Alkane Resources — Capital/Financing Update 2010

Nov 1, 2010

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----- Start of picture text ----- RESOURCES LTDABN 35 000 689 216----- End of picture text -----

ASX ANNOUNCEMENT – 2 NOVEMBER 2010

Corporate Profile

Alkane Board

SPONSORED AMERICAN DEPOSITARY RECEIPT (ADR) PROGRAM

Australian multi-commodity explorer and miner Alkane Resources Ltd (ASX: ALK) is pleased to announce the establishment of a sponsored American Depositary Receipt (ADR) Program.

The establishment of a sponsored ADR Program creates a broader secondary market for ALK's listed securities, particularly in the United States and enables US investors to trade in ALK securities without the hazards of cross-currency transactions.

The ADRs will be tradeable via licensed US brokers in the ordinary course of trading in the Over-The Counter (OTC) Market in the United States.

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

I. J. Gandel

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$1.19 - $0.23

Market Cap 1 Nov 2010

ALK has appointed The Bank of New York Mellon (BNYM) as the Depositary Bank to establish the ADR facility.

~A$184 million

ASX Code: ALK 249 million shares

Particulars of the United States sponsored ADR Program are as follows:

September 30 2010

U.S. Trading Platform:	OTC
Ticker Symbol:	ANLKY
Ration:	1:10 (1 ADR : 10 Ordinary shares

Any queries in relation to the ADR facility can be directed to BNYM at www.adrbnymellon.com.

Cash ~ $6.8 million

No debt

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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BACKGROUND

Alkane is a multi commodity explorer and miner with its operations focussed in the Central West of New South Wales , centred about 400 kilometres 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:

The Tomingley Gold Project currently has an 840,000 ounce gold resource within the Wyoming and Caloma deposits , (full details are in the 2008 Annual Report and the ASX announcements of 2 October and 16 December 2009). A feasibility study for the development of the project with potential 50,000 to 60,000 ounce per annum production is anticipated to be completed by late 2010.

The Dubbo Zirconia Project is based upon a world class resource of the metals zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements. 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 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 mid 2011.

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 significant gold deposit at McPhillamys within the Moorilda Project . An initial resource of Indicated plus Inferred resources containing 2.96 million ounces of gold and 60,000 tonnes of copper has been defined (full details ASX announcement of 5 July 2010) . Newmont are proceeding to complete a Bankable Feasibility Study for the development of the deposit.

Elsewhere within the region, Alkane has defined a 2 million tonne 1.00% copper Indicated Resource (details 2005 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. New exploration targets have been identified at several other locations.

In Western Australia the Company hold a diluting 23% residual interest in a nickel sulphide joint venture with Xstrata Nickel (Jubilee) near Leinster .

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The information in this report that relates to exploration results, mineral resources and ore reserves is based on information compiled by Mr D I Chalmers, FAusIMM, FAIG, (director of the Company who 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 a 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 this 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

2 November 2010