ALCHEMY RESOURCES LIMITED — Interim / Quarterly Report 2021

Apr 29, 2021

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30 April 2021

BOARD AND MANAGEMENT

MR LINDSAY DUDFIELD NON-EXECUTIVE CHAIRMAN

QUARTERLY ACTIVITIES REPORT

For the period ending 31 March 2021

MR JAMES WILSON

CHIEF EXECUTIVE OFFICER

MS LIZA CARPENE NON-EXECUTIVE DIRECTOR

Highlights

KARONIE PROJECT (WA) – Gold

MR ANTHONY HO NON-EXECUTIVE DIRECTOR

MS JESSAMYN LYONS COMPANY SECRETARY

PROJECTS

LAKE REBECCA (ALY 100%)

KARONIE (ALY 100%)

LACHLAN (ALY 80%)

WEST LYNN (ALY 80%)

BRYAH BASIN (ALY 20%, TSX-V SGI 80%) BRYAH BASIN (ALY 20%, SFR 80%)

• Structural targeting review on the Karonie tenements has defined key target areas for testing in the upcoming exploration programs.

• Five (5) high level targets identified for further work including one new conceptual target immediately west of the Aldiss Mining Centre.

• Mineralisation corridor around advanced projects including Parmelia, KZ5 and Taupo remains a key focus.

LAKE REBECCA (WA) – Gold

• Alchemy was drawn first in two ballots for exploration licences E28/3035 and E28/3039 at its Lake Rebecca Project in Western Australia.

• The new tenements cover 21km[2] of highly prospective greenstone belts along strike to the north and west of Apollo Consolidated’s (ASX: AOP) Rebecca Project which currently hosts a resource of >1Moz Au.

• Historical exploration focussed on wide spaced regional soil geochemistry and limited drilling on parts of the tenements.

BRYAH BASIN PROJECT (WA) – Gold / Base Metals

Sandfire Resources JV:

• Moving Loop Electro Magnetic Survey underway at Bulgullan Bore. Aircore drilling on the 800m x 100m program due to recommence in the next quarter.

Superior Gold JV:

• Detailed work is ongoing to optimise several potential open pit sources and to finalise resources and scheduling, including the Hermes and Hermes South Pits.

• Heritage Surveys and Permitting on the Wilgeena-Hermes proposed haul road and mining footprint is expected to commence in Q2CY2021 as Superior looks to include this deposit in its pipeline of near-term development activities.

CORPORATE

• Appointment of Jessamyn Lyons as Company Secretary, effective 3 March 2021.

• $1.45M cash at hand at 31 March 2021.

Alchemy Resources Limited (ASX: ALY ; “ Alchemy ” or the “ Company ”) is an Australian exploration company focused on growth through the discovery and development of gold, base metal and nickel-cobalt resources within Australia ( Figure 1 ). Alchemy has built a significant land package in the Carosue Dam - Karonie greenstone belt in the Eastern Goldfields region in Western Australia, and has earned an 80% interest in the Lachlan/Cobar Basin Projects in New South Wales. Alchemy also maintains its interest in the Bryah Basin Project in the gold and base metal-rich Gascoyne region of Western Australia, where Superior Gold Inc. (TSX-V: SGI; “Superior” ), and Sandfire Resources Limited (ASX: SFR; “Sandfire” ) are continuing to advance gold and base metal exploration, respectively.

The Company won the ballot for two key exploration licence applications which will form part of the Lake Rebecca Project. The applications sit along strike from Apollo Consolidated (ASX: AOP) and to the east of Northern Star Resources (ASX: NST) Carosue Dam operations.

Alchemy completed the earn-in requirements for the Lachlan gold and base metals tenements in New South Wales in February 2021. The Company has increased its ownership to 80% (from 51%) by spending a total of $2m before 30 May 2021 under the terms of the agreement.

A structural review of the Karonie tenements in Western Australia was undertaken, aimed at defining key target areas for testing in the upcoming exploration programs. Five (5) high level targets were identified for further work including one (1) new conceptual target.

Within the Bryah Basin Project, Sandfire commenced a Moving Loop Electromagnetic Survey (MLEM) at Bulgullan Bore Prospect. Aircore drilling on the 800m x 100m program which was partially completed in the December Quarter is due to recommence next quarter with approximately 600 drillholes planned.

No field work was carried out on the Superior Gold Joint Venture tenements; however, the Company continues to complete preliminary optimisation and scheduling. Heritage surveys for the Wilgeena-Hermes proposed haul road and mining footprint are due to commence in the next quarter as Superior looks to include this deposit in its pipeline of near-term development activities.

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Figure 1 : Alchemy Resources Project Location Plan

Quarterly Activities Report

2

1 January 2021 – 31 March 2021

Karonie Project (WA) (Alchemy 100%)

The Karonie Project now includes twelve exploration licences and three exploration licence applications covering 1,179km[2] of highly prospective mineralised structures within Kurnalpi Terrain greenstones 100km east of Kalgoorlie ( Figure 2 ). The tenements are located along strike of Silver Lake Resources (ASX: SLR) Aldiss Mining Centre (reserves/resources of over 585,000oz @ 1.9g/t Au)[1] , are within 50km of Silver Lake’s Randall’s processing plant, and cover 38km of the under-explored, gold endowed Claypan Shear Zone commencing just 12km along strike to the south of Breaker Resources NL’s (ASX: BRB) Bombora deposit (resource of 1.37Moz @ 1.5g/t Au)[2] .

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Figure 2 : Karonie Project tenements, deposits, prospects and interpreted major structures over published geology

During the quarter, the Company conducted a structural targeting review of the Karonie tenements which was undertaken by Model Earth Pty Ltd (Figure 3). The review focussed on generating “camp scale” prospective areas for follow-up (in addition to existing advanced target areas at Parmelia, KZ5 and Taupo). The outcome of the study highlighted that Karonie is highly prospective, having regional-scale flexures on both the Keith Kilkenny and Claypan shear zones and proximity to nearby large scale >1Moz gold deposits. Five high level targets were identified for further work including Warrior-Gilmore, Challenger-Esplanade, Manhattan and two new conceptual targets at Karonie West and a new target in the southern most extent of the Karonie tenement package. Best historic results from Challenger included 10m at 1.46 g/t gold (from 128m) in ISRC10351[3] and previous high-grade intercepts from Esplanade included 1m at 21.35g/t gold (from 133m) in LPRC0181[3]

1 Refer to Silver Lake Resources Limited’s ASX announcement dated 19 August 2020. CP: A. Awan

2 Refer to Breaker Resources Limited’s ASX announcement dated 29 April 2021. CP’s: T. Sanders, A. Barker, N. Fogden.

3 Refer Alchemy Resources ASX Announcement 24 May 2016

Quarterly Activities Report

3

1 January 2021 – 31 March 2021

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Figure 3: Karonie structural targeting review showing targets generated by the recent study (in red)

Quarterly Activities Report 1 January 2021 – 31 March 2021

4

Lake Rebecca Project (WA) (Alchemy 100%)

The newly formed Lake Rebecca Project includes ten highly prospective, exploration licence applications covering 674km[2] of prospective greenstones, internal granites, and known gold bearing structures to the southeast of the Northern Star Resources (ASX: NST) 4.6Moz Carosue Dam gold deposit[4] , along strike to the north of the Breaker Resources Limited (ASX: BRB) 1.37Moz Bombora gold deposit[5] , and immediately west of the Apollo Consolidated Limited (ASX: AOP) 1.1Moz Rebecca, Duchess and Duke deposits[6] in the Eastern Goldfields, WA ( Figure 4 ).

The Carosue Dam deposit is located within the Carosue Basin immediately east of the east dipping Keith Kilkenny fault, which is interpreted to trend through the western tenements of the Lake Rebecca Gold Project (Figure 4) The tenements also cover part of the Claypan Shear Zone which hosts Breaker’s Bombora deposit, and parts of a western splay off the Pinjin Fault. Despite the highly prospective geological setting, previous drilling within the licences has been variable due to the amount of transported cover.

During the quarter, the Company was drawn first in two ballots for two key exploration licence applications (E28/3035 and E28/3039) which will form part of Alchemy’s Lake Rebecca Project. The applications sit along strike from Apollo Consolidated (ASX: AOP) Rebecca Project and to the east of Northern Star Resources (ASX: NST) Carosue Dam operations.

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Figure 4: Lake Rebecca tenements (under application in blue) and recent tenements won by ballot (in red)

4 Refer to Saracen Mineral Holdings Limited ASX announcement dated 1 August 2020

5 Refer to Breaker Resources Limited ASX announcement dated 29 April 2021.

6 Refer to Apollo Consolidated Limited ASX announcement dated 20 April 2021

Quarterly Activities Report

5

1 January 2021 – 31 March 2021

Lachlan / Cobar Basin Projects (NSW) (Alchemy 80%)

The Lachlan Projects cover an area of 674km[2] of the Central Lachlan Orogen in NSW and comprise three project areas prospective for Cobar-style epithermal gold and base metals and copper-gold porphyry mineralisation.

The Lachlan / Cobar Basin Projects consist of the Overflow Gold-Base Metal Project, the Yellow Mountain CopperGold Project, the West Lynn Nickel-Cobalt-Alumina Project, and the Eurow Copper-Gold Project, each containing multiple drill ready gold and/or base metal and/or nickel-cobalt targets. The projects form part of a Farm-In and Joint Venture with Heron Resources Ltd (ASX: HRR ) and are proximal to high profile mining centres in the Cobar Basin and central Lachlan Fold Belt, including Hera/Nymagee (Aurelia Metals Ltd - ASX: AMI ), Mallee Bull/Wagga Tank/Southern Nights (Peel Mining Ltd - ASX: PEX ), Tritton (Aeris Resources Ltd - ASX: AIS ) and the Parkes mining centre.

The Company announced that it has now earned an 80% interest in the Lachlan gold and base metals projects (“Lachlan Projects”) in New South Wales from Heron Resources (ASX: HRR) after meeting the expenditure requirements of spending $2m before 30 May 2021 under the terms of the agreement. No field work was conducted during the quarter. A comprehensive data review is underway.

Bryah Basin Project (WA) (Alchemy 20%)

Base Metals Exploration (Sandfire 70-80%)

Sandfire has earned an 80% interest in Alchemy’s 100% owned tenements and a 70% interest in the tenements jointly owned by Alchemy and Jackson Minerals Pty Ltd (a wholly owned subsidiary of Fe Ltd (ASX: FEL )) (Figure 5) . Alchemy remains 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, with the deferred amount to be repaid from 50% of Alchemy’s share of free cash flow earned through production.

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Figure 5: Bryah Basin Project – Sandfire Resources JV and Billabong Gold JV areas over interpreted geology.

Quarterly Activities Report 1 January 2021 – 31 March 2021

6

A Moving Loop Electro Magnetic (MLEM) survey continued at Bulgullan Bore during the quarter. Aircore drilling is due to recommence in the next quarter with approximately 600 holes in the first pass 800x100m program with 115 holes already completed in the December quarter. Drilling targeted copper-gold mineralisation within the Narracoota volcanics and the Ravelstone Formation sediments to the south of the Horseshoe Lights copper mine. No significant results were reported.

Gold Exploration (Superior Gold 70-80%)

Exploration of Alchemy’s tenements that cover the gold prospective part of the Bryah Basin Project (blue outline in Figure 5 ) continued under a farm-in and joint venture arrangement with Billabong Gold Pty Ltd (“ Billabong Gold JV ”), a subsidiary of Superior Gold Inc (TSX-V: SGI “ Superior ”). Under the terms of the Billabong Gold JV, Alchemy’s interest is carried on an interest-free deferred basis to production, with Alchemy to repay the deferred amount from 50% of its share of free cash flow from production following the commencement of mining.

The Billabong Gold JV contains a JORC 2012 compliant resource of 2.2Mt @ 1.6g/t for 114,000oz Au at the Hermes South deposit[7] . Hermes South is located approximately 20km south-southwest of the Hermes mining operation, and 65km southwest of the Plutonic gold mine (Figure 5) . The mineralisation remains open at depth and there is excellent potential for further drilling to expand the area of gold mineralisation and add to the known resource. Alchemy is confident that the Hermes South deposit will become part of the production profile for the Plutonic Gold Operation with design and scheduling work for Hermes South continuing and mining expected to commence in the first half of 2021.

No field work was completed during the quarter. Detailed work is ongoing to optimise several potential open pit sources, including the Hermes and Hermes South Pits, and to finalise resources and scheduling. Heritage surveys for the Wilgeena-Hermes proposed haul road and mining footprint are due to commence in the next quarter as Superior looks to include this deposit in its pipeline of near-term development activities.

Eurow Copper-Gold Project (167km[2] )

No work was completed during the quarter.

West Lynn Ni-Co-Alumina Project (100km[2] )

No work was completed during the quarter.

Girilambone Copper Project (129km[2] )

No work was completed during the quarter.

Woodsreef Copper-Gold-Nickel-Cobalt Project (281km[2] )

No work was completed during the quarter.

Corporate and Financial Commentary

Former Company Secretary Mr Bernard Crawford resigned on 3 March 2021. The Company appointed Ms Jessamyn Lyons as Company Secretary effective 3 March 2021.

The Quarterly Cashflow Report (Appendix 5B) for the current period provides an overview of the Company’s financial activities. Alchemy had $1.45M cash at hand at 31 March 2021. Exploration expenditure for the reporting period was $82,000. There were no mining production and development activities to report during the period. The total amount paid to directors of the entity and their associates in the period (item 6.1 of the Appendix 5B) was $95,000 and includes salary, directors’ fees, and superannuation.

7 Refer to Alchemy Resources Limited’s ASX Announcement dated 8 May 2019: CP: L. Ryan

Quarterly Activities Report 1 January 2021 – 31 March 2021

7

This announcement has been approved for release by the board.

Please direct enquiries to Alchemy’s authorised representative:

Mr James Wilson – Chief Executive Officer Telephone: +61 8 9481 4400 Email: james@alchemyresources.com.au

Quarterly Activities Report 1 January 2021 – 31 March 2021

8

APPENDIX 1 Schedule of Mining Tenements as at 31 March 2021

Project/Tenement	State	Status	Interest startQtr	Interest endQtr	Co-holder	Notes
Bryah Basin Project
E52/1668	WA	Granted	10%	10%	Jackson/Billabong /Sandfire	1,2,3
E52/1678	WA	Granted	10%	10%	Jackson/Billabong /Sandfire	1,2,3
E52/1722	WA	Granted	10%	10%	Jackson/Sandfire	1,2
E52/1723-I	WA	Granted	20%	20%	Billabong /Sandfire	2,4,5
E52/1730	WA	Granted	10%	10%	Jackson/Billabong /Sandfire	1,2,3
E52/1731	WA	Granted	20%	20%	Billabong /Sandfire	2,4
E52/1810	WA	Granted	20%	20%	Sandfire	2
E52/1852	WA	Granted	20%	20%	Billabong	4
E52/2360	WA	Granted	20%	20%	Sandfire	2,6
E52/2362	WA	Granted	20%	20%	Billabong /Sandfire	2,4,6
E52/3292	WA	Granted	20%	20%	Sandfire	2
E52/3358	WA	Granted	20%	20%	Sandfire	2
E52/3359	WA	Granted	20%	20%	Sandfire	2
E52/3405	WA	Granted	20%	20%	Billabong /Sandfire	2,4
E52/3406	WA	Granted	20%	20%	Billabong /Sandfire	2,4
E52/3407	WA	Granted	20%	20%	Sandfire	2
E52/3408	WA	Granted	20%	20%	Billabong /Sandfire	2,4
E52/3409	WA	Granted	20%	20%	Sandfire	2
E52/3472	WA	Granted	20%	20%	Sandfire	2
E52/3475	WA	Granted	20%	20%	Sandfire	2
M52/722	WA	Granted	20%	20%	Billabong /Sandfire	2,4,6
M52/723	WA	Granted	20%	20%	Billabong /Sandfire	2,4,6
M52/737	WA	Granted	20%	20%	Billabong	4,6
M52/795	WA	Granted	20%	20%	Billabong /Sandfire	2,4,6
M52/844-I	WA	Granted	20%	20%	Sandfire	2,6
M52/1049	WA	Granted	20%	20%	Billabong	4,6
P52/1425	WA	Granted	20%	20%	Sandfire	2
P52/1427	WA	Granted	20%	20%	Sandfire	2
P52/1428	WA	Granted	20%	20%	Sandfire	2
P52/1429	WA	Granted	20%	20%	Billabong	4
P52/1467	WA	Granted	20%	20%	Sandfire	2
P52/1468	WA	Granted	20%	20%	Sandfire	2
P52/1469	WA	Granted	20%	20%	Sandfire	2
P52/1470	WA	Granted	20%	20%	Sandfire	2
P52/1531	WA	Granted	20%	20%	Sandfire	2
P52/1532	WA	Granted	20%	20%	Sandfire	2
P52/1533	WA	Granted	20%	20%	Sandfire	2
P52/1534	WA	Granted	20%	20%	Sandfire	2
P52/1535	WA	Granted	20%	20%	Sandfire	2
P52/1538	WA	Granted	10%	10%	Jackson/Billabong	1,4
P52/1539	WA	Granted	10%	10%	Jackson/Billabong	1,4
P52/1540	WA	Granted	20%	20%	Sandfire	2
P52/1541	WA	Granted	20%	20%	Sandfire	2
P52/1565	WA	Granted	20%	20%	Sandfire	2
P52/1566	WA	Granted	20%	20%	Sandfire	2
P52/1567	WA	Granted	20%	20%	Sandfire	2
P52/1568	WA	Granted	20%	20%	Sandfire	2
P52/1572	WA	Granted	20%	20%	Sandfire	2,6
P52/1577	WA	Granted	20%	20%	Billabong	4,6

Quarterly Activities Report 1 January 2021 – 31 March 2021

9

Project/Tenement	State	Status	Interest startQtr	Interest endQtr	Co-holder	Notes
Karonie Project
E28/2575	WA	Granted	100%	100%		7
E28/2576	WA	Granted	100%	100%		7
E28/2601	WA	Granted	100%	100%		7
E28/2619	WA	Granted	100%	100%		7
E28/2643	WA	Granted	100%	100%		7
E28/2657	WA	Granted	100%	100%		7
E28/2667	WA	Granted	100%	100%		7
E28/2668	WA	Granted	100%	100%		7
E28/2681	WA	Granted	100%	100%		7
E28/2752	WA	Granted	100%	100%		7
E28/2880	WA	Granted	100%	100%		7
E28/2940	WA	Granted	100%	100%		7
E28/2976	WA	Appl.	-	-		7
E28/3032	WA	Appl.(contest)	-	-		7
Lake Rebecca Project
E28/3006	WA	Appl.	-	-		7
E28/3008	WA	Appl.	-	-		7
E28/3010	WA	Appl.	-	-		7
E28/3012	WA	Appl.	-	-		7
E28/3035	WA	Appl.(contest)	-	-		7
E28/3039	WA	Appl.(contest)	-	-		7
E28/3048	WA	Appl.(contest)	-	-		7
E28/3059	WA	Appl.	-	-		7
E28/3063	WA	Appl.	-	-		7
E28/3064	WA	Appl.	-	-		7
Lachlan Projects
EL5878 - Overflow	NSW	Granted	20%	80%	Heron Resources	8
EL7941 - Overflow	NSW	Granted	20%	80%	Heron Resources	8
EL8267 - Overflow Nth	NSW	Granted	20%	80%	Heron Resources	8
EL8356 - Yellow Mtn	NSW	Granted	20%	80%	Heron Resources	8
EL8192 - Eurow	NSW	Granted	20%	80%	Heron Resources	8
EL8318 - Girilambone	NSW	Granted	20%	80%	Heron Resources	8
EL8631 - West Lynn	NSW	Granted	20%	80%	Heron Resources	8
EL8711 - Woodsreef	NSW	Granted	20%	80%	Heron Resources	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. Sandfire Resources NL (ASX: SFR) holds a 70-80% interest (excludes iron ore) in whole or part tenements, with Alchemy free-carried up to completion of a pre-feasibility study.

3. Billabong Gold Pty Ltd holds a 70% interest in whole or part of tenement.

4. Billabong Gold Pty Ltd holds an 80% interest in whole or part of tenement.

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

6. Carey Mining Iron Ore JV: Alchemy has 100% mineral rights for all minerals, excluding iron ore where ownership is Alchemy 50% / Carey Mining 50%.

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

8. Alchemy Resources (NSW) Pty Ltd, a subsidiary of Alchemy Resources Ltd, holds a 80% interest with Heron Resources owning the remaining 20%.

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Lindsay Dudfield, who is the Non-Executive Chairman of Alchemy Resources Limited and holds shares and options in the Company. Mr Dudfield is a Member of the Australasian Institute of Mining and Metallurgy and a Member 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 Dudfield 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 Hermes South Gold Deposit is based on information compiled by Mr Stephen Hyland, a geological consultant working for Superior Gold Inc. Mr Hyland is a Fellow of 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 2012 Edition of the Joint Ore Reserves Committee ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (‘JORC Code 2012’). Mr Hyland consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.”

Forward Looking Statements

This report may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Alchemy. Actual values, results or events may be materially different to those expressed or implied in this report. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward-looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under any applicable law and the ASX Listing Rules, Alchemy does not undertake any obligation to update or revise any information or any of the forward-looking statements in this presentation of any changes in events, conditions or circumstances on which any such forward looking statement is based.

Quarterly Activities Report

10

1 January 2021 – 31 March 2021