Alkane Resources — Capital/Financing Update 2019

Jun 4, 2019

ASX and MEDIA RELEASE

5 June 2019

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Tomingley Gold Production Update and Revised FY 2019 Guidance

Production for the 12 months ended June 2019 expected to be approximately 48,000 to 49,000 ounces at an AISC of A$950-$1,050/oz

Production

• ➢ Gold production from processing of medium grade stockpiles for April and May totals 8,886 ounces, giving 46,319 ounces financial year to date.

• ➢ Gold production for FY19 is expected to be approximately 48,000 to 49,000 ounces, which is above the upper range of previous guidance range of 42,000 to 47,000 ounces.

• ➢ Cost guidance for FY19 has reduced as a result to $950 to $1,050 per ounce.

• ➢ Processing of low-grade stockpiles, which total ~700,000 tonnes and are expected to average ~0.7 g/t Au, will continue for the remainder of the calendar year at the design feedrate of 1 million tonnes per annum, after which processing will revert to underground ore.

Underground

• ➢ Development of the underground operation continues on budget and ahead of schedule.

• ➢ Development rates from the single jumbo have averaged ~300m per month for the last three months.

• ➢ Development has turned out at the first ore level and first stoping ore is expected in August.

• ➢ Grade control drilling commenced in April.

Managing Director Nic Earner said “The team at Tomingley Gold Operations continues to perform really well, which in turn is providing a solid cash platform for the company to rapidly advance its near mine exploration. We look forward to seeing our first underground ore delivered shortly.”

CONTACT INVESTORS MEDIA

: NIC EARNER, MANAGING DIRECTOR, ALKANE RESOURCES LTD, TEL +61 8 9227 5677 : NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL +61 418 642 556 : HILL+KNOWLTON STRATEGIES: MARCHA VAN DEN HEUVEL, TEL +61 2 9286 1226 OR +61 468 960 457

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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Blue – actual development as of end of May
Brown – forecast development June
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Forecast Development under WY1 Pit as at the End of Q4 30 June 2019 (looking West)

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Blue – actual development as of end of May
Stopes
Brown / Dark Blue – forecast development June / Q1
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Forecast Development under WY1 Pit as at the End of Q1 30 September 2019 (looking West)

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Alkane Resources Ltd – TGO Guidance Update

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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 Ian Chalmers, (Alkane Technical Director) 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 gold production company with a multi‐commodity exploration and development portfolio. Alkane’s projects are predominantly in the Central West region of NSW, but extend throughout Australia.

Alkane’s gold production is from the Tomingley Gold Operations (TGO) which has been operating since early 2014. Alkane has investments in other gold exploration and development companies.

Alkane’s most advanced gold exploration projects are in the 100% Alkane owned tenement area between TGO and Peak Hill and have the potential for sourcing additional ore for TGO.

Alkane has other 100% owned exploration tenements in Central Western NSW prospective for gold and copper.

Alkane’s largest non‐gold project is the Dubbo Project (DP), a large in-ground resource of zirconium, hafnium, niobium, yttrium and rare earth elements. As it is an advanced polymetallic project outside China, it is a potential strategic and independent supply of critical minerals for a range of sustainable technologies and future industries. It has a potential mine life of 75+ years. The DP is development ready, subject to financing, with the mineral deposit and surrounding land acquired and all major State and Federal approvals in place.

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Alkane Resources Ltd – TGO Guidance Update