ALCHEMY RESOURCES LIMITED — Interim / Quarterly Report 2016

Jan 30, 2017

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DECEMBER 2016 QUARTERLY REPORT

Highlights

KARONIE PROJECT (WA) – gold

BOARD OF DIRECTORS

Mr Oscar Aamodt Non-Executive Chairman

Mr Leigh Ryan Managing Director

Ms Liza Carpene Non-Executive Director

Mr Lindsay Dudfield Non-Executive Director

Mr Anthony Ho Non-Executive Director

ISSUED CAPITAL SHARES 230,788,035 OPTIONS 10,500,000 (Unlisted)

• New applications during period more than double Alchemy’s landholding at Karonie to 670km²

• Grant of key tenements expected January 2017

• Drill testing of key targets to commence after grant of tenements

LACHLAN PROJECTS (NSW) – gold & base metals

• Initial diamond drilling to confirm the continuity of high grade goldsilver-lead-zinc mineralisation, and subject to further modelling, test a VTEM conductivity anomaly at depth down plunge of the high grade mineralisation at Overflow. Drilling is to commence early in 2017

BRYAH BASIN PROJECT (WA) – gold & base metals

PROJECTS

BRYAH BASIN (80-100%) KARONIE (100%)

LACHLAN (earning up to 80%)

• Independence Group NL ( ASX: IGO ) completes MLEM survey and identifies orogenic gold targets at Bullgullan Bore and the Moby area.

• Billabong Gold completes aerial topographic survey in preparation for resource drilling work at Wilgeena.

Suite 8/8 Clive Street WEST PERTH WA 6005

Phone: +61 8 9481 4400 Facsimile: +61 8 9481 4404 www.alchemyresources.com.au

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CORPORATE

• Highly experienced geologist Leigh Ryan appointed Managing Director

• Cash at 31 December 2016 – $0.86M

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Alchemy Resources Ltd (ASX: ALY ; “ Alchemy ” or “the Company ”) is an Australian gold and base metal exploration company focused on growth through the discovery and development of gold and base metal resources within Australia.

Alchemy has built a significant, 100% owned land package in the Karonie greenstone belt (Figure 1) in the Eastern Goldfields region in Western Australia. The Karonie Project is in one of Australia’s premier gold provinces with significant potential to discover additional gold resources. Drill testing of numerous high-grade gold targets at the Project will commence early in 2017.

In May 2016 Alchemy entered into a Farm-in and Joint Venture Agreement to earn an 80% interest in the Lachlan Projects in New South Wales ( Figure 1 ). This project is in a well-endowed gold and base metal district with significant upside for gold and copper mineralisation. Alchemy intends to advance targets through discovery and extensional drilling to define sufficient resources to underpin a profitable near-term development.

Alchemy maintains its interest in the Bryah Basin Project in the emerging gold and base metal-rich Gascoyne region of Western Australia ( Figure 1 ) where farm-in and joint venture partners, Independence Group NL (ASX: IGO ; “ IGO ”) and Billabong Gold Pty Ltd (“ Billabong Gold ”) are continuing to advance base metal and gold exploration, respectively.

Work completed in the December 2016 Quarter involved planning of targeted drilling programs at the Lachlan and Karonie Projects, with drilling at both projects expected to commence in the March 2017 quarter.

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Figure 1 : Alchemy Resources’ Project Location Map.

Karonie Project (WA) (Alchemy 100%)

The Karonie Project, located 100km east of Kalgoorlie, comprises 7 applications and 1 granted exploration licence covering over 670km[2 ] of highly prospective Archaean greenstones in the Eastern Goldfields in Western Australia ( Figure 2 ). Karonie is strategically located close to existing processing plants, and given the already substantial gold endowment in the area (>470,000 oz. gold), Alchemy is focusing its near-term exploration efforts towards the discovery of additional high-grade gold mineralisation.

Quarterly Report 1 October 2016 – 31 December 2016

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The Project surrounds Silver Lake Resources’ (ASX: SLR ) Harry’s Hill deposit ( Figure 2 ) with a Probable Reserve of 1.05Mt at 2.2g/t gold for 75,000oz. gold ( see Silver Lake Resources ASX announcement dated 26 August 2016 ). The Karonie Project is located between regional-scale Keith-Kilkenny and Claypan fault zones ( Figure 2 ) directly along strike from Breaker Resources’ (ASX: BRB ) Lake Roe Project ( Figure 2 ) where RC drilling over a 4.4km strike at Bombora-Crescent continues to return high-grade gold assays including 39m @ 3.22g/t Au (see Breaker Resources ASX Announcement dated 19 December 2016 ).

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Figure 2: Karonie Project – Alchemy tenements and prospects over simplified bedrock geology, major faults and aeromagnetic image.

Quarterly Report 1 October 2016 – 31 December 2016

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Historic shallow RAB and aircore drilling has outlined the Esplanade/Esplanade South, Batavia, Challenger and Admiral gold trends in the southern half of the Karonie Project. Follow-up RC drilling is planned for these areas targeting high-grade historic gold intercepts including 8m at 3.37g/t Au from 38m, 9m at 3.01g/t Au from 61m and 5m at 2.86g/t Au from 101m within the 4km long Esplanade trend, and 8m at 2.11g/t Au from 12m, 3m at 14.57g/t Au from 121m, and 1m at 24.81g/t Au from 70m at the Batavia Prospect ( Figure 3 ) (see Alchemy Resources ASX announcement dated 28 October 2016) .

Follow-up RC drilling is also required at the Taupo Prospect ( Figure 2 ), about 2km north of the Karonie mine, where shallow broad-spaced historic drilling returned gold intercepts including 6m at 1.94g/t Au from 74m to EOH, 10m at 2.55g/t Au from 30m and 22m at 1.06g/t Au from 42m. Gold mineralisation remains open to the north and south of Taupo. The KZ5 Prospect ( Figure 2 ) has gold and base metal anomalism, and untested IP and EM anomalies over a strike extent of 1.2km. Anomalous historic gold and zinc intercepts, including 20m at 1.58 g/t Au from 190m and 14m at 0.44% Zn (from 202m) and 12m at 1.37 g/t Au, 0.71% Zn from 42m also require drill testing (see Alchemy Resources ASX announcement dated 28 October 2016) .

Targeted RC drilling programs are planned to commence early in 2017, as soon as the exploration licences are granted and statutory approvals are in place.

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Figure 3: Karonie Project –Esplanade, Batavia and Challenger gold prospects – Maximum downhole Au values from historic drilling over Aeromagnetic image.

Quarterly Report 1 October 2016 – 31 December 2016

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Lachlan Projects (NSW) (Alchemy earning up to 80%)

During 2016 Alchemy entered into a farm-in and joint venture agreement with Heron Resources Ltd (ASX: HRR ; “ Heron ”) to earn up to an 80% interest in gold and base metal projects covering 674km[2 ] in the highly prospective under-explored central Lachlan province in NSW ( Figure 4 ). The Lachlan Projects consist of the Overflow GoldBase Metal Project, the Eurow Copper-Gold Project and the Girilambone Copper Project each containing multiple gold and/or base metal targets, including drill-ready targets at Overflow. The projects are proximal to high profile mining centres in the central Lachlan, including Hera/Nymagee (Aurelia Metals Ltd), Mallee Bull (Peel Mining Ltd), Tritton (Aeris Resources Ltd) and the Parkes mining centre ( Figure 4 ).

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Figure 4 : Lachlan projects – Overflow, Eurow & Girilambone – Farm-in / Joint Venture Agreement with Heron Resources.

Overflow Gold-Base Metal Project (378km[2] )

The Overflow Gold-Base Metal Project (“ Overflow ”) consists of four exploration licences located over a 50km long section of the Gilmore Suture at the intersection of the Lachlan Transverse Fault Zone ( Figure 4 ). The project is highly prospective for epithermal and Cobar-style Au and base-metal mineralisation.

Mineralisation at the Overflow Prospect is structurally-controlled high-grade Au-Ag and base metal credits, with extensive down-plunge potential, typical of Cobar-style mineralisation.

Quarterly Report 1 October 2016 – 31 December 2016

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Significant drill intercepts in historic drilling by Delta Gold Limited and Triako Resources Limited at Overflow includes:

BOBRCPC6 4.65m at 20.39 AuEq[] from 185.4m (8.49g/t Au, 79g/t Ag, 0.22% Cu, 13.5% Zn, 7.1% Pb) TBB001 10m at 7.03 AuEq[] from 163m (4.44g/t Au, 21g/t Ag, 0.07% Cu, 3.0% Zn, 1.3% Pb) TBB006 16m at 3.28 AuEq[] from 162m (1.13g/t Au, 88g/t Ag, 0.09% Cu, 1.15% Zn, 0.43% Pb) TBB008 7m at 4.53 AuEq[] from 198m (1.67g/t Au, 135g/t Ag, 0.04% Cu, 1.3% Zn, 0.5% Pb) & 7m at 7.76 AuEq[] from 236m (5.46g/t Au, 19g/t Ag, 0.32% Cu, 1.9% Zn, 1.4% Pb) TBB017 6m at 7.64 AuEq[] from 121m (4.69g/t Au, 39g/t Ag, 0.21% Cu, 2.4% Zn, 1.9% Pb) & 6m at 10.71 AuEq[*] from 136m (7.55g/t Au, 29g/t Ag, 0.11% Cu, 3.6% Zn, 1.5% Pb)

Gold equivalent (AuEq) values were assigned to each drilling intersection using the following formula (based on metal prices at the time): AuEq (g/t) = Au (g/t) + Ag0.014 (g/t) + Cu1.11 (%) + Zn0.54 (%) + Pb*0.46 (%).

A review of the historic drilling and 3D modelling of mineralisation at Overflow undertaken during the previous quarter suggests the mineralisation dips steeply to the WSW, plunges to the south, is associated with distal chlorite-sericite and proximal silica alteration, and displays a significant metal zonation.

Metal distributions were modelled for AuEq, Au, Ag, Cu, Zn, Pb and sulphides with lithology. Total grade multiplied by thickness contours of AuEq values are illustrated as a long section through the deposit and suggest that several high-grade zones remain open down plunge or open down dip ( Figure 5) .

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Figure 5 : Overflow Prospect long section looking east showing drill intercept AuEq grade x metre shells (red = >50gxm AuEq, orange = >30gxm AuEq, green = >20gxm AuEq), historic drilling (traces coloured by Au and Cu grades) and planned diamond drilling (magenta lines) with drill target pierce points (magenta circles).

• AuEq g/t values used in this report refers to the calculated Au equivalent grade based on the Au, Ag, Cu, Zn and Pb grades. The AuEq calculation takes into account the following metal prices: Au US$1325/oz, Ag US$19/oz, Cu US$2.15/lb, Zn US$1.05/lb and Pb US$0.90/lb. As the project is at the exploration stage, these equivalent grades do not take into account factors such as recoveries, mining costs, milling costs, or payability.

Quarterly Report 1 October 2016 – 31 December 2016

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An initial targeted drilling program has been planned to confirm the continuity of high grade gold-silver-lead-zinc mineralisation and subject to further modelling, test a VTEM conductivity anomaly at depth (350m below surface), down plunge of the high grade mineralisation. The southerly plunging grade shells, VTEM anomaly and planned drilling are illustrated in Figures 5 & 6 . Drilling is scheduled to commence early in the March quarter.

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Figure 6 : Overflow Prospect plan showing Au-Ag-Pb-Zn-Sb shell outlines (>0.27g/t, >6g/t, >1000ppm, >1500ppm, >10ppm respectively), historic drilling (traces coloured by Au and Cu grades) and planned diamond drilling (magenta lines) over -350m RL VTEM conductivity anomaly.

Outside of the historic mine area a number of regional prospects have been delineated and warrant further exploration. Along strike to the south of the Overflow mine, at the BO2 target ( Figure 7 ), a single historic drill hole targeting an IP chargeability anomaly was terminated at the edge of the anomaly in weak mineralisation ( 12m at 0.42g/t Au to end of the hole) with visible chalcopyrite identified. This represents a priority target for future drill testing.

Quarterly Report 1 October 2016 – 31 December 2016

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Figure 7 : Overflow Gold-Base Metal Project showing Overflow mining centre, historic drilling, mineral occurrences, and gold/base metal prospects over aeromagnetic imagery.

At the Parkvale target ( Figure 7 ), narrow high-grade intersections, including 0.7m at 5.7% Cu and 1.2% Pb in BO1A drilled in 1977, have not been followed up. Coherent Au-Zn in soil anomalism over an area of 600 x 400m at Prettyview ( Figure 7 ) has not been drilled tested. At Black Range Tank and Airport ( Figure 7) , outcropping gossans and limited shallow drilling has returned base metal anomalism within semi-coincident EM anomalies.

At Yellow Mountain, approximately 25km along strike to the south of Overflow ( Figure 4 ), previous drilling around historic copper workings returned a number of broad Cu-Ag-Au intercepts (see Alchemy Resources ASX announcement dated 28 October 2016) including:

YD13 32m at 0.36% Cu, 1.7g/t Au, 34g/t Ag (from 185m) Incl. 7.4m at 0.7% Cu, 5.7g/t Au, 102g/t Ag, 5.1%Pb, 6.7% Zn (from 206m) PYM12 64m at 0.40% Cu, 0.4g/t Au, 24g/t Ag (from 64m) PYM11 56m at 0.30% Cu, 0.5g/t Au, 34g/t Ag (from 14m) YP05A 83m at 0.44% Cu (from surface) (no Au-Ag assays)

Quarterly Report 1 October 2016 – 31 December 2016

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The prospect was last drill tested in 1986 with many of the drill holes not assayed for gold. The broad zones of mineralisation are coincident with a significant IP anomaly and the prospect represents a priority target for ground geophysics and further drill testing.

Eurow Copper-Gold Project (167km2)

The Eurow Copper-Gold Project (“ Eurow ”), located 30km southeast of Parkes ( Figure 4 ), covers meta-sediments and granite intrusives within the Lachlan Transverse Zone. The Project area contains the historic Eurow-Vychan Cu-Au workings where drilling by previous companies returned high-grade intercepts of 8m at 2.94% Cu and 0.85g/t Au from 47m, 3m at 4.0% Cu and 1.25g/t Au from 73m, and 4.4 metres at 1.57% Cu and 0.63g/t Au from 212m. Further drill testing at this prospect is warranted.

Girilambone Copper Project (129km2)

The Girilambone Copper Project (“ Girilambone ”) is located 20km east of Aeris’ Tritton copper operation and along strike of the Murrawombie / Girilambone Copper Mine. The area is prospective for ‘Besshi-type’ volcanic massive sulfide (VMS) copper-gold mineralisation within mafic units of the Ordovician Girilambone Group. An historic exploration data compilation and evaluation is underway.

- Proposed Near Term Exploration Activities

Statutory approvals for the priority diamond drilling program confirming continuity and targeting down-plunge positions of the mineralisation zones at the Overflow mining centre have now been received. Drilling is scheduled to commence early in 2017.

Bryah Basin Project (WA) (Alchemy 80-100%)

Alchemy’s Bryah Basin Project comprises a 500km[2] ground package, located 130km NE of Meekatharra, Western Australia. The Project is located along strike and west of Sandfire Resources NL’s (ASX: SFR ) high-grade DeGrussa and Monty copper-gold deposits, and adjacent to Peak Hill where about 1Moz of gold has been mined from several deposits ( Figure 8 ). Alchemy holds 100% interest in the project with the exception of several tenements held in joint venture (Alchemy 80%) with Fe Ltd (ASX: FEL ). Alchemy retains its interests in the base metal and gold prospective Bryah Basin Project through farm-in and joint venture agreements with Independence Group NL (ASX: IGO ) (“ IGO ”) and Billabong Gold Pty Ltd (“ Billabong Gold ”).

Alchemy also has a 1% net-smelter royalty over future production from 50,000 oz to 70,000 oz gold from the Hermes gold deposit ( Figure 8 ), where a maiden Probable Ore Reserve of 101,000 oz gold (1.565Mt at 2.0g/t Au) has been released ( see Northern Star Resources Ltd ASX announcement dated 28 July 2016 ).

During the period Billabong Gold and its parent entity (2525908 Ontario Inc) completed the purchase of the Plutonic gold operations from Northern Star Resources Ltd (ASX: NST ), which included NST’s interest in the Bryah Basin farm-in and joint venture agreement with Alchemy, as well as Alchemy’s gold royalty over the Hermes gold deposit ( see Northern Star Resources Ltd ASX announcement dated 12 October 2016 ).

Quarterly Report 1 October 2016 – 31 December 2016

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Figure 8: Bryah Basin Project – IGO JV and Billabong Gold JV areas and gold and base metal prospects.

Base Metals Exploration (IGO earning up to 80%)

Leading Australian base metal and gold producer IGO is exploring and earning an interest (“ IGO JV ”) in the whole and part tenements that cover the base metal prospective area of the Bryah Basin Project. Under the terms of the IGO JV, IGO can earn up to 80% in Alchemy’s interests (excluding iron ore rights) through Earn-In Expenditure of $6M within five years, with Alchemy free-carried on further exploration to completion of a Pre-Feasibility Study and then carried on an interest-free deferred basis for a further $5M of Definitive Feasibility Study expenditure.

The IGO JV area contains more than 40km of strike extent of the Narracoota – Karalundi volcano-sedimentary sequence, host to Sandfire Resources’ DeGrussa copper-gold deposit and the high-grade Monty copper-gold resource ( Figure 8 ), and prospective for discovery of VMS-style copper-gold deposits.

During the period IGO reported assay results from 113 aircore holes drilled to the east and west of the Churchill prospect, to the east of Central Bore, and at the Moby and Magnus targets ( Figure 8 ). Results from 4m composite sampling were not significant and deemed not material to Alchemy. One metre resampling of selected composite samples has been recommended.

IGO further advised that a moving loop electromagnetic (MLEM) survey was completed over selected targets including the Moby Prospect during the quarter. The survey defined three large moderate strength conductors interpreted to be related to stratigraphy. A geological interpretation, including updated cross sections, geochemical contouring and prospectivity update was also completed utilising drill logs and assays from the latest drilling program.

An independent geological review of the IGO JV area was completed by R. Osborne during the period. No additional base metal targets were identified however orogenic gold targets were identified at Bullgullan Bore and the Moby area. Additional drilling is being considered.

Quarterly Report 1 October 2016 – 31 December 2016

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Gold Exploration (Billabong Gold earning up to 80%)

Exploration of Alchemy’s whole and part tenements that cover the gold prospective part of the Bryah Basin Project ( Figure 8 ) continued under a farm-in and joint venture arrangement initially with Northern Star Resources Ltd, and subsequently with Billabong Gold (“ Billabong Gold JV ”). Under the terms of the Billabong Gold JV up to 80% in Alchemy’s interests can be earned through earn-in exploration expenditure of $1.2M within three years on the gold prospective tenements. Total expenditure since the Commencement Date (17 April 2015) is currently $0.64M. Upon fulfilment of the earn-in expenditure, Alchemy’s interest is carried on an interest-free deferred basis to production, with Alchemy to repay the deferred amount at the rate of 50% of its share of free cash flow from production following commencement of mining.

The Billabong Gold JV currently has a JORC 2004 Indicated Resource of 87,373 ounces of gold (1.36Mt @ 1.99g/t Au) at the Wilgeena Prospect. The mineralisation is open at depth and further drilling has excellent potential to expand the area of gold mineralisation and add to the known resource.

No on-ground exploration activity was conducted by Billabong Gold on the Joint Venture tenements during the period, however resource wireframes and proposed drill programs were reviewed in preparation for upcoming resource drilling work at Wilgeena, and an aerial topographic survey of the Wilgeena and Central Bore prospect areas was completed.

Billabong Gold advises that they intend to undertake further infill and extension geochemical auger drilling together with RC drilling over the Wilgeena area during the March 2017 quarter.

Corporate

At 31 December 2016, the Company retained a cash balance of $0.86M.

On 9 January 2017 Alchemy announced that Leigh Ryan had been appointed Managing Director of the Company. Leigh is a geologist with extensive experience exploring for gold and base metals in Australia and Africa, including over 10 years with Resolute Mining (ASX: RSG ) where he became Group Exploration Manager. Leigh’s experience and enthusiasm will be invaluable as Alchemy looks to advance the Karonie and Lachlan Projects and assess new opportunities for the Company.

Please direct enquiries to: Mr Leigh Ryan – Managing Director

Telephone: +61 8 9481 4400

Quarterly Report 1 October 2016 – 31 December 2016

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APPENDIX 1 Schedule of Mining Tenements as at 31 December 2016

Project/Tenement	State	Status	Interest startQtr	Interest endQtr	Co-holder	Notes
Bryah Basin Project
E52/1668	WA	Granted	80%	80%	Jackson Minerals PtyLtd	1,2,3
E52/1678	WA	Granted	80%	80%	Jackson Minerals PtyLtd	1,2,3
E52/1722	WA	Granted	80%	80%	Jackson Minerals PtyLtd	1,2
E52/1723	WA	Granted	100%	100%		2,4,5
E52/1730	WA	Granted	80%	80%	Jackson Minerals PtyLtd	1,2,3
E52/1731	WA	Granted	100%	100%		2,4
E52/1810	WA	Granted	100%	100%		2
E52/1852	WA	Granted	100%	100%		4
E52/2360	WA	Granted	100%	100%		2,7
E52/2362	WA	Granted	100%	100%		2,4,6
E52/3292	WA	Granted	100%	100%		2
E52/3405	WA	Granted	100%	100%		2,4,6
E52/3406	WA	Granted	100%	100%		2,4,6
E52/3407	WA	Granted	100%	100%		2,6
E52/3408	WA	Granted	100%	100%		2,4,6
E52/3409	WA	Granted	100%	100%		2,6
E52/3472	WA	Granted	100%	100%
E52/3475	WA	Granted	100%	100%
M52/722	WA	Granted	100%	100%		2,4,6
M52/723	WA	Granted	100%	100%		2,4,6
M52/737	WA	Granted	100%	100%		4,6
M52/795	WA	Granted	100%	100%		2,4,6
M52/844	WA	Granted	100%	100%		2,6
M52/1049	WA	Granted	100%	100%		4,6
P52/1195	WA	Expired	80%	0%	Jackson Minerals PtyLtd	1,3
P52/1196	WA	Expired	80%	0%	Jackson Minerals PtyLtd	1,3
P52/1199	WA	Expired	100%	0%		2
P52/1200	WA	Expired	100%	0%		2
P52/1314	WA	Granted	100%	0%		8
P52/1315	WA	Granted	100%	0%		8
P52/1316	WA	Granted	100%	100%		4,6
P52/1317	WA	Granted	100%	100%		2,6
P52/1318	WA	Granted	100%	100%		2,6
P52/1320	WA	Granted	100%	100%		2,6
P52/1321	WA	Granted	100%	100%		4,6
P52/1322	WA	Granted	100%	100%		4,6
P52/1323	WA	Granted	100%	100%		2,6
P52/1327	WA	Granted	100%	100%		4,6
P52/1365	WA	Granted	100%	100%		4,6
P52/1425	WA	Granted	100%	100%		2
P52/1427	WA	Expired	100%	0%
P52/1428	WA	Expired	100%	0%
P52/1429	WA	Granted	100%	100%		4
P52/1467	WA	Granted	100%	100%		2
P52/1468	WA	Granted	100%	100%		2
P52/1469	WA	Granted	100%	100%		2
P52/1470	WA	Granted	100%	100%		2
P52/1531	WA	Application	-	-
P52/1532	WA	Application	-	-
P52/1533	WA	Application	-	-
P52/1534	WA	Application	-	-
P52/1535	WA	Application	-	-

Quarterly Report 1 October 2016 – 31 December 2016

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Project/Tenement	State	Status	Interest startQtr	Interest endQtr	Co-holder	Notes
Frazer Range Project
E28/2475	WA	Granted	100%	100%		7
E28/2476	WA	Granted	100%	100%		7
Karonie Project
E28/2575	WA	Application	-	-		7
E28/2576	WA	Application	-	-		7
E28/2601	WA	Granted	0%	100%		7
E28/2619	WA	Application	-	-		7
E28/2643	WA	Application	-	-		7
E28/2657	WA	Application (in ballot)	-	-		7
E28/2667	WA	Application	-	-		7
E28/2668	WA	Application	-	-		7
Lachlan Projects
EL5878 - Overflow	NSW	Granted	0%	0%	ALY earningupto 80%	8
EL7941 - Overflow	NSW	Granted	0%	0%	ALY earningupto 80%	8
EL8267 - Overflow	NSW	Granted	0%	0%	ALY earningupto 80%	8
EL8356 - Overflow	NSW	Granted	0%	0%	ALY earningupto 80%	8
EL8192 - Eurow	NSW	Granted	0%	0%	ALY earningupto 80%	8
EL8318 - Girilambone	NSW	Granted	0%	0%	ALY earningupto 80%	8

Notes:

1. Jackson Minerals Pty Ltd, a subsidiary of Fe Ltd (ASX: FEL), retains a 20% interest free-carried to a decision to mine.

2. Independence Group NL (ASX: IGO) has a right to explore and earn a 70-80% interest (excludes iron ore) in whole or part tenements by sole funding a total of $6,000,000 of exploration expenditure, with Alchemy free-carried up to completion of a pre-feasibility study.

3. Billabong Gold Pty Ltd has a right to explore and earn a 70% interest in whole or part tenement by sole funding a total $1,200,000 on exploration expenditure over tenements or parts of tenements marked (3) & (4).

4. Billabong Gold Pty Ltd has a right to explore and earn an 80% interest in whole or part tenement by sole funding a total $1,200,000 on exploration expenditure over tenements or parts of tenements marked (3) & (4).

5. PepinNini Robinson Range Pty Ltd retains a 1% NSR on iron ore.

6. 100% minerals rights for all minerals, excluding iron ore; Carey Mining Iron Ore JV – Alchemy Resources 50%, Carey Mining 50% iron ore.

7. Goldtribe Corporation Pty Ltd, a subsidiary of Alchemy Resources Ltd, has 100% interest in the tenement.

8. Alchemy Resources (NSW) Pty Ltd, a subsidiary of Alchemy Resources Ltd, has a right to explore and earn up to an 80% interest in tenements by sole funding a total of $2,000,000 on exploration expenditure.

The information in this report that relates to Exploration Results is based on information compiled by Mr Leigh Ryan, who is the Managing Director of Alchemy Resources Limited. Mr Ryan is a Fellow of the Australian Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (‘JORC Code 2012’). Mr Ryan 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 at the Wilgeena Gold Deposit is based on information compiled by Simon Coxhell, who is an employee of CoxsRocks Pty Ltd, a consultant to Alchemy Resources Limited. Mr Coxhell is a Member of the Australian Institute of Geoscientists and the Australasian Institute of Mining and Metallurgy and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the Joint Ore Reserves Committee ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (‘JORC Code 2004’). Mr Coxhell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Alchemy confirms that the Indicated Mineral Resource at the Wilgeena Gold Deposit were prepared and first disclosed under JORC Code 2004. These have not been updated since to comply with JORC Code 2012 on the basis that the information has not materially changed since last reported on 22 October 2012. Alchemy is not aware of any new information or data that materially affects the information included in that announcement and that all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed.

Quarterly Report 1 October 2016 – 31 December 2016

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