Alkane Resources — Capital/Financing Update 2012

Feb 29, 2012

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

Alkane Resources Ltd

ABN

35 000 689 216

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to be Fully paid ordinary shares issued 2 Number of[+] securities issued or to Up to approximately 26,902,815 fully paid be issued (if known) or maximum ordinary shares under the non-renounceable pro number which may be issued rata entitlement offer announced to ASX on 1 March 2012 ( Entitlement Offer ).

3 Principal terms of the[+] securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

Fully paid ordinary shares

• See chapter 19 for defined terms.

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4 Do the[+] securities rank equally in all Yes. The fully paid ordinary shares will rank respects from the date of allotment equally in all respects with existing fully paid with an existing[+] class of quoted +securities? ordinary shares from the date of issue. If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

5 Issue price or consideration $1.10 per fully paid ordinary share 6 Purpose of the issue The proceeds of the Entitlement Offer will be (If issued as consideration for the applied towards the construction and acquisition of assets, clearly identify commissioning of the Tomingley Gold Project, those assets) preparation of an Environmental Impact Statement and continuing development of the Dubbo Zirconia Project, working capital for general purposes and costs of the capital raising.

7 Dates of entering[+] securities into uncertificated holdings or despatch 10 April 2012 of certificates

Number +Class 8 Number and +class of all Up to 295,930,973 Fully paid ordinary +securities quoted on ASX shares ( including the securities in clause 2 if applicable)

• See chapter 19 for defined terms.

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Number +Class 9 Number and +class of all +securities not quoted on ASX ( including the securities in clause 2 if applicable) 10 Dividend policy (in the case of a There has been no change to Alkane's dividend trust, distribution policy) on the policy. increased capital (interests)

Part 2 - Bonus issue or pro rata issue

11 Is security holder approval required? No 12 Is the issue renounceable or nonrenounceable? Entitlements are non-renounceable and will not be tradeable on ASX or otherwise transferable. 13 Ratio in which the[+] securities will be offered 1 new paid ordinary share for every 10 fully paid ordinary shares held at the Record Date (see item 15 below) 14 +Class of +securities to which the offer relates Fully paid ordinary shares 15 +Record date to determine entitlements 4.00 pm (Perth time) on 9 March 2012 16 Will holdings on different registers (or subregisters) be aggregated for No calculating entitlements? 17 Policy for deciding entitlements in relation to fractions Where fractions arise in the calculation of entitlements under the Entitlement Offer, they will be rounded up to the next whole number.

• See chapter 19 for defined terms.

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18 Names of countries in which the entity has+security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of+security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled	All countries other than Australia and New Zealand (subject to the Company's discretion).
	5.00 pm(Perth time)on 29March 2012
	Regal Funds Management Pty Ltd (Regal) will underwrite up to an amount of approximately $12.2 million of the shortfall shares under the Entitlement Offer (Underwritten Amount). Regal has appointed Gandel Metals Pty Ltd as trustee for the Gandel Metals Trust (Gandel Metals)to sub-underwrite its obligations.
	Regal will receive an underwriting fee of 5% of theUnderwritten Amount.
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	No prospectus or product disclosure document is being produced. An Entitlement Offer Booklet and Entitlement and Acceptance Form is expected to be sent to eligible shareholders on 14 March 2012.

• See chapter 19 for defined terms.

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27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do+security holders sell their entitlements_in full_through a broker? 31 How do+security holders sell_part_ of their entitlements through a broker and accept for the balance? 32 How do+security holders dispose of their entitlements (except by sale through a broker)? 33 +Despatch date	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	10 April 2012

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities ( tick one )

• (a)[Securities described in Part 1 ]

• (b)[All other securities ] Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

• See chapter 19 for defined terms.

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Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 35[If the ][+][securities are ][+][equity securities, the names of the 20 largest holders of the ] additional[+] securities, and the number and percentage of additional[+] securities held by those holders

36[If the ] +securities setting out the number of holders in the categories[+][securities are ][+][equity securities, a distribution schedule of the additional ] 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

37[A copy of any trust deed for the additional ][+][securities ]

Entities that have ticked box 34(b)

38 Number of securities for which +quotation is sought

39 Class of +securities for which quotation is sought

40 Do the[+] securities rank equally in all respects from the date of allotment with an existing[+] class of quoted +securities?

If the additional securities do not rank equally, please state:

• the date from which they do

• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

• See chapter 19 for defined terms.

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41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security)

42 Number and[+] class of all[+] securities quoted on ASX ( including the securities in clause 38)

Number +Class

• See chapter 19 for defined terms.

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Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: Date: 1 March 2012 Joint Company Secretary

Print name: Karen Brown

== == == == ==

• See chapter 19 for defined terms.

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