Alkane Resources — Capital/Financing Update 2015

Dec 20, 2015

ASX and MEDIA RELEASE

21 December 2015

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Dubbo Zirconia Project Mining Lease Granted

DUBBO ZIRCONIA PROJECT (DZP) – zirconium, hafnium, niobium, yttrium, rare earth elements

Australian Zirconia Ltd (AZL) 100%

Following on from New South Wales state governmental planning approval for the development of the Dubbo Zirconia Project (DZP or the Project) in May 2015, the NSW Department of Industry, Division of Resources and Energy have advised that the Mining Lease for the Project has been granted. This leaves the Environment Protection Licence (EPL), which also follows on from planning approval, as the final major step in the approvals process required to enable Australian Zirconia Limited (AZL), a wholly owned subsidiary of Alkane Resources Ltd, to progress with construction, subject to financing

The DZP is located 25 kilometres south of the large regional centre of Dubbo in the Central West Region of New South Wales . The Project is based upon large in-ground resources of the metals zirconium, hafnium, niobium, (tantalum), yttrium and rare earth elements. Over several years the Company has developed a flow sheet consisting of sulphuric acid leach followed by solvent extraction recovery and refining to produce several products, including proving the process at demonstration pilot plant scale and providing product samples for market evaluation.

Strategic Significance of the DZP

Customers from most major economies such as United States, Japan and several European countries consider the products from the DZP to be “strategic” or “critical” metals and oxides. The chief factors influencing this classification include supply risk, economic importance, availability of substitutes and whether the production time frame is short or long term.

The importance of the DZP as a new source of more than ten strategic metals and oxides diversifying supply away from existing sources continues to gain recognition and support from companies and governments seeking to reduce dependence on current supply sources, particularly from China.

The diversity of the DZP’s products and of their markets will also provide the Project with stability of its revenue streams over a broad base as different markets cycle through ups and downs over time. Recent ASX announcements providing up to date details on the Project are available on the Company’s website and include releases dated

• 28 August 2015 (http://www.alkane.com.au/images/pdf/asx/2015/20150827.pdf) and

• • 18 November 2015 (http://www.alkane.com.au/images/pdf/asx/2015/20151118.pdf).

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 : HILL KNOWLTON STRATEGIES, CONTACT: IAN WESTBROOK, TEL +61 2 9286 1225 OR +61 407 958 137

Ground Floor, 89 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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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 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr 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.

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 advanced projects - the Tomingley Gold Operations (TGO) and the nearby Dubbo Zirconia Project (DZP). Tomingley commenced production early 2014. Cash flow from the TGO has provided the funding to maintain the project development pipeline and assist with the pre-construction development of the DZP.

The DZP Environmental Impact Statement has been completed and development consent granted by the Planning Assessment Commission. Financing is in progress and this project will make Alkane a strategic and significant world producer of zirconium products, hafnium and rare earths when it commences production in 2017.

Alkane’s most advanced gold copper exploration projects are at the 100% Alkane owned Wellington and Bodangora prospects, and Elsienora farm-in. Wellington has a small copper-gold deposit which can be expanded, while at Bodangora a large 12km[2] monzonite intrusive complex has been identified with porphyry style gold copper mineralisation. Encouraging gold mineralisation was recently drilled at Elsienora.

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Alkane Resources Ltd – DZP Mining Lease granted 21 December 2015