ALCHEMY RESOURCES LIMITED — Interim / Quarterly Report 2008

Oct 30, 2008

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

	Name of entity
	ALCHEMY RESOURCES LIMITED
	ABN 17 124 444 122 Consolidated statement of cash flows
			30 SEPTEMBER 2008
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows		Current quarter $A’000		Year to date (3.months) $A’000
		- (40) - - (320) - 56 (1) - -		- (40) - - (320) - 56 (1) - -
		(305)		(305)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other: Acquisition of Three Rivers tenements Exploration & evaluation expenditure Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - (1) - - - - 3 (310) (171)		- - (1) - - - - 3 (310) (171)
		(479)		(479)
		(784)		(784)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(784)	(784)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other – Transactions costs from issuing Options Net financing cash flows	151 - - (2) - (8)	151 - - (2) - (8)
	141	141
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash atend of quarter	(643) 3,542 -	(643) 3,542 -
	2,899	2,899

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
			92
			-
1.25 Explanation necessaryfor anunderstanding of thetransactions Item 1.23 includes aggregate amounts paid to directors including salary, directors’ fees, consulting fees, superannuation and office services. Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assetsandliabilities butdidnot involve cash flows Consideration for the purchase of the Three Rivers Gold Project tenements from Troy Resources NL included $310,000 cash and 6,271,462 ordinary fully paid shares at a deemed value of $0.1595 each equating to $1 million. Denton Pty Ltd was paid 474,638 ordinary fully paid shares at 11.04 cents totalling $52,400 for introducing the transaction to Alchemy. 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhasan interest N/A		Explanation necessaryfor anunderstanding of thetransactions
		Item 1.23 includes aggregate amounts paid to directors including salary, directors’ fees, consulting fees, superannuation and office services.
	Consideration for the purchase of the Three Rivers Gold Project tenements from Troy Resources NL included $310,000 cash and 6,271,462 ordinary fully paid shares at a deemed value of $0.1595 each equating to $1 million. Denton Pty Ltd was paid 474,638 ordinary fully paid shares at 11.04 cents totalling $52,400 for introducing the transaction to Alchemy.
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhasan interest
	N/A

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

	3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
		44	44
		-	-

Estimated cash outflows for next quarter

	4.1 Exploration and evaluation 4.2 Development			$A’000
				400
				-
	Total			400
	Reconciliation of cash
	Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000		Previous quarter $A’000
	5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	2,899		3,542
		-		-
		-		-
		-		-
	Total: cash at end of quarter(item 1.22)	2,899		3,542

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	-	-	-	-

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements (continued)

6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	E52/698 E52/1139 E52/1363 E52/1364 E52/1472 E52/1582 P52/960 M52/684 M52/685 M52/686 M52/687 M52/688 M52/689 M52/690 M52/691 M52/722 M52/723 M52/737 M52/753 M52/795 M52/796 M52/797 M52/810 M52/811 M52/819 M52/820 M52/822 M52/823 M52/824 M52/825 M52/826 M52/839 M52/840 M52/841 M52/842 M52/843 M52/844 M52/845 M52/846 M52/847 M52/848	Granted Granted Granted Granted Granted Granted Granted Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application Application	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	46,346,100	31,614,500
	6,746,100	6,746,100
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options Listed Unlisted (1) Unlisted (2) Unlisted (3) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	25,484,000 5,250,000 1,000,000 1,000,000	21,536,250 - - -	Exercise price $0.25 $0.37 $0.50 $0.25	Expiry date 31 August 2010 30 June 2011 30 June 2012 30 June 2013
	17,165,250	-	$0.25	31August 2010
7.11 Debentures (totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.12 Unsecured notes (totals only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 31 October 2008 (Director/Company secretary) Print name: John Arbuckle

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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