Alkane Resources — Capital/Financing Update 2011

Oct 3, 2011

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RESOURCES LTD
ABN 35 000 689 216
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Corporate Profile

ASX ANNOUNCEMEN 4 October 2011

TOMINGLEY GOLD PROJECT UPDATE

• Recent RC drilling within the Caloma deposit, designed to improve resource status and increase ore reserves, intersected significant gold mineralisation.

• Results include:

HOLE NO.	INTERSECTION
PE715	13 metres grading 4.44g/t gold from 50 metres
including	4 metres grading 11.05g/t gold from 51 metres
PE716	17 metres grading 3.05g/t gold from 51 metres
including	3 metres grading 7.38g/t gold from 64 metres
PE726	23 metres grading 3.54g/t gold from 55 metres
including	2 metres grading 10.13g/t gold from 55 metres
and	2 metres grading 10.32g/t gold from 72 metres
PE727	7 metres grading 9.08g/t gold from 50 metres
and	2 metres grading 7.70g/t gold from 72 metres
and	23 metres grading 2.29g/t gold from 80 metres
including	4 metres grading 8.72g/t gold from 80 metres
PE739B	6 metres grading 16.69g/t gold from 36 metres
including	2 metres grading 34.50g/t gold from 37 metres
and	14 metres grading 4.48g/t gold from 139 metres
including	3 metres grading 14.66g/t gold from 146 metres
PE755	24 metres grading 1.81g/t gold from 114 metres
including	3 metres grading 4.08g/t gold from 132 metres
and	6 metres grading 4.33g/t gold from 198 metres
including	3 metres grading 7.62g/t gold from 201 metres
and	18 metres grading 2.03g/t gold from 237 metres
including	3 metres grading 8.29g/t gold from 237 metres
PE755	18 metres grading 4.14g/t gold from 6 metres

• The drilling data is being incorporated into the geological model and revised resources and reserves will be estimated.

• An early works program as part of the EPCM has commenced to accelerate the construction timetable when the program receives development approval.

Alkane Board

J S F Dunlop (Chairman) D I Chalmers (Managing Director) A D Lethlean (Director) I J Gandel (Director)

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

Contact

Ian Chalmers Managing Director Email: ichalmers@alkane.com.au

12 month share price range A$0.65 - 2.73

Market Cap 3 Oct 2011

~A$ 300 million

ASX Code: ALK 269 million shares

OTCQX Code: ANLKY ADR ratio 1:10 30 June 2011 Cash Cash ~A $18.3 million

No debt

Senior Management

Terry Ransted – Chief Geologist Mike Sutherland – GM NSW Tony Wright – Commercial Manager Alister MacDonald – DZP Marketing

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

65 Burswood Road, Burswood WA 6100, AUSTRALIA (PO Box 4384, Victoria Park WA 6979, AUSTRALIA) Telephone: +61 8 9227 5677 Facsimile: 61 8 9227 8178 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 northwest of Sydney and is based on three gold deposits, Wyoming One, Wyoming Three and Caloma located 14 kilometres north of the Company’s Peak Hill Gold Mine (Figures 1). Identified Mineral Resources total 660,000 ounces of gold ( ASX Reports dated 25March 2009 and 2 October 2009) and a Definitive Feasibility Study (DFS) was completed late 2010 ( ASX Report dated 13 December 2010) .

The TGP development is located immediately south of the town of Tomingley, and adjacent to the Newell Highway (Figure 2). The project will comprise three open cut and underground operations with an initial 1Mtpa ore feed to a standard gravity/CIL gold recovery plant, producing 50,000 to 60,000 ounces per year for 7.5 years.

Project Update

Resource – Reserve Drilling

As previously advised, RC drilling was completed to test the Caloma Two mineralisation, centred about 250 metres south of the planned Caloma open pit (Figure 2) and significant mineralisation was identified ( ASX Announcement 17 August 2011) . Further RC drilling, totalling 69 holes for 6,756 metres, also tested the Caloma deposit to raise Inferred Resources to Indicated and increase the ore reserves available for the mining model. This drilling also intersected significant mineralisation which is summarised in Table 1.

The drilling confirmed that the Caloma deposit consists of a series of shallow west dipping mineralised structures within the steep west dipping feldspar porphyry host (Figure 3). These structures trend northsouth and range in width from a few metres to in excess of 20 metres and appear to extend across the full width of the porphyry. The new drilling data is being incorporated into the geological model and revised resources and reserves will be estimated.

EPCM – Early Works Program

In an effort to accelerate the construction timetable, a number of programs have been initiated to minimise any potential delays caused by the acquisition of long lead time items. These include:

• exercise of an option to acquire a 1,000ML Water Access Licence; and

• placement of an order for the ball mill; and

• letting of a contract for the water pipeline; and

• preparation of an order for the power transformers; and

• issue of tender documents for the site civil works.

Environmental Assessment (EA)

The EA was submitted to the NSW Department of Planning and Infrastructure (DPI) in May 2011 to be tested for adequacy in meeting all departmental requirements. This process has been delayed through the late request for additional information but Alkane remains optimistic that it will be available for Public Exhibition in the near future. Alkane is also confident that Major Project Approval will be soon forthcoming.

Funding requirements for the project will be finalised once project approval from DPI has been received.

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Alkane Resources Ltd – ASX Announcement 4 October 2011

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Table 1: TGP – Caloma significant RC drill results, greater than 1.0g/t gold @ 20 September 2011

Hole No.	East	North	RL (m)	Azimuth	Dip	Intercept (m)	Grade (g/t Au)	Interval (m)	EOH (m)	Comments
PE709	614944	6394070	272	90°	60°	3	1.75	44 - 47	60	Caloma
and						7	3.99	51 - 58
PE711	614948	6394030	272	90°	60°	3	1.05	26 - 29	48	Caloma
and						1	1.50	43 - 44
PE713	614968	6394100	272	90°	60°	3*	2.56	12 - 15	60	Caloma
PE715	614908	6394200	272	90°	60°	13	4.44	50 - 63	114	Caloma
incl						4	11.05	51 - 55
PE716	614890	6394200	272	90°	60°	17	3.05	51 - 68	114	Caloma
incl						3	7.38	64 - 67
PE718	614967	6394280	272	90°	60°	7	1.30	86 - 93	96	Caloma
PE720	614858	6394400	272	90°	60°	1	1.15	98 - 99	126	Caloma
PE721	614847	6394320	272	90°	60°	3	1.29	97 - 100	120	Caloma
and						6	1.34	112 - 118
PE722	614810	6394320	272	90°	60°	2	3.76	94 - 96	150	Caloma
and						9	2.13	118 - 127
incl						2	6.36	123-125
PE723	614920	6394260	272	90°	60°	2	2.50	28 - 30	120	Caloma
PE724	614915	6394240	272	90°	60°	1	3.10	13 – 14	150	Caloma
and						12*	2.25	123 - 135
PE725	614920	6394230	272	90°	60°	4	1.00	29-33	126	Caloma
and						7	1.59	116 - 123
PE726	614870	6394230	272	90°	60°	23	3.54	55 - 78	144	Caloma
incl						2	10.13	55 - 57
incl						4	10.32	72 - 76
PE727	614830	6394230	272	92°	60°	7	9.08	50 – 57	150	Caloma
and						2	7.70	72 – 74
and						23	2.29	80 – 103
incl						4	8.72	80 - 84
and						8	1.80	115 – 123
PE729	614750	6394230	272	88°	65°	11	2.57	127 – 138	180	Caloma
PE730	614960	6394260	272	90°	60°	2	1.02	62 – 64	124	Caloma
and						8	1.57	86 – 94
incl						3	2.92	90 – 93
and						3	1.08	112-115
PE731	614950	6394220	272	90°	60°	2	1.9	12 – 14	84	Caloma
PE732	614950	6394230	272	90°	60°	1	7.59	65 – 66	103	Caloma
and						8	1.63	85 - 93
PE733	**614937 **	6394120	272	90°	60°	1	6.49	12 – 13	42	Caloma
PE737A	614868	6394200	272	90°	60°	3	1.70	70 – 73	126	Caloma
PE738B	614853	6394200	272	89°	60°	3	1.39	86 – 89	150	Caloma
and						2	1.31	126 - 128
and						9	6.85	133 - 142
PE739A	614817	6394200	272	89°	60°	3*	1.47	33 – 36	129	Shanked bit
PE739B	614820	6394200	272	87°	60°	6*	16.69	36 – 42	198	Re-drill
incl						2	34.50	37 - 39
and						14	4.48	139 - 153
incl						3	14.66	146 - 149
and						2	1.71	172 - 174
and						5	1.28	184 - 189
PE740	614985	6394070	272	90°	60°	8	1.12	52 – 60	62	Caloma

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Alkane Resources Ltd – ASX Announcement 4 October 2011

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Hole No.	East	North	RL (m)	Azimuth	Dip	Intercept (m)	Grade (g/t Au)	Interval (m)	EOH (m)	Comments
PE745A	614785	6394200	272	85°	60°	3*	2.04	57 – 60	216	Caloma
and						3*	4.63	84 - 87
and						3*	1.05	150 - 153
and						3	3.40	158 – 161
and						9	2.45	167 - 176
and						9	3.76	186 - 195
and						4	1.19	206 - 210
PE747	614950	6394280	272	88°	60°	2	1.82	52 – 54	132	Caloma
and						2	9.71	105 - 107
PE749	614940	6394260	272	90°	60°	2	1.09	72 – 74	132	Caloma
PE750	614965	6394240	272	90°	60°	8	2.37	87 – 95	120	Caloma
and						4	4.34	110 - 114
PE751	614830	6394240	272	91°	60°	2	2.15	88 – 90	102	Caloma
PE752	614995	6394240	272	90°	60°	2	1.24	84 – 86	108	Caloma
and						1	1.61	101 - 102
PE753	614880	6394160	272	90°	60°	4	1.93	47 – 51	156	Caloma
PE754	614965	6394070	272	90°	60°	1	1.11	42 – 43	72	Caloma
PE755	614740	6394160	272	91°	60°	6*	1.01	87 – 93	258	Caloma
and						24*	1.81	114 – 138
incl						3*	4.08	132 – 135
and						6*	4.33	198 - 204
incl						3*	7.62	201 – 204
and						18*	2.03	237 – 255
incl						3*	8.29	237 - 240
PE756	614925	6394070	272	90°	60°	3*	1.43	51 – 54	84	Caloma
and						3	1.35	63 - 66
PE757	614905	6394070	272	86°	60°	18	1.80	61 – 79	102	Caloma
PE758	614790	6394060	272	90°	60°	9*	1.55	9 – 18	102	Caloma
and						3*	1.20	27 - 30
and						3*	1.49	48 – 51
PE759	614765	6394060	272	90°	60°	18*	4.14	6 – 24	150	Caloma
PE760	614870	6394240	272	90°	60°	8*	1.61	103 - 111	180	Caloma
and						4	1.06	123 - 127
and						3	1.66	140 - 143
PE762	615020	6394240	272	90°	60°	3*	2.36	75 - 78	78	Caloma
PE763	614930	6394300	272	90°	60°	6*	1.49	51 - 57	65	Caloma
PE764	614982	6394220	272	90°	60°	2	1.00	83 - 85	102	Caloma
PE765	614885	6394070	272	86°	60°	12*	1.39	42 - 54	108	Caloma
incl						3*	4.11	51 - 54
and						29	1.96	61 - 90

Gold analysis of generally one metre RC riffle split samples (* 3m composite samples to be re-assayed) by 50g fire assay. True widths are approximately 95% of intersected intervals

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Alkane Resources Ltd – ASX Announcement 4 October 2011

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Competent Person

Unless otherwise advised above, 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

Disclaimer

This report contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth or other trend projections. Such statements are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors which are beyond the control of Alkane Resources Ltd. Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors. Nothing in this report should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.

BACKGROUND

Alkane is a multi commodity explorer and miner with its operations focused in the Central West of New South Wales , 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 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 included the construction and operation of a Demonstration Pilot Plant, and a development commitment is anticipated Q4 2011 leading to production possibly in 2014.

The Tomingley Gold Project currently has a 660,000 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 was completed in late 2010 and development financing options are well advanced.

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 is proceeding to complete a Bankable Feasibility Study for the development of the deposit.

Elsewhere in the region, at Galwadgere within the Wellington Project, Alkane has defined a 2 million tonne 1.00% copper Indicated Resource (details 2005 Annual Report) which is being reviewed for its development potential. Other advanced exploration projects have produced encouraging drill intercepts and new exploration targets have been identified at several more 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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Alkane Resources Ltd – ASX Announcement 4 October 2011

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Mineral Resource and Ore Reserve Statement October 2011

Dubbo Zirconia Project – Mineral Resources

Toongi Tonnage ZrO2		HfO2	Nb2O5 **Ta2O5 **	Nb2O5 **Ta2O5 **	Nb2O5 **Ta2O5 **	Y2O3	REO U3O8	REO U3O8
Deposit (Mt) (%)		(%)	(%) (%)			(%)	(%) (%)
Measured 35.70 1.96		0.04	0.46 0.03			0.14	0.75 0.014
Inferred 37.50 1.96		0.04	0.46 0.03			0.14	0.75 0.014
TOTAL 73.20 1.96		0.04	0.46 0.03			0.14	0.75 0.014
These Mineral Resources are based upon information compiled by Mr Terry	Ransted MAusIMM (Principal, Multi Metal Consultants Pty Ltd) who is a competent person as defined in the 2004
Edition of the Australasian Code for Reporting of Exploration Results, Mineral		Resources and Ore Reserves. Terry Ransted		consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears. The full details of methodology were given in the 2004 Annual Report.
Dubbo Zirconia Project –Ore Reserves
Toongi Tonnage ZrO2		HfO2	Nb2O5			Ta2O5	Y2O3 REO
Deposit (Mt) (%)		(%)	(%)			(%)	(%) (%)
Proved 8.07 1.91		0.04	0.46			0.03	0.14 0.75
These Ore Reserves are based upon information compiled by Mr Terry Ransted MAusIMM (Alkane Chief Geologist) who is a competent person as defined in the 2004 Edition of the Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.		The reserves were calculated at a nominal 1.0% ZrO2 cut off using costs derived						from vendor quotes and revenue
documented within this report. Terry Ransted consents to the inclusion in the report of the matters			based on his information in the form and context in which it appears. ASX 19 Aug 2011
Tomingley Gold Project – Mineral Resources
DEPOSIT MEASURED INDICATED			INFERRED				TOTAL
Top Cut Tonnage Grade Tonnage		Grade Tonnage Grade			Tonnage		Grade	Gold
2.5x2.5x5.0m model (t) (g/t) (t)		(g/t)	(t) (g/t)			(t)	(g/t)	(koz)
Wyoming One 2,227,000 2.07 882,000		2.25 3,478,000 1.62				6,587,000	1.86	393.2
Wyoming Three 630,000 1.87 58,000		1.73	154,000 1.25			842,000	1.75	47.3
Caloma 2,047,750 2.04 440,050		1.71 1,371,620 1.36				3,859,420	1.76	218.5
Total 4,904,750 2.03 1,380,050		2.06 5,003,620 **1.54 **				11,288,420	**1.82 **	658.9
These Mineral Resources are based upon information compiled by Mr Richard Lewis MAusIMM			(Lewis Mineral Resource Consultants Pty Ltd) who				is a competent person as defined in the 2004
Edition of the Australasian Code for Reporting of Exploration Results, Mineral		Resources and Ore Reserves. Richard Lewis		consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears. The full details of methodology are given in the ASX Report dated 25March						2009 and 2 October 2009.
Tomingley Gold Project –Ore Reserves
DEPOSIT PROVED		PROBABLE					TOTAL
Tonnage Grade		Tonnage	Grade Tonnage Grade					Ounces
(t) (g/t)		(t)	(g/t)			(t) (g/t)		(minable)
Wyoming One 1,700,000 1.6		200,000 1.3			1,900,000		1.6	94,500
Wyoming Three 500,000 1.6			0 0.0		500,000		1.6	28,100
Caloma 1,100,000 2.3		100,000 1.7			1,200,000		2.2	86,500
Total 3,300,000 1.8		300,000 1.5			3,600,000		1.8	209,100
These Ore Reserves are based upon information compiled under the guidance of		Mr Dean Basile	MAusIMM (Mining One Pty	Ltd) who is a competent person as				defined in the 2004 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Reserves and Resources are					estimated at an effective A$1,540 per ounce gold price. Dean Basile
consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
Peak HillGold Mine – Mineral Resources
DEPOSIT MEASURED INDICATED			INFERRED				TOTAL
0.5g/t gold cut off Tonnage Grade Tonnage		Grade	Tonnage Grade			Tonnage	Grade k oz
(t) (g/t) (t)		(g/t)	(t) (g/t)			(t)	(g/t)
Proprietary 9,440,000 1.35			1,830,000 0.98			11,270,000 1.29 467.4
3.0g/t gold cut off Tonnage Grade Tonnage		Grade	Tonnage Grade			Tonnage	Grade k oz
(t) (g/t) (t)		(g/t)	(t) (g/t)			(t)	(g/t)
Proprietary			810,000 4.40			810,000 4.40 114.6
These Mineral Resources are based upon information compiled by Mr Terry	Ransted MAusIMM (Principal, Multi Metal Consultants Pty Ltd) who is a competent person as defined in the 2004
Edition of the Australasian Code for Reporting of Exploration Results, Mineral		Resources and Ore Reserves. Terry Ransted		consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears. The full details of methodology were given in the 2004 Annual Report

Wellington – Galwadgere – Mineral Resources

DEPOSIT MEASURED		INDICATED
0.5% Cu cut off Tonnage Grade	Grade Tonnage	Grade	Grade
(t) (% Cu)	(g/t) (t)	(% Cu)	(g/t)
Galwadgere - -	2,090,000	0.99	0.3
These Mineral Resources are based upon information compiled by Mr Terry Ransted MAusIMM (Principal, Multi Metal Consultants Pty Ltd) who is a competent person as defined in the 2004
Edition of the Australasian Code for Reporting of Exploration Results, Mineral	Resources and Ore Reserves. Terry Ransted consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears. The full details of methodology were given in the 2005 Annual Report

Moorilda – McPhillamys (ODEJV) – Mineral Resources

DEPOSIT	INDICATED	INFERRED	TOTAL
McPhillamys	Tonnage Grade Grade	Tonnage Grade Grade	Tonnage Grade Grade	k oz	tonnes
0.3g/tAu cut-off	(t) (g/t) % Cu	(t) (g/t) % Cu	(t) (g/t) % Cu	gold	copper
Inner Ore Zone	51,650,000 1.10 0.07	23,504,000 1.19 0.07	75,154,000 1.13 0.07	2,723.6	55,091
Outer Ore Envelope	9,624,000 0.44 0.04	7,167,000 0.43 0.03	16,791,000 0.43 0.03	234.7	5,729
**Total **	61,274,000 0.99 **0.07 **	30,671,000 1.01 0.06	91,945,000 1.00 **0.07 **	2,958.3	60,820
These Mineral Resources are b	ased upon information compiled by Mr Richa	rd Lewis MAusIMM (Lewis Mineral Resource	Consulting Pty Ltd) who is a competent per	son as defined in	the 2004 ed on his
Edition of the Australasian Cod	e for Reporting of Exploration Results, Min	eral Resources and Ore Reserves. Richard Le	wis consents to the inclusion in the report of the matters bas
information in the form and con	text in which it appears. The full details of methodology were given in the ASX An+nouncem		ent 5 July 2010. Totals may not tally due to rounding.

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Alkane Resources Ltd – ASX Announcement 4 October 2011

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