ALCHEMY RESOURCES LIMITED — Capital/Financing Update 2009

Jul 27, 2009

==> picture [332 x 110] intentionally omitted <==

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

28 July 2009

ALCHEMY TO RAISE $2.5 MILLION IN SHARE PLACEMENT COMMITS TO DEVELOP HERMES GOLD PROJECT

HIGHLIGHTS

• Share placement to raise $2.5 million

• Memorandum of Understanding signed between Alchemy and Barrick for processing of Hermes gold ore at the Plutonic processing plant

• Mining studies to develop the Hawkeye open pit deposit well advanced with updated pit optimisation to be completed by August 2009

• Accelerated drilling program planned

• Intention to fast track development of Hermes Gold Project

• Strong financial position

• Strong indications for good resource upgrades

Alchemy Resources Limited (ASX Code: ALY) (“Alchemy”) is pleased to announce a placement of 13,875,000 ordinary fully paid shares to raise gross funds of $2.5 million. The shares will be placed with sophisticated and professional investors in Australia and overseas.

The placement proceeds will be used to:

• Conduct further drilling at the Hermes Gold Project to increase the existing JORC Code compliant indicated resource and to follow up recent drilling results that found intersections ( 5m @ 34g/t gold from 34m and 9m @ 5.1g/t gold from 108m in TRC236 and 12m @ 7.3g/t gold from 152m in TRC347) outside of the existing resource;

• Obtain development approvals to commence mining the existing JORC Code compliant indicated resource;

• Conduct studies to determine the most cost effective method of undertaking an excavate, load and haul operation to deliver ore to the Plutonic processing plant; and

• For working capital purposes.

Alchemy Managing Director, Michael Hannington said, “Alchemy is delighted to have received such strong support for its growth plans from investors. We can now aggressively drill test priority targets at the Hermes Gold Project and fast track development of the existing gold resource.”

“This is an exciting time for Alchemy shareholdes and investors. In less than 2 years since listing, the Company is making the transition from explorer to miner .”

“We have weathered the world economic fallout, conserved our cash and now we are extremely well placed to unlock considerable shareholder wealth, not only by mining our existing gold resource but by further aggressive exploration and drilling to upgrade that

18 Emerald Terrace GPO Box 2815 T: +61 8 9481 4400 E: admin@alchemyresources.com.au West Perth WA 6005 Perth WA 6001 F: +61 8 9481 4404 W: www.alchemyresources.com.au

resource. The highly encouraging results announced from recent drilling were announced on 10 June 2009 and 23 June 2009.”

Share Placement

The placement will be made in two tranches. The first tranche, of 6,875,000 shares at 16 cents per share, is expected to be allotted by 28 July 2009 under Alchemy’s 15% placement capacity. The second tranche, of 7,000,000 shares at 20 cents per share, is subject to shareholder approval.

A General Meeting of shareholders is expected to be conducted in early September 2009 to approve the second tranche. Assuming shareholder approval, allotment of the second tranche of shares will occur shortly after this date.

• Alchemy has firm commitments from investors to complete funding for the placement.

Upon quotation of the second tranche of shares, Alchemy’s total issued share capital is expected to be 60,221,100. Alchemy will also issue 3,000,000 options with an exercise price of 25 cents per option on or before 30 September 2009 to parties who have assisted with the placement.

Gold Processing

Alchemy has signed a non-binding Memorandum of Understanding (“MOU”) with Barrick (Plutonic) Ltd (“Barrick”) to provide the framework for a future binding toll treatment or ore sale agreement between the two companies.

• Alchemy is evaluating options to process up to 500,000 tonnes of ore per year to create significant cash flow.

The MOU with Barrick will allow the Company to explore options with Barrick to commence gold production without incurring significant pre-production capital costs, which will improve the economics of the Hermes Gold Project.

Further Exploration

Alchemy intends to utilise funds from the share placement to conduct a concerted exploration program over the Hermes Gold Project mining tenements. The Company will concentrate its exploration around the results of the the May 2009 reverse circulation (RC) drilling program which reported 5m @ 34g/t gold from 34m and 9m @ 5.1g/t from 108m in TRC236 and 12m @ 7.3g/t gold from 152m in TRC347.

• Regular drilling reports will be issued.

Alchemy also intends to follow up on targets identified by previous explorers that were not able to be drill tested due to native title issues.

• Alchemy announced on 30 June 2009 the extinguishment of Native Title.

2

Pit Re-optimisation

The Hermes Gold Project, which was purchased from Troy Resources NL in June 2008, contains a JORC Code compliant indicated resource of 1.7Mt @ 2.4 g/t gold, estimated in 1998 by Snowden using a gold price of A$550/oz.

A consultant mining engineer is conducting a pit re-optimisation of the indicated resource, utilising current gold prices and detailed information about the historical drilling and pit structures. This mining study is expected to be completed by August 2009.

 Shareholders can expect regular updates.

ENDS

For further information contact:

Michael Hannington Managing Director Ph: (08) 9481 4400

Media: Tony Dawe - 041 3322 110

3

Figure 1. Three Rivers Project Location Map

==> picture [472 x 379] intentionally omitted <==

==> picture [472 x 127] intentionally omitted <==

4

Figure 2. Hermes Gold Project Location Map

==> picture [508 x 410] intentionally omitted <==

5