Alkane Resources — Capital/Financing Update 2009

Jun 3, 2009

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RESOURCES LTD
ABN 35 000 689 216
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ASX ANNOUNCEMENT – 4 June 2009

Corporate Profile

Alkane Board

J. S. F. Dunlop (Chairman) D. I. Chalmers (Managing Dir)

TOMINGLEY GOLD PROJECT PIT INFILL DRILLING

A. D. Lethlean (Director)

I. J. Gandel (Director)

I. R. Cornelius (Director)

• 33 RC holes have been completed within the conceptual pit shell of the Caloma deposit to upgrade the resource status. Results have been received for 20 holes.

• Selected results include:

PE 418 19 metres grading 2.81g/t gold from 137 metres including 7 metres grading 5.54g/t gold from 143 metres PE 419 10 metres grading 4.49g/t gold from 119 metres including 5 metres grading 7.89g/t gold from 122 metres PE 423 12 metres grading 3.00g/t gold from 57 metres including 4 metres grading 6.90g/t gold from 60 metres and 19 metres grading 3.27g/t gold from 77 metres including 4 metres grading 10.28g/t gold from 83 metres WY 425 3 metres grading 4.85g/t gold from 178 metres also 4 metres grading 15.42g/t gold from 186 metres WY 428 6 metres grading 3.98g/t gold from 30 metres and 3 metres grading 9.60g/t gold from 89 metres WY 429 12 metres grading 2.76g/t gold from 51 metres including 6 metres grading 5.00g/t gold from 51 metres

L. A. Colless (Joint Secretary) K. E. Brown (Joint Secretary)

Contact

Ian Chalmers Managing Director 96 Parry Street PERTH WA 6000 Telephone +61 8 9328 9411 Facsimile +61 8 9227 6011 Email ichalmers@alkane.com.au Web – www.alkane.com.au

12 month share price range

A$0.515 - $0.15

Market Cap 3 June 09

~A$82 million

ASX Code: ALK

244.6 million shares (March 09)

March 2009 Cash

~ $6.2 million

No debt

• The Definitive Feasibility Study is progressing and remains on schedule for completion early October.

Media Relations

Westbrook Communications Level 1, 17 Castlereagh Street SYDNEY NSW 2000

Telephone +61 2 9231 0922 Facsimile +61 2 9231 0131 Web – www.westbrookfin.com.au

Registered Office: 129 Edward Street Perth WA 6000 Telephone: 61 8 9227 5677 Facsimile: 61 8 9227 8178 PO Box 8178 Perth Business Centre Western Australia 6849 www.alkane.com.au mail@alkane.com.au

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Tomingley Gold Project (TGP)

The TGP is located in the Central West of New South Wales, about 400 kilometres west of Sydney. The Project is centred on three gold deposits located 14 kilometres north of the Company’s Peak Hill Gold Mine. The TGP is located in an area of substantial existing infrastructure with the major Newell Highway transecting the project, linking a number of towns with a regional population base exceeding 150,000 (figure 1). No camp facilities are required and the workforce can be sourced locally. A natural gas pipeline and railway are located five kilometres west of Tomingley, and power is available from the New South Wales state grid.

Exploration drilling discovered the Wyoming One deposit in 2002 and Wyoming Three in 2003. The Caloma deposit was recognised in 2006 with resource drilling completed in 2008 and Identified Mineral Resources currently stand at 840,000 ounces (full details in 2008 Annual Report and ASX release of 25 March 2009).

Resource Drilling - Caloma

As part of the Definitive Feasibility Study preliminary open pit mine planning is proceeding (figure 2) and a reverse circulation (RC) drilling program of 33 holes (3548m) was completed in May to raise some of the Inferred Resources within the Caloma pit shell to Indicated status. The drilling program focussed on the northern 100m section of the resource but a few holes also tested other small sections of the deposit.

Results have been received for 20 holes and are summarised in Table 1. The results have confirmed continuity of the geological model comprising shallow west dipping mineralised zones within the Wyoming style feldspar porphyry host which is located at the contact of pelitic sediments in the west and an andesitic volcanic and volcaniclastic sequence to the east (figures 3).

Geotechnical and Site Sterilisation Drilling

A program of approximately 20 core holes is in progress to develop a geotechnical understanding of the proposed open pit walls. Shallow site core drilling and pitting is also in progress to provide infrastructure support and environmental data.

Air core sterilisation drilling of the site will commence next week.

Definitive Feasibility Study (DFS)

The DFS program is continuing, with capital and operating cost data being collated, and remains on schedule for completion early October. All aspects of the Environmental Assessment (EA) are in progress.

Mr D I Chalmers, FAusIMM, FAIG, (director of the Company) has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ian Chalmers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Alkane Resources Ltd – ASX Announcement

4 June 2009

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Table 1: TGP - Caloma RC results greater than 1.0g/t gold @ 4 June 09

Hole No	East	North	RL (m)	**Azimuth **	Inclin	Intcpt (m)	Grade (g/t Au)	Interval (m)	EOH (m)	Comments
PE 411	**614920 **	**6394000 **	271	**090° **	60°	1	1.49	48 – 49	**102 **
also						1	**1.30 **	61 – 62
PE 413	**615000 **	**6394080 **	271	**090° **	60°	1	0.96	18 – 19	48
also						2	**1.02 **	**30 -32 **
PE 416	**614895 **	**6394300 **	270	**090° **	60°	11	2.09	19 –30	60
PE 417	**614930 **	**6394160 **	270	**090° **	60°	4	2.36	14 – 18	**102 **
also						6	1.42	27 –33
PE 418	614720	6394180	270	090°	60°	2	1.18	126 – 128	174
also						19	**2.81 **	137 - 156
**incl **						4	3.55	138 – 142
and						7	**5.54 **	143 – 150
PE 419	**614710 **	**6394160 **	270	**090° **	60°	10	4.49	119 – 129	150
**incl **						5	7.89	122 – 127
also						3	0.96	**136 - 139 **
also						3	4.50	144 - 147
PE 421	**614930 **	**6394220 **	270	**090° **	60°	7	3.95	31 –38	96
PE 422	**614890 **	**6394220 **	270	**090° **	60°	4	3.33	67 – 71	114
PE 423	**614850 **	**6394220 **	270	**090° **	60°	12	1.29	33 – 45	138
also						12	3.00	57 -69
**incl **						4	6.90	60 - 64
also						19	3.27	77 -96
**incl **						4	10.28	**83 -87 **
also						6	3.13	111 – 117
also						1	0.95	120 – 121
PE 424	**614810 **	**6394220 **	270	**090° **	60°	2	5.28	**89 –91 **	160
also						7	3.18	97 - 104
also						5	1.27	133 - 138
also						2	**1.07 **	151 - 153
PE 425	**614750 **	**6394100 **	270	**090° **	60°	3	1.18	156 – 158	198
also						6	2.86	168 - 174
also						3	4.85	**178 - 181 **
also						4	15.42	186 – 190
PE 426	**614960 **	**6394220 **	270	**090° **	60°	3	1.38	14 – 17	68
also						1	2.19	**60 -61 **
PE 428	**614930 **	**6394220 **	270	**090° **	60°	3	1.12	12 – 15	96
also						6	3.98	30 -36
also						3	2.30	**81 -84 **
also						3	9.60	89 -92
PE 429	**614890 **	**6394240 **	270	**090° **	60°	12	2.76	51 –63	120
**incl **						6	5.00	51 -56
PE 430	**614850 **	**6394240 **	270	**090° **	60°	2	3.65	68 – 70	144
also						3	1.24	117 - 120

Gold analysis of one metre split RC samples and some three metre composite samples by 50g fire assay. True widths are approx 90 - 95%.

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Alkane Resources Ltd – ASX Announcement 4 June 2009

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BACKGROUND

Alkane is a multi commodity explorer and miner with its operations focussed in the Central West of New South Wales , centred about 400km northwest of Sydney. Over several years, including experience in developing the Peak Hill Gold Mine, Alkane has built a substantial resource base and is proceeding towards several developments. Excluding the TGP , other major projects are:

The Dubbo Zirconia Project is based upon a world class resource of the metals zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements. The deposit also contains significant uranium. Over several years Alkane has developed a flow sheet which can recover a variety of products which have expanding applications in electronics, ceramics, catalysts, special alloys and glasses, fuel cells, special rechargeable batteries and permanent magnets, nuclear power and as environmental drying agents. Following a $3.3 million Commercial Ready Grant from AusIndustry in 2006, the feasibility study was reactivated. The study includes the construction and operation of a Demonstration Pilot Plant, and a development commitment is anticipated in 2010.

Near Orange, the Company has a joint venture ( ODEJV ) with Newmont, one of the world’s largest gold miners, which resulted in the discovery in 2006 of a potentially significant gold deposit at McPhillamys within the Moorilda Project . This discovery included intersections of 123 metres grading 1.96g/t gold and 77 metres at 1.65g/t gold within a 300 metre by 200 metre mineralised zone. Recent diamond drilling has confirmed the potential of the project to host a major gold system with an intersection in KPD003 of 366 metres grading 1.85g/t gold.

Elsewhere within the region, Alkane has defined a 2 million tonne 1.00% copper Indicated Resource (details 2007 Annual Report) which is being reviewed for its development potential at Galwadgere within the Wellington Project , and several other advanced exploration projects with encouraging drill intercepts.

In Western Australia the Company holds 9 million shares (15.15%) of listed iron ore explorer BC Iron Limited and a diluting 25% residual interest in a nickel sulphide joint venture with Xstrata Nickel (Jubilee) near Leinster .

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Alkane Resources Ltd – ASX Announcement

4 June 2009

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