore target in the Robinson Range which has previously reported high grade outcropping hematite over 2 kms in length.

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

18 Emerald Terrace West Perth WA 6005

GPO Box 2815 Perth WA 6001

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Figure 1. Three Rivers Gold Project – Target Identification Program Over Gold in Soils Anomaly Image - Based on Soil Sampling by Previous Tenement Owners

On Monday, 31 August 2009 a team of highly experienced geologists led by Mr Jon Standing and Ms Kas de Luca of Jigsaw Geoscience will commence a two week field exploration program to achieve the following tasks:

• Planning an accelerated drilling program to expand the Hermes Gold Project Resource based on an enhanced understanding of Plutonic and Hermes mineralisation styles;

• Target strike extensions to the known JORC code compliant indicated resource;

• Evaluate the gold potential within the Hermes Gold Project (M52/685) near the known gold resources;

• Field map untested gold in soil targets identified by previous tenement owners; and

• Define a drilling program to test the depth extent of previously identified high grade iron ore located at Valley Bore in the Robinson Range (M52/844).

Jigsaw Geoscience’s geologists have been involved in many significant multi-commodity discoveries and successful exploration projects over the past two decades and bring extensive experience in exploration of the Marymia Inlier and adjacent basins.

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Subject to an information sharing agreement between Alchemy and Barrick (Plutonic) Ltd (“Barrick”), the geological team will also tour Barrick’s Plutonic Gold Mine to assist it with comparing the geological structures of the two areas. The Plutonic Gold Mine is located 60km northeast of Alchemy’s Three Rivers Gold Project (Fig. 2).

Alchemy has identified areas within M52/685 with geologic and geophysical features strikingly similar to the Hermes Gold Project but outside the area covered by previous soil sampling surveys. These areas will be assessed during the field campaign and if warranted will be drill tested as soon as possible. It is envisaged that areas targetted for drilling will be drill tested within one month of completion of the field program in mid-September.

Further, within Alchemy’s large tenement holding, numerous gold in soil anomalies to the south of the Hermes Gold Project and interpreted to be within the Naracoota Formation will be field checked (Fig. 1). High priority targets identified will also be drill tested as soon as possible.

Alchemy Managing Director, Michael Hannington said, “Alchemy’s recent capital raising has now provided us with sufficient funds to allow our geologists to aggressively drill test priority targets at the Hermes Gold Project and fast track development of the existing gold resource. ”

ENDS

For further information contact:

Michael Hannington Managing Director Ph: (08) 9481 4400

Media: Tony Dawe – 0413 322 110

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Figure 2. Three Rivers Project Location Map

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Figure 3. Three Rivers Project – Key Assets

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