Alkane Resources — Capital/Financing Update 2017

Apr 2, 2017

ASX and MEDIA RELEASE

3 April 2017

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Further Extensive Gold Copper Mineralisation Identified Within Northern Molong Porphyry Project

• The Northern Molong Porphyry Project hosts five discrete monzonite intrusive/magnetic complexes within a 15 kilometre northwest trending corridor through the northern Molong Volcanic Belt in the central west of New South Wales

• Further drill testing of the Boda target has indicated a significant increase in grade to the south and at depth, confirming the extensive gold and copper mineralisation. Drill intercepts include:

KSRC021 43 m grading 0.47g/t Au and 0.31% Cu from 173 m within a broader zone of 130 m grading 0.23g/t Au and 0.18% Cu from 92 m

KSRC022 10 m grading 0.90g/t Au and 0.11% Cu from 269 m

within a broader zone of 290 metres grading 0.17g/t Au and 0.09% Cu from 0 m

• Previous drilling had indicated widespread and extensive alteration of the monzonite intrusives and host rocks, with significant gold – copper mineralisation near all the intrusive complexes

• The monzonite intrusive complexes are similar to those hosting the major gold – copper deposits in the Cadia Valley to the south

: NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL +61 418 642 556

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

CONTACT INVESTORS MEDIA

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

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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Northern Molong Porphyry Project (copper‐gold)

Alkane Resources Ltd 100% (includes the Bodangora, Kaiser and Finns Crossing tenements)

A RC drilling program of 13 holes totaling 3400 metres was recently completed testing four target areas; Driell Creek, Boda, Kaiser and Windora within the Northern Molong Porphyry Project ( NMPP ). The NMPP covers an area of 110 km[2 ] located approximately 20‐25 km north of Wellington in the central west of NSW and encompasses three exploration licences; Bodangora, Kaiser and Finns Crossing. The project covers a large portion of the northern Molong Volcanic Belt ( MVB ) which is host to a number of mineral deposits exemplified by the world class alkalic porphyry deposits within the Cadia Valley Operations of Newcrest Mining Limited.

Through a detailed assessment of existing datasets including ground and aeromagnetic data, geological mapping, re‐logging of existing drill core and systematic use of detailed lithogeochemical analyses, and the staged and strategic location of drill holes Alkane has been able to partially reconstruct the geology in the region. Although structurally more complex than the Cadia Valley area, results of this work have shown that a stratigraphic sequence very similar to that at Cadia Valley exists within the project area, and that mineralisation is hosted by very similar rock types at very similar stratigraphic positions.

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Through this process of detailed geological analysis five discrete magnetic/intrusive complexes have been identified to date – Kaiser, Boda, Comobella, Driell Creek and Finns Crossing – within a 15 km northwest trending corridor. Recent drilling adjacent to the Driell Creek Complex (4 holes for 1080 metres) targeted a chargeable induced polarisation (IP) anomaly interpreted to be potentially associated with a more proximal (inner propylitic, calc‐potassic) alteration located to the south of a broad

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Alkane Resources Ltd – North Molong update 3 April 2017

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sericite+pyrite+albite+K‐feldspar alteration zone interpreted as an alkalic lithocap intersected in earlier drilling (lithocaps generally occur either above or adjacent to major alkalic porphyry systems). No significant change in alteration style was observed however the presence of potassic feldspar suggests a more proximal position in the alteration system and it should be noted that all holes drilled at Driell Creek are shallow (<250 metres vertical depth). Low grade gold and copper values were returned from one hole ‐ (COMRC040 ‐ 91m grading 0.11g/t gold and 0.11% copper).

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Drilling completed in April 2016 adjacent to the Boda complex tested a zone highlighted by the stratigraphic and structural reconstruction of the geology to the south of the Kaiser prospect. This drilling intersected broad zones of low grade mineralisation hosted by strongly altered volcanics and monzodioritic intrusive rocks ‐ KSRC018 ‐ 311m grading 0.28g/t Au and 0.06% Cu from 19m (ASX Announcement 6 May 2016). Recent follow‐up drilling, approximately 300 metres to the south, has confirmed the prospectivity of the target with broad zones of low grade gold and copper mineralisation again intersected on the western shoulder of the Boda magnetic (intrusive) complex. Of particular interest is the significant increase in copper values in these recent drill holes and the presence of higher grade gold zones in both KSRC021 and KSRC022.

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Alkane Resources Ltd – North Molong update 3 April 2017

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• KSRC021 – 130 metres grading 0.23g/t Au and 0.18% Cu from 92m to EOH including 43 metres grading 0.47g/t Au and 0.31% Cu from 173 metres

• KSRC022 ‐ 290 metres grading 0.17g/t Au and 0.09% Cu from 0 metres Including 10 metres grading 0.90g/t Au and 0.11% Cu from 269 metres

The higher grade zones at or near the bottom of these two drill holes attests to the potential at depth at the Boda prospect and deeper drilling is being planned.

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Two drill holes were completed testing different zones within the Kaiser tenement. KSRC024 tested the northern/north‐western extents of the Duke zone and KSRC025 was drilled into the previously poorly tested Kaiser East area. Neither drill hole intersected major mineralisation. Three drill holes were completed as the initial testing of the Windora target within the Finns Crossing tenement. The holes targeted subtle magnetic features situated within rocks of generally low magnetic tenure within a broader complex. Although each of the holes intersected altered monzonite intrusives with weak to moderate pyrite development, metal tenor is low.

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		BODANGORA PROJECT RC DRILLING – 31 March 2017(>0.1g/t Au and or 0.05% Cu)	BODANGORA PROJECT RC DRILLING – 31 March 2017(>0.1g/t Au and or 0.05% Cu)	BODANGORA PROJECT RC DRILLING – 31 March 2017(>0.1g/t Au and or 0.05% Cu)	BODANGORA PROJECT RC DRILLING – 31 March 2017(>0.1g/t Au and or 0.05% Cu)	BODANGORA PROJECT RC DRILLING – 31 March 2017(>0.1g/t Au and or 0.05% Cu)	BODANGORA PROJECT RC DRILLING – 31 March 2017(>0.1g/t Au and or 0.05% Cu)	BODANGORA PROJECT RC DRILLING – 31 March 2017(>0.1g/t Au and or 0.05% Cu)	BODANGORA PROJECT RC DRILLING – 31 March 2017(>0.1g/t Au and or 0.05% Cu)	BODANGORA PROJECT RC DRILLING – 31 March 2017(>0.1g/t Au and or 0.05% Cu)	BODANGORA PROJECT RC DRILLING – 31 March 2017(>0.1g/t Au and or 0.05% Cu)
Hole ID	Easting	Northing	Dip	Azimuth	Total	Interval	Interval	Intercept	Au	Cu (%)	Prospect
	(MGA)	(MGA)		(Grid)	Depth	From(m)	To(m)	(m)	(g/t)
COMRC040	687691	6415628	‐76		288	168	259	91	0.11	0.11	Driell Creek
COMRC041	687801	6415730	‐67		300	No results >0.1 g/t Au or >500ppm Cu					Driell Creek
COMRC042	688060	6415719	‐64		246						Driell Creek
COMRC043	687443	6415734	‐64		246						Driell Creek
KSRC020	690505	6410832	‐75		234	1	234	233	0.17	0.12	BODA
incl						7	113	104	0.23	0.16
KSRC021	690175	6410812	‐67		222	92	222*	130	0.23	0.18	BODA
incl						95	106	11	0.40	0.31
incl						173	216	43	0.47	0.31
KSRC022	690414	6410830	‐76		300	0	290	290	0.17	0.09	BODA
incl						86	104	18	0.13	0.16
incl						124	147	23	0.17	0.16
incl						205	235	30	0.33	0.17
incl						269	279	10	0.90	0.11
Incl						270	271	1	6.42	0.78
KSRC023	690102	6410751	‐75		180	No results >0.1 g/t Au or >500ppm Cu					BODA
KSRC024	689541	6412295	‐65		234	0	234*	234	0.07	0.07	KAISER
incl						0	13	13	0.15	0.15
incl						87	129	42	0.09	0.12
incl						88	89	1	0.82	0.94
KSRC025	689632	6412031	‐69		249	0	23	23	0.36	0.16	KAISER
and						38	66	28	0.13	0.18
and						74	88	14	0.13	0.15
and						113	176	63	0.09	0.16
FCRC001	680478	6419793	‐75		42	No results >0.1 g/t Au or >500ppm Cu					ABANDONED
FCRC002	680499	6419795	‐76		288						WINDORA
FCRC003	680599	6419919	‐82		276						WINDORA
FCRC004	680129	6420048	‐82		295						WINDORA

Previous Exploration

Initial work by Alkane was completed within the Comobella Intrusive Complex where drilling of IP chargeability anomalies intersected 45m grading 0.90 g/t Au and 0.24% Cu (COMRC0009, ASX Announcement 19 April 2011) within and adjacent to a large monzonitic intrusive stock. At around the same time RC drilling of a partially defined chargeability anomaly adjacent to the Driell Creek Intrusive Complex intersected a broad sericite+pyrite+albite+K‐feldspar alteration zone interpreted as an alkalic lithocap. A later survey extending the IP coverage (31 March 2016 Quarterly Report, ASX 20 April 2016) in the Driell Creek area indicates that this chargeable anomaly is much more extensive, extending southwards from this alkalic lithocap area to an area interpreted from aeromagnetic data to be potentially associated with a more proximal (inner propylitic, calc‐potassic) alteration zone.

The most extensive previous exploration in the project area was completed at the Kaiser deposit where significant gold and copper mineralisation has been identified within highly altered monzonitic intrusive rocks, along the south‐western margin of the Kaiser Intrusive. Drilling in this area by Alkane intersected

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Alkane Resources Ltd – North Molong update 3 April 2017

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60m grading 0.81g/t Au and 0.91% Cu (KSRC001, ASX Announcement 8 April 2014). Structural analysis and re‐interpretation of magnetic data indicates that a potential repetition of the Kaiser zone may be present to the north‐north east at Duke and again at the Belgium‐Boda targets along the south ‐ eastern margin of the Kaiser Complex. Each of these prospects is interpreted to represent an intrusion centered porphyry occurrence similar to the Ridgeway and Cadia East deposits within Cadia Valley. Drilling at the Duke prospect by Alkane in 2014 intersected broad zones of mineralisation, eg 112m grading 0.24 g/t Au and 0.36% Cu from 115m (KSRC010, ASX Announcement 21 January 2015) confirming previous exploration results, but more importantly showing an increase in grade at depth compared with the earlier data. A single drill hole (KSRC013, ASX Announcement 6 May 2016) completed in April 2016 intersected 111m grading 0.61g/t Au and 0.08% Cu from 42m and continues to confirm the potential for increasing grades (in particular gold) within this zone, both along strike and down dip.

Initial drilling at the Belgium and Boda targets in April 2016 (ASX Announcement 6 May 2016) has continued to expand the area of porphyry mineralisation around the margins of the Kaiser Intrusive Complex with KSRC018, one of only 4 holes completed within the Boda target, intersecting 311m grading 0.28g/t Au and 0.06% Cu from 19m hosted by strongly altered volcanics and monzodioritic intrusive rocks. This mineralisation is associated with a strong magnetic response (determined with downhole magnetic susceptibility measurements) and appears broadly coincident with a discrete strongly magnetic feature in aeromagnetic imagery striking > 1.3km.

Summary

The recent drilling and the results from the extended induced IP survey continue to confirm the project area as a prime target for large tonnage Au‐Cu alkalic porphyry mineralisation. Alteration systems with characteristics of alkalic porphyry systems have been identified at all five intrusive complexes within the project area. Low grade Au‐Cu mineralisation, ranking on a par with early drilling by Newcrest at Ridgeway where intercepts such as 102m grading 0.13g/t Au and 0.40% Cu were encountered just 200m from the core of the system (e.g. 296m grading 4.41g/t Au and 1.02% Cu), has now been identified over a strike length of up to 1600m along the margins of the Kaiser Intrusive Complex at Kaiser, Duke and Boda.

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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 Geoscientists.

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 Project (DP). Tomingley commenced production early 2014. Cash flow from the TGO has provided the funding to maintain the project development pipeline and will assist with the pre‐ construction development of the DP.

The NSW Planning Assessment Commission granted development approval for the DP on 28 May 2015 and on 24 August 2015 the Company received notification that the federal Department of the Environment gave its approval for the development. Mining Lease 1724 was granted on 18 December 2015 and the Environment Protection Licence was approved on 14 March 2016. Financing is in progress and this project will make Alkane a strategic and significant world producer of zirconium, hafnium and rare earth products when it commences production in 2019.

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

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The following tables are provided to ensure compliance with the JORC Code (2012) edition requirements for the reporting of exploration results.

JORC Code, 2012 Edition – Table 1 NORTHERN MOLONG PORPHYRY PROJECT

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
Sampling techniques	 Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	Reverse Circulation (RC) samples are collected at one metre intervals via a cyclone and cone splitter onboard the rig. The cyclone and splitter are cleaned regularly to minimise any contamination. Drilling, sampling and QAQC procedures are carried out to industry standards. RC Drilling - approximately 10% (3kg) of total sample is delivered via cone splitter into a calico bag with the remaining sample delivered into a large plastic bag and retained for future use if required. All samples sent to laboratory are crushed and/or pulverised to produce a ~100g pulp for the assay process. Gold was determined by fire assay fusion of a 50g charge with an AAS analytical finish. A multi-element suite was determined using a four acid digest with a ICP-AES, ICP-MS analytical finish.
Drilling techniques	 Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	Conventional RC drilling using 100mm rods and 144mm face sampling hammer.
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	RC - Sample quality is assessed by the sampler by visual approximation of sample recovery and if the sample is dry, damp or wet. Riffle and cone splitters were used to ensure a representative sample was achieved on all 1 metre intervals. RC drilling completed using oversized shrouds to maintain sample return in oxide zone and all samples are split using a cone splitter. A high air capacity RC rig was used enabling mostly dry samples collected. Various additives are used to condition the RC holes to maximise recoveries and sample quality. Drill cyclone and sample buckets are cleaned between rod changes and after each hole to minimise cross-hole contamination There is no known relationship between sample recovery and grade.
Logging	 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.  The total length and percentage of the relevant intersections logged.	RC - each one metre interval is geologically logged for characteristics such as lithology, weathering, alteration (type, character and intensity), veining (type, character and intensity) and mineralisation (type, character and volume percentage). All logging is qualitative with visual estimates of the various characteristics. A representative sample of each one metre interval is retained in chip trays for future reference. All RC chip samples have been geologically logged by qualified geologists.

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Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
Sub-sampling techniques and sample preparation	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.  Whether sample sizes are appropriate to the grain size of the material being sampled.	No core drilling completed. All drilling by RC method.. RC - for each one metre interval a calico sample bag is collected via an on-board cone splitter, numbered and submitted to the laboratory for analysis. Occasional damp or wet samples are recorded by the sampler. Laboratory Preparation – the entire RC sample (~3kg) is dried and pulverised in an LM5 (or equivalent) to ≥85% passing 75µm. Bulk rejects for all samples are discarded. A pulp sample (±100g) is stored for future reference. ALK sampling techniques are of industry standard and considered adequate. Field duplicate samples collected at every stage of sampling to control procedures. Duplicate samples are riffle split from the calico sample bags collected from the drill rig. Duplicates generally show excellent repeatability. Sample sizes are industry standard and considered appropriate.
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) _and precision have been established. _	Gold is determined using a 50g charge fused at approximately 1100°C with alkaline fluxes, including lead oxide. The resultant prill is dissolved in aqua regia with gold determined by flame AAS. For other geochemical elements, samples are digested by near-total mixed acid digest with each element determined by ICP Atomic Emission Spectrometry or ICP Mass Spectrometry. Apart from copper, these additional elements are generally only used for geological interpretation purposes, are not of economic significance and are not routinely reported. No down hole geophysical logging or hand held XRF analyses undertaken. Commercially prepared Certified Reference Materials (CRM) are inserted at 1 in 50 samples. CRM’s are not identifiable to the laboratory. Field duplicate samples are inserted at 1 in 50 samples (alternate to CRM’s). Laboratory QAQC sampling includes insertion of CRM samples, internal duplicates and screen tests. This data is reported for each sample submission. Failed standards result in re-assaying of portions of the affected sample batches.
Verification of sampling and assaying	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Drill data is compiled and collated, and reviewed by senior staff. External consultants do not routinely verify exploration data until resource estimation procedures are deemed necessary. No twinned holes have been drilled at this early stage of exploration. All drill hole logging and sampling data is entered directly into field data entry spreadsheets for transfer and storage in an industry standard access database with verification protocols in place. All primary assay data is received from the laboratory as electronic data files which are imported into sampling database with verification procedures in place. QAQC analysis is undertaken for each laboratory report. Digital copies of Certificates of Analysis (COA) are stored in a central database with regular (daily) backup. Original survey data is stored on site.

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Criteria	JORC Code explanation Commentary	JORC Code explanation Commentary
	 Discuss any adjustment to assay data.	Data is also verified on import into various software packages. No assay data was adjusted.
Location of data points	 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control.	Drill holes are laid out using hand held GPS (accuracy ± 2m) then DGPS surveyed accurately (± 0.1m) by licenced surveyors on completion. Down hole orientation surveys were completed at a nominal 30m down hole interval using a Reflex Instrument: EZ-Trac multishot survey instrument. MGA (Zone 55), GDA94 As noted above, all drill holes DGPS surveyed accurately (± 0.1m) by licenced surveyors on completion.
Data spacing and distribution	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.	At this early exploration stage, the data spacing is variable as the focus is on identifying new zones of mineralisation. Reconnaissance drilling only, no resource estimations being undertaken. No sample composites were taken – all samples are 1m intervals.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	Much care is given to attempt to intersect structure at an optimal angle. It is not thought that drilling direction will bias assay data significantly.
Sample security	 The measures taken to ensure sample security.	All samples are bagged in tied numbered calico bags, grouped into larger tied polyweave bags and transported 1 hour to ALS in Orange by Alkane personnel. All sample submissions are documented via ALS tracking system and all assays are reported via email. Sample pulps are returned to site and stored for an appropriate length of time (minimum 3 years). The Company has in place protocols to ensure data security.
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	The Company does not routinely have external consultants verify exploration data until resource estimation procedures are deemed necessary.

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	Drilling completed on exploration licence numbers 4022, 6209 and 8261 which are owned 100% by Alkane. Ajax Joinery retain a 2% net smelter return on any products produced from within EL6209.
		All exploration licences are in good standing. EL4022 expires on 13 August 2020 and EL6209 on 11 March 2017 for which an application for renewal has been lodged. EL8261 expires on 29 April 2017.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	Significant historical drilling activity has been conducted within the bounds of EL6209 and EL4022. Kaiser – Duke Prospects Within EL6209 records show 14 AC (170m), 78 RC (7591m) and 45 DD holes (7833m) = 15,594m. Under-reporting of historical exploration drill results from the Kaiser Prospect is suggested by preliminary metallurgical test work by previous explorers and is supported by a drill hole (KSRC001) completed by Alkane. This can be partly explained by the partial digests and analogue equipment commonly used in the 1970s. Alkane’s reinterpretation of the geometry of the porphyry mineralisation at Kaiser-Duke has important implications on the potential of the area, in that historical drilling probably hasn’t adequately tested the down dip extents of the mineralised zones. Boda Prospect CRA Exploration/Rio Tinto completed several reconnaissance RC holes in the Boda Prospect area in 1995. The results identified sporadic, shallow low grade intervals of gold mineralisation hosted within a sequence of monzonites, diorites and intermediate volcanics. Sampling was performed by collecting spear composites from 3m drill runs, assayed by aqua regia digest and fire assay-AAS and ICP finishes. Driell Creek Prospect Historic exploration in the Driell Creek area has been restricted to the completion of wide spaced (500m x 500m) vertical air core drilling for geochemical and geological mapping purposes. Windora Prospect (Finns Crossing) Only broadly spaced air core drilling for geochemical and geological mapping has been completed at the Windora prospect area. CRA and Newmont have previously completed deeper RC and core drilling at other prospects within the licence.
Geology	 Deposit type, geological setting and style of mineralisation.	The area is located at the northern extent of the Molong Volcanic Belt, a geological region considered highly prospective for and host to several economically important examples of porphyry Au-Cu mineralisation e.g. Cadia Valley alkalic porphyry cluster. In particular, the Ridgeway Deposit mineralisation at Cadia, which is localised along the margin of the Cadia Intrusive Complex shows similarities with the metal tenor and geological setting of the Kaiser mineralisation, located at the margin of the Kaiser Intrusive Complex.

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Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
Drill hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.  If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	See body of announcement and figures
		All drill holes have been reported in this announcement.
Data aggregation methods	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.  The assumptions used for any reporting of metal equivalent values should be clearly stated.	Exploration results reported – for uncut gold grades; grades are calculated by length weighted average. Reported intercepts are calculated using a broad lower cut of 0.1g/t Au and/or 0.05% Cu although grades lower than this may be present internally (internal dilution). No top cut has been used. Short intervals of high grades that have a material impact on overall intersection are reported as separate (included) intervals. No metal equivalents are reported.
Relationship between mineralisation widths and intercept lengths	 These relationships are particularly important in the reporting of Exploration Results - If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	Significant efforts have been placed on the understanding, interpretation and, where possible, re-logging of historical diamond drilling in the tenement. This interpretation is constantly changing as new data is gathered and currently shows a variable but generally steeply dipping orientation to stratigraphy. Therefore, at this early exploration stage the drilling directions chosen are deemed appropriate.
Diagrams	 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Plans showing geology with drill collars are included in the body of the announcement.
Balanced reporting	 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	Comprehensive reporting has been undertaken with all holes listed in the included table.
Other substantive exploration data	 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	Other than drilling noted above and minor geophysical data which has been used to assist interpretations, no other material exploration data is available for reporting.

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Alkane Resources Ltd – North Molong update 3 April 2017

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Criteria	JORC Code explanation	Commentary
Further work	 The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).	It is recommended that further drilling be undertaken within the licences to further define the targets
	 Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	See figures included in the announcement.

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Alkane Resources Ltd – North Molong update 3 April 2017