ALCHEMY RESOURCES LIMITED — Capital/Financing Update 2018

Jun 11, 2018

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12 June 2018

Dear Optionholder

NOTICE TO OPTIONHOLDERS OF NON-RENOUNCEABLE ENTITLEMENT OFFER

We write to you as the registered holder of the Alchemy Resources Limited (ASX: ALY ) ( Company ) options as at today's date. As advised in the Company's ASX announcement dated 12 June 2018, the Company is undertaking a non-renounceable pro-rata Entitlement Offer ( Offer ) to eligible shareholders of ordinary fully paid shares in the Company at an issue price of $0.015 per share and on the basis of 1 new share ( New Share ) for every 4 shares held at the record date on 18 June 2018 ( Record Date ). Pursuant to the Offer, the Company will issue up to 88,083,896 New Shares to raise up to $1,321,258 before costs.

The Offer will be available to all of the Company's shareholders registered on the Record Date whose registered address is in Australia or New Zealand ( Eligible Shareholders ).

A prospectus in relation to the Offer was lodged with ASIC on 12 June 2018 and will be sent to Eligible Shareholders in due course. Under the terms of the options you currently hold, there is no entitlement to participate in the Offer unless you exercise your options, and are entered onto the register as a shareholder of the Company by 5pm (WST) on the Record Date.

If you wish to participate in the Offer, a notice of options exercise and payment of the options exercise price should be lodged with the Company's share registry, Security Transfer Australia Pty Ltd, with sufficient time to ensure that you are registered as a shareholder of the Company by the Record Date.

If you do not wish to participate in the Offer, no action is required.

If you require clarification on any of the above matters, please contact the Company Secretary, on +61 (8) 9481 4400 and for all general shareholder enquiries, please contact Security Transfer Australia Pty Ltd on 1300 992 916 (within Australia) or +61 3 9628 2200 (outside Australia).

Yours sincerely

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Lindsay Dudfield Non-Executive Chairman

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

Suite 8, 8 Clive Street West Perth WA 6005

GPO Box 2815 T: +61 8 9481 4400 Perth WA 6001 F: +61 8 9481 4404