Alkane Resources — Capital/Financing Update 2013

Sep 2, 2013

ASX and MEDIA RELEASE

3 SEPTEMBER 2013

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RESOURCES LTD ABN 35 000 689 216

ALKANE EXPANDS EXPLORATION TENEMENTS TO TARGET McPHILLAMYS STYLE GOLD DEPOSITS

Alkane has expanded its exploration portfolio in the Central West of New South Wales with the acquisition of two projects considered prospective for McPhillamys style gold deposits.

Alkane, in joint venture with Newmont Australia Ltd, discovered the McPhillamys gold deposit near Blayney in 2006. Subsequent drilling of the deposit defined a substantial gold resource of 2.96 million ounces (ALK ASX announcement 5 July 2010). The project was sold to Regis Resources Ltd for the issue of 35.7 million shares (Alkane 17.5 million shares) in August 2012.

Alkane developed considerable technical knowledge with the discovery and evaluation of the McPhillamys deposit, and has been applying this knowledge to its targeting for McPhillamys style gold mineralisation in the Central West region. As a result two properties, Elsienora and Rockley, have been acquired.

Elsienora

Alkane has reached agreement with Balamara Resources Limited (“Balamara”) (ASX: BMB) to farm into two exploration licences (EL 6082 and EL 6767) located approximately 75 kilometres south of Blayney and the McPhillamys deposit.

Under the agreement, Alkane can earn up to an 80% interest in the tenements by spending $500,000 on exploration over three years, with a minimum $250,000 spend over two years. After Alkane has earned the 80% interest, Balamara will have the option to pro-rata contribute or dilute according to a standard industry formula.

The geology of the project area comprises a package of variably pyritic, intermediate to felsic volcaniclastics which hosts several zones of elevated gold geochemistry. Two broad styles of gold mineralisation are recognised within the area, the most common are typically small, sulphidepoor quartz veins, being developed within a late-stage brittle-ductile strain regime. A less common style is characterised by sulphide-rich disseminated mineralisation associated with pervasively argillic-altered volcaniclastics. This second style appears to be related to earlier subseafloor processes, with several similarities to McPhillamys-style mineralisation and with bulk tonnage mining potential.

CONTACT : IAN CHALMERS, MANAGING DIRECTOR, ALKANE RESOURCES LTD, TEL +61 8 9227 5677

INVESTORS : NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL +61 418 642 556 MEDIA : WESTBROOK COMMUNICATIONS, CONTACT: IAN WESTBROOK, TEL +61 2 9231 0922 OR +61 407 958 137

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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Balamara’s activity over the past six years, like most of the historical exploration activity in the area, has been focussed on the major historic workings at the Elsienora Prospect. Activity has involved RC drilling (9 holes for 1658m) and diamond drilling (2 holes for 938.8m) with sporadic regional surface geochemical surveys, including rock chip and BLEG stream sediment sampling. The best intercept was 21m @ 0.89g/t gold in core hole SEDD 013 (BMB ASX Announcement 17 February 2012) .

The potential for disseminated gold mineralisation elsewhere in the lease has also been demonstrated at the Cuddyong Prospect, where disseminated gold mineralisation is described associated with argillic-altered pyritic, volcaniclastic units and is currently defined by trench geochemistry (50m @ 2.3g/t gold, including 25m @ 3.6g/t gold - Trench 4), and nearby sporadic drilling ( incl 24m @ 0.9g/t Au from 6m in RC hole WL2) completed by other companies in the late 1980’s.

Additional areas, characterised by coincident pyritic volcaniclastics and anomalous surface gold geochemistry exist throughout the area, including a 1.5km long zone defined by the NobbsPicker-Barite Prospect trend.

Rockley

Alkane’s 100% owned Rockley Project is comprised of two exploration licence applications (ELA 4808 and ELA 4851) totalling 85 km[2] centred approximately 30 kilometres southeast of Blayney.

The geology of the Rockley area is similar to Elsienora and McPhillamys, with extensive altered and pyritic intermediate to felsic volcaniclastics.

Historic mining and past exploration has identified multiple target areas but recent exploration has focussed on the Rosedale prospect within ELA4808 where previous drilling has recorded intercepts of 24m @ 0.3g/t gold in RRC 004 and 13m @ 0.8g/t gold to EOH in core hole RJ1 (PDM ASX announcement 23 June 2009). This mineralisation is within a 1,000 metre long by 200 metre wide gold anomaly defined by soil sampling and RAB drilling. Untested, strongly chargeable IP anomalies occur along strike and down dip from existing drilling within interpreted McPhillamys-equivalent stratigraphy and form high priority drill targets.

Full data compilation and targeting has commenced.

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

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Alkane Resources Ltd – Tenement Acquisitions 3 September 2013

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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.

This document has been prepared in accordance with the requirements of Australian securities laws, which may differ from the requirements of United States and other country securities laws. Unless otherwise indicated, all ore reserve and mineral resource estimates included or incorporated by reference in this document have been, and will be, prepared in accordance with the JORC classification system of the Australasian Institute of Mining, and Metallurgy and Australian Institute of Geosciences.

ABOUT ALKANE - www.alkane.com.au - ASX: ALK and OTCQX: ANLKY

Alkane is a multi-commodity company focused in the Central West region of NSW Australia. Currently Alkane has two projects heading towards production in 2014/2016 - the Tomingley Gold Project (TGP) and the nearby Dubbo Zirconia Project (DZP). Tomingley received project approval for its development early 2013 and is scheduled to commence production early 2014. Cash flow from the TGP will provide the funding to maintain the project development pipeline and will assist with the development of the DZP.

The DZP environmental impact statement has been completed and a development decision is anticipated early 2014. This project will make Alkane a strategic and significant world producer of zirconium products and heavy rare earths.

Alkane’s most advanced gold copper exploration projects are at the 100% Alkane owned Wellington and Bodangora prospects. Wellington has a small copper-gold resource which can be expanded, while at Bodangora a large 12km[2] monzonite intrusive complex has been identified with porphyry style copper-gold mineralisation. Encouraging gold-zinc mineralisation and alteration associated with a monzonite intrusive, has been identified at Cudal.

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Alkane Resources Ltd – Tenement Acquisitions 3 September 2013

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----- Start of picture text ----- Sct 149° 20' EBathurst80km CROOKED CORNER SUITESctDra Asylam GraniteSct CAMPBELLS GROUPNSct Wrens Nest TrachyteScc Cuddyong Fm -felsic volcaniclastic and lavasSccr RhyoliteScca Quartzose sandstoneSccs Siliceous pyritic siltstone6 220000mNDra CuddyongProspectE L 6 0 8 2Nobbs PickerBarite TrendSccSccDraaElsienora SccProspect34°10' SSccrSccaE L 6 7 6 76215000mNSccsSccrSccScc0 2.5SccaAlkane Resources LtdSccrSccrElsienora JVNew South WalesGeology 6210000mNFigure: 2715000mE Goulburn 70kmProjection - MGA Zone 55Datum (horizontal) - GDA94FautleorgekeGLaFauhaniatlCopperThrust GoulburnBindaRoadDevonianPalaeozoicSilurian----- End of picture text -----