Alkane Resources — Capital/Financing Update 2019

Mar 28, 2019

ASX and MEDIA RELEASE

29 March 2019

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Significant Gold Intercepts Confirm Potential for Tomingley Extension ‐ 50,000 metres of Drilling Initiated

• Broad, shallow high grade gold intercepts 3 to 4 kilometres south of Tomingley Gold Operations demonstrate potential for material project life extension and flag potential return to open pit mining.

• RC and diamond core drilling results received for the San Antonio prospect demonstrated significant high grade gold zones, with intercepts of:

• RWRC038 24 metres grading 5.08g/t Au from 78 metres; incl 6 metres grading 13.83g/t Au from 78 metres;

• RWRC044 51 metres grading 2.52g/t Au from 39 metres; incl 18 metres grading 5.34g/t Au from 57 metres; RWRC045 33 metres grading 4.37g/t Au from 141 metres; incl 9 metres grading 12.25g/t Au from 141 metres; RWRC047 39 metres grading 6.09g/t Au from 153 metres to end of hole; incl 9 metres grading 10.45g/t Au from 153 metres; also 6 metres grading 15.41g/t Au from 180 metres.

• Results compare favourably with those that became part of the Tomingley Gold Operations open pits.

• RC drilling has confirmed significant gold mineralisation at San Antonio over a strike length of 800 metres and Roswell of 350 metres. The prospects are open along strike and down dip and an additional 3,000 metres of drilling is in progress to test the 300 metre untested strike between them.

• Resource definition drilling at the San Antonio and Roswell prospects will commence as soon as practical and is expected to comprise of ~50,000 metres of predominantly RC drilling.

CONTACT : NIC EARNER, 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: 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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Tomingley Gold Project ‐ Summary

Alkane Resources Ltd 100%

The Tomingley Gold Project (TGP) covers an area of approximately 440km[2 ] stretching 60km north‐south along the Newell Highway from Tomingley in the north, through Peak Hill and almost to Parkes in the south. The TGP contains Alkane’s currently operating Tomingley Gold Operations (TGO), an open pit mine with a 1Mtpa processing facility that is transitioning to underground through 2019.

Over the last year Alkane has conducted an extensive regional exploration program with the objective of defining additional resources that have the potential to be mined either via open pit or underground operations and fed to TGO. The program has yielded broad, shallow high grade intercepts that demonstrate potential for material project life extension and show that a potential return to open pit mining and / or underground extension is possible with appropriate resource confirmation, landholder agreement and regulatory approvals.

This exploration drill program of 12,000 metres of predominantly reverse circulation (RC) drilling represents a follow up to the initial regional aircore drill program which commenced in late 2017, yielding encouraging results. This program, which tested the gold resource potential of the Roswell, San Antonio and El Paso prospects has now completed drilling.

As part of the recent program assay results were received from 25 RC drill holes and 1 diamond core drill hole completed at the San Antonio prospect, 4km south of TGO, for a total of 5,577 metres.

The drilling undertaken:

• was completed along nominal 80 metre spaced traverses with nominal 60 metre drill hole spacing;

• 3 metre composite samples were assayed. Approximately one third of the 1 metre re‐splits have been received to date.

Re‐assaying of the remaining 1 metre re‐split samples is taking place.

Assays are pending for the El Paso prospect, with reporting expected in May.

The full program of RC drilling has confirmed significant gold mineralisation at San Antonio over a strike length of 800 metres and Roswell of 350 metres. The prospects are open along strike and down dip and an additional 3,000m of drilling is in progress to test the 300m untested strike between them. In addition, the extent of the mineralisation is such that a Resource definition drilling at the San Antonio and Roswell prospects will commence as soon as practical. This is expected to comprise of ~50,000m of predominantly RC drilling.

Managing Director, Nic Earner, said: “It is clear from the breadth and grade encountered in the latest drilling that these are the most significant exploration results in the Tomingley region since the initial discoveries by Alkane over 10 years ago. These results are reminiscent of the discovery holes of the deposits that then became our Tomingley Gold Operations. With our processing plant, which is currently treating stockpiles and is soon to be processing underground material, only 4kms away, we will be expediting the drilling and development of these ounces to capture value for shareholders as quickly as possible”.

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Alkane Resources Ltd – Significant Gold Intercepts at TGP 29 March 2019

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Alkane Resources Ltd – Significant Gold Intercepts at TGP 29 March 2019

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Regional Geology and Drill Hole Locations: Roswell – San Antonio

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----- Start of picture text -----

613500m E 614000m E
6391000m N
Rosw ell
6390500m N
Section 6390320m N
Section 6390240m N
San Antonio
6390000m N Dolerite dykes (East ‐ W est trending)
Cotton Form ation siltstone
Hornblende + plagioclase phyric diorite
M onzodiorite sill
Volcaniclastic sedim ents
Volcaniclastic conglom erate
Feldspar phyric Andesite (elevated P)
Feldspar phyric andesite
Andesite
Alkane drilling
Core hole collar, trace and ID
RC collar, trace and ID (prefixed RW ...)
AC collar
Section 6389700m N
0 2 50 m
T O M I N G L E Y G O L D P R O J E C T
R o s w e ll t o S a n A n to n io
R oad
Kyalite
R osew ood Fault
M CP070
RC001 RC003 RW D001
RC002 RC004
RC007 RC008 RC009 RC005
RC006
RC010 RC011 RC012 RC013
RC018 RC014 RC015 RC016 RC017
RC019 RC020
RC021
RC022 RC023 RC024
RC048 RC049
RC046 RC047
RC044 RC045
RC027 RC028
RC026
RC025
RW D002
RC029
RC030
RC031
RC032
RC033
RC035
RC034
RC036RC040
RC037
RC038 RC039
RC041 RC042
RC043
H w y
N ew ell
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Tomingley Gold Project – Prospect Detail Alkane Resources Ltd 100%

San Antonio Prospect

High grade gold mineralisation has been intersected by reverse circulation (RC) and diamond core drilling in the San Antonio prospect area that has only been previously tested by shallow and broadly spaced air core drilling. The drilling was conducted on nominal 80 metre spaced traverses with drill holes spaced 60 metres apart, comprising 26 drill holes for a total of 5,577 metres.

The San Antonio prospect is located south of the Roswell prospect, separated by the Rosewood Fault. Mineralisation at San Antonio is presently defined with RC and diamond core drilling over a strike length of approximately 800 metres that is open along strike and down dip.

The drilling has focussed on a north to north‐northeast striking, sub‐vertically dipping, deformed and attenuated andesitic volcanic stratigraphy of the Ordovician Mingelo Volcanic Belt. The belt is approximately 600 metres wide, and bound on both sides by Ordo‐Silurian siliciclastic metasediments of the Cotton Formation. San Antonio is located south of the northwest trending Rosewood Fault. This fault, originally identified in the magnetics, appears dextral and is of a similar orientation to the structure that dextrally displaces the Caloma deposits from the Wyoming deposits that is positioned in the centre of TGO. These important cross‐cutting structures can cause transpression usually after an intense period of compression in periods of orogeny, resulting in suitable volcanic host rocks to act as structural buttresses in which hydrothermal fluids pond and precipitate gold in.

Lithogeochemistry has identified two phosphorous enriched lithological units within the volcanic stratigraphy. In particular, a phosphorous enriched andesite unit that appears to host the majority of mineralisation at San Antonio and Roswell prospects. This unit is approximately 60 metres thick, a similar thickness to the Wyoming One andesite that hosts the +300koz deposit (open cut now mined) and is mapped over a strike length of approximately 2 kilometres. The andesites are important hosts to structural zones generated by a competency contrast between the ‘brittle’ volcanics and ‘ductile’ volcaniclastic meta‐sediments.

High grade gold mineralisation was intersected at San Antonio prospect in ten of the eleven drilling traverses with a combined strike length of 800 metres, with substantial results of:

RWRC030	8 metres grading 6.10g/t Au from 61 metres;
incl	1 metre grading 32.90g/t Au from 64 metres;
RWRC036	12 metres grading 4.01g/t Au from 126 metres;
incl	3 metres grading 11.55g/t Au from 129 metres;
RWRC038	24 metres grading 5.08g/t Au from 78 metres;
incl	6 metres grading 13.83g/t Au from 78 metres;
and	9 metres grading 1.08g/t Au from 132 metres;
and	30 metres grading 1.30g/t Au from 156 metres;
incl	3 metres grading 4.30g/t Au from 166 metres;
RWRC044	51 metres grading 2.52g/t Au from 39 metres;
incl	18 metres grading 5.34g/t Au from 57 metres;
and	9 metres grading 1.69g/t Au from 96 metres;

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RWRC045 33 metres grading 4.37g/t Au from 141 metres; incl 9 metres grading 12.25g/t Au from 141 metres; RWRC046 6 metres grading 3.69g/t Au from 63 metres; and 6 metres grading 5.06g/t Au from 75 metres; and 21 metres grading 1.24g/t Au from 120 metres; RWRC047 39 metres grading 6.09g/t Au from 153 metres to end of hole; incl 9 metres grading 10.45g/t Au from 153 metres; also 6 metres grading 15.41g/t Au from 180 metres.

Mineralisation is logged as quartz‐carbonate‐pyrite‐arsenopyrite veins hosted in phyllic altered feldspar phyric andesites. The mineralisation appears to be constrained as steep east dipping sheeted veins, striking north, within subvertical stratigraphy comprising of ‘brittle’ andesites interlayered with ‘ductile’ volcaniclastics metasediments. The sheeted vein systems range from 5 to 20 metres in width.

The mineralisation is occasionally displaced by post mineralisation dolerite dykes. These dolerites are also common at the Roswell prospect and the Caloma deposit at TGO with an orientation of steeply dipping to the north‐northeast, striking west‐northwest.

Additional drilling (totalling 3,000 metres) is underway to test the 300m undrilled strike between the Roswell and San Antonio prospects.

San Antonio Section 6389700mN

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613600m E 613700m E 613800m E
24m @ 5.08g/t Au from 78m
incl 6m @ 13.83g/t Au from 78m
200m 200m
9m @ 1.08g/t Au from 132m
30m @ 1.30g/t Au from 156m
incl 3m @ 4.30g/t Au from 166m
6m @ 1.88g/t Au from 165m
100m 100m
12m @ 1.31g/t Au from 204m
incl 3m @ 3.11g/t Au from 210m
6m @ 1.17g/t Au from 235m
S a n A n t o n i o P r o s p e c t
S e c t i o n 6 3 8 9 7 0 0 m N
0 100
R W R C 0 3 8 - 3 9
RW RC038 RW RC039
20 0
2 5 8m
100
10 0
200
25 6m
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San Antonio Sections 6390240mN and 6390320mN

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613700m E 613800m E 613900m E
6m @ 4.70g/t Au from 48m
6m @ 5.06g/t Au from 75m
200m 200m
21m @ 1.24g/t Au from 120m
incl 3m @ 3.01g/t Au from 120m
100m 39m @ 6.09g/t Au from 153m to EO H 100m
incl 9m @ 10.45g/t Au from 153m
also 6m @ 15.41g/t Au from 180m
S e c t i o n 6 3 9 0 3 2 0 m N
R W R C 0 4 6 - 4 7
613700m E 613800m E 613900m E
Alluvium
51m @ 2.52g/t Au from 39m Dolerite dykes
incl 18m @ 5.34g/t Au from 57m (East ‐ W est trending)
Cotton Fm ‐ Pelitic siltstone
200m H ornblende + plagioclase
phyric diorite
9m @ 1.69g/t Au from 96m U ndiff volcaniclastic
sedim ents
Volcaniclastic conglom erate
Feldspar‐phyric andesite
3m @ 1.22g/t Au from 126m (elevated P)
Feldspar‐phyric andesite
M ineralisation
33m @ 4.37g/t Au from 141m
incl 9m @ 12.25g/t Au from 141m
100m 100m
0 100
Al kane Resour ces Lt d
T O M IN G L E Y G O L D P R O J E C T
S a n A n t o n i o P r o s p e c t
S e c t i o n 6 3 9 0 2 4 0 m N
R W R C 0 4 4 - 4 5
RW AC058 RW AC060
RW RC046 RW AC059 RW RC047 RW AC061 RW AC062RW AC097
2 0 4m
200m
2 52 m
RW RC044 RW RC045
200m
25 0 m
200m
1 9 2 m
100m
30m
59 m
100m
52m
57 m
64 m
72m
78m
100m 100m
M ingelo Volcanics
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Roswell Prospect

Significant gold mineralisation was confirmed over a strike length of 350 metres including the recently announced multiple high grade zones intercepted at the Roswell prospect (ASX Announcement 1 February 2019). The highest grade mineralisation intercepted at Roswell (drill hole RWRC023 39m @ 4.49g/t Au including 9m @ 8.34g/t Au) is approximately 150 metres north of the regional northwest trending Rosewood Fault. RC and diamond core drilling of this previously untested area between the northwest structure and the southernmost traverse (includes RWRC023) has commenced.

El Paso Prospect

The El Paso prospect has been predominantly tested by nominal 200 metre spaced air core drilling traverses. A previous RC drilling program was incomplete and terminated early due to poor penetration through the deep alluvial sands. Diamond core drilling has intersected significant quartz veining with visible gold along the western contact of an intensely sericite altered porphyritic monzodiorite. The previous drilling has confirmed the continuation of a high gold grade structure with intersections of EPAC089 (11 metres grading at 2.82g/t Au – ASX Announcement 10 August 2017) and EPD004 (2.6 metres grading at 6.31g/t Au – ASX Quarterly Activities Announcement 27 April 2018), with mineralisation and alteration evident over a 1,000 metre strike length.

A nine hole RC drilling program totalling approximately 2,500 metres was recently completed to test the high grade gold structure where the cover sequence is substantially shallower. Assay results are pending, with reporting expected in May.

Peak Hill Gold Mine

The Peak Hill deposit is interpreted as a high sulphidation epithermal system probably related to a deeper porphyry magmatic source. The deposit is hosted by strongly deformed and hydrothermally altered Ordovician aged volcanoclastic rocks which are predominantly andesitic volcanoclastic breccias, lesser sandstone/siltstone units, minor lava and black mudstones, similar to the sequence at Tomingley. A revamped resource estimate was reported (ASX Announcement 18 October 2018) of 1.02 million tonnes grading 3.29g/t gold and 0.15% copper (108,000oz).

A core drilling program comprising 10 holes of approximately 3,000 metres commenced early in 2019 to confirm high grade zones within the large silica‐sulphide deposit and provide samples for metallurgical testing. The drilling program is now complete, the processing and sampling of the core for assay is underway.

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TOMINGLEY GOLD PROJECT DRILLING – March 2019 (>0.25g/t Au)

TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)
Hole ID	Easting	Northing	Dip	Azimuth	Total	Interval	Interval	Intercept	Au	Prospect
	(MGA)	(MGA)		(Grid)	Depth	From(m)	To(m)	(m)	(g/t)
RWD002	613800	6390101	‐60	270	372.3	167.6	173	5.4	3.64	San Antonio
incl						169	170	1	14.25
and						180	181	1	0.26
and						188	190	2	0.86
and						193.85	194.75	0.9	0.48
and						203	203.6	0.6	1.07
and						247	250	3	1.46
RWRC025	613840	6390098	‐60	270	126	74	79	5	2.45
incl						75	78	3	3.89
RWRC027	613789	6390159	‐60	270	210	30	31	1	0.33
and						33	34	1	0.30
and						39	40	1	1.08
and						46	47	1	1.78
and						51	57	6	2.88
incl						52	55	3	4.98
and						195	197	2	0.32
and						208	209	1	0.94
RWRC028	613849	6390158	‐57	270	177	147	148	1	0.37
and						155	157	2	1.92
RWRC030	613827	6390014	‐57	270	210	61*	69	8	6.10
incl						64	65	1	32.90
RWRC032	613771	6389963	‐57	270	288	223	224	1	0.74
and						230	231	1	0.32
and						233	244	11	2.01
and						250	252	2	4.40
and						261	265	4	0.46
and						267	269	2	3.12
incl						267	268	1	6.05
and						272	273	1	1.01
and						279	285	6	1.11
RWRC033	613820	6389949	‐57	264	210	81	82	1	0.45
and						186	190	4	1.50
incl						188	189	1	3.71
and						193	194	1	3.11
and						195	196	1	0.35
RWRC035	613799	6389883	‐57	270	198	180	183	3	0.38
RWRC036	613738	6389797	‐57	270	144	66	69	3	0.41
and						105	108	3	2.22
and						126	138	12	4.01
incl						129	132	3	11.55
RWRC038	613718	6389699	‐57	270	256	78	102	24	5.08
incl						78	84	6	13.83
and						132	141	9	1.08
and						156	186	30	1.30
incl						166	169	3	4.30

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		TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – March 2019(>0.25g/t Au)
Hole ID	Easting	Northing	Dip	Azimuth	Total	Interval	Interval	Intercept	Au	Prospect
	(MGA)	(MGA)		(Grid)	Depth	From(m)	To(m)	(m)	(g/t)
RWRC039	613780	6389699	‐57	270	258	165	171	6	1.88
and						180	183	3	0.36
and						204	216	12	1.31
incl						210	213	3	3.11
and						231	237	6	1.17
RWRC040	613747	6389792	‐57	270	188	120	123	3	1.10
and						132	150	18	0.58
and						159	165	6	1.02
RWRC041	613705	6389625	‐57	270	262	75	78	3	3.78
and						81	84	3	0.42
and						99	102	3	0.57
and						108	111	3	0.64
and						210	216	6	0.52
RWRC042	613769	6389624	‐57	270	192	159	162	3	3.19
RWRC044	613800	6390239	‐57	270	252	39	90	51	2.52
incl						57	75	18	5.34
and						96	105	9	1.69
and						108	111	3	0.75
and						114	117	3	0.55
and						126	129	3	1.22
and						132	135	3	0.67
RWRC045	613860	6390236	‐57	270	204	141	174	33	4.37
incl						141	150	9	12.25
RWRC046	613810	6390320	‐57	270	250	48	51	3	0.34
and						63	69	6	3.69
incl						66	69	3	5.88
and						75	81	6	5.06
and						120	141	21	1.24
incl						120	123	3	3.01
RWRC047	613869	6390318	‐57	270	192	153	192**	39	6.09
incl						153	162	9	10.45
also						180	186	6	15.41
RWRC048	613830	6390399	‐57	270	219	54	57	3	0.36
and						123	132	9	1.68
and						183	186	3	0.41

• base of alluvium. **end of hole. True widths are approximately 70% of intercept width.

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 David Meates MAIG, (Alkane Senior Exploration Geologist) 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 Meates 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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Previously Reported Information

This report includes information that relates to Mineral Resources which were prepared and first disclosed under the JORC Code 2012. The information was extracted from the Company’s previous ASX announcement "Peak Hill Gold Mine Resource Update" dated 18 October 2018. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which any Competent Person’s findings were presented have not been materially modified from the original market announcement.

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 the 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 objective of 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), large in‐ ground resource of zirconium, hafnium, niobium, yttrium and rare earth elements. As it is an advanced poly‐metallic 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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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 TOMINGLEY GOLD 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 on the drill rig. The cyclone is cleaned regularly to minimise any contamination. Half core samples are collected at generally one metre intervals. Drilling, sampling and QAQC procedures are carried out to industry standards. RC drilling – samples are collected per metre with the total one metre sample (~20‐30kg) delivered via cyclone with a cone splitter into a large plastic bag (~20‐30kg) and the split sample into a calico bag (~2‐ 3kg)which is retained for future use if required. A sub‐sample of approximately 1kg is spear sampled from each plastic bag and composited to make a three metre sample interval. The one metre intervals that form the three metre composite samples which then assay ≥0.20 g/t Au or with high As are chosen for resplit. The selected intervals have their split sample calico bags and are re‐submitted to the laboratory for re‐assay. Core is cut in half using an Almonte diamond cutting saw. 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 an aqua regia or multi‐acid digest with a AES, 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).	RC drilling using 110mm rods with a 144mm face sampling hammer. Core drilling completed as an HQ tail on an RC precollar. Core orientated using a Reflex tool
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.	Sample quality is assessed by the sampler by visual approximation of sample recovery and if the sample is dry, damp or wet. A high capacity RC rig was used to enable dry samples collected. Drill cyclone and sample buckets are cleaned between rod changes and after each hole to minimise cross‐hole contamination. Core drilling completed using HQ triple tube to maximise core recovery. 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.	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.

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Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
	 The total length and percentage of the relevant intersections logged.	A representative sample of each one metre interval is retained in chip trays for future reference. Half core samples are retained in trays for future reference. All samples have been geologically logged by qualified geologists.
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.	Core is cut with half core submitted to the laboratory. Initially each one metre interval is spear sampled and composted to then form a three metre sample which is collected in a calico sample bag and forwarded to the laboratory. The one metre intervals that form the three metre composite samples which then assay ≥0.20 g/t Au or with high As are resplit using a riffle splitter into a separate calico bag and are re‐submitted to the laboratory for re‐assay. Laboratory Preparation – the entire 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 ‐ ~1:50 alternating with CRM. Duplicate samples are collected for both composite intervals and re‐split intervals. 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 aqua regia or multi‐acid with each element determined by ICP Atomic Emission Spectrometry or ICP Mass Spectrometry. 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.

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Criteria	JORC Code explanation	Commentary
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.  Discuss any adjustment to assay data.	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. 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. 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 geological mapping and identifying new zones of mineralisation. Reconnaissance drilling only, no resource estimations being undertaken. Three metre sample composites collected as described above.
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.	Early phase drilling at San Antonio prospect, however core hole RWD002 measured mineralised structures dipping 85oto the east. Drill holes are collared 60oto the west which is considered practical for a drill rig and approximately 70% to intersecting the mineralised structures. 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 1.5 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.

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Criteria	JORC Code explanation	Commentary
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.
Section 2 Reporting of Exploration Results (Criteria listed in theprecedingsection also applyto this section.)		Commentary Drilling completed on exploration licence number 5675 is owned 100% by Alkane. All exploration licences are in good standing. EL5675 expires on 17 January 2023 Significant exploration has been completed in the area by Alkane since 2001 and the Tomingley Gold Mine was commissioned in 2014. Minor work was completed by previous companies in EL5675 area covered by this announcement but many holes did not penetrate the cover sequence. Mineralisation at Tomingley is associated with quartz veining and alteration focused within porphyritic sub‐volcanic andesite sills and adjacent volcaniclastic sediments. The deposits appear to have formed as the result of a competency contrast between the porphyritic sub‐volcanic sills and the surrounding volcaniclastic sediments, with the sills showing brittle fracture and the sediments ductile deformation, and have many similarities to well documented orogenic ‐ lode‐style gold deposits. Geological nature of the Tomingley Deposits is well documented elsewhere. Geological nature of Peak Hill is well documented elsewhere. Geological nature of Glen Isla is fine grained low‐sulfidation epithermal Au mineralisation that was discovered in Middle Devonian continental felsic volcanic sequences (Dulladery Volcanics) in the Young Zone. The gold prospective Dulladerry Volcanics host a number of low sulfidation epithermal occurrences including the Mt Aubrey gold deposit (120,000 t @ 3.3 g/t Au) and are broadly similar in age (~370Ma) to dates published (~350 ‐ 360 Ma) for volcanic units that host well known Drummond Basin epithermal Au deposits in north Queensland. Dulladerry Volcanics include flow banded rhyolites and quartz feldspar porphyries and are locally bimodal, with amygdaloidal basalts identified at Glen Isla and Mt Aubrey. See body of announcement and figures.
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 number 5675 is owned 100% by Alkane.
		All exploration licences are in good standing. EL5675 expires on 17 January 2023
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	Significant exploration has been completed in the area by Alkane since 2001 and the Tomingley Gold Mine was commissioned in 2014. Minor work was completed by previous companies in EL5675 area covered by this announcement but many holes did not penetrate the cover sequence.
Geology	 Deposit type, geological setting and style of mineralisation.	Mineralisation at Tomingley is associated with quartz veining and alteration focused within porphyritic sub‐volcanic andesite sills and adjacent volcaniclastic sediments. The deposits appear to have formed as the result of a competency contrast between the porphyritic sub‐volcanic sills and the surrounding volcaniclastic sediments, with the sills showing brittle fracture and the sediments ductile deformation, and have many similarities to well documented orogenic ‐ lode‐style gold deposits. Geological nature of the Tomingley Deposits is well documented elsewhere. Geological nature of Peak Hill is well documented elsewhere. Geological nature of Glen Isla is fine grained low‐sulfidation epithermal Au mineralisation that was discovered in Middle Devonian continental felsic volcanic sequences (Dulladery Volcanics) in the Young Zone. The gold prospective Dulladerry Volcanics host a number of low sulfidation epithermal occurrences including the Mt Aubrey gold deposit (120,000 t @ 3.3 g/t Au) and are broadly similar in age (~370Ma) to dates published (~350 ‐ 360 Ma) for volcanic units that host well known Drummond Basin epithermal Au deposits in north Queensland. Dulladerry Volcanics include flow banded rhyolites and quartz feldspar porphyries and are locally bimodal, with amygdaloidal basalts identified at Glen Isla and Mt Aubrey.
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.	See body of announcement and figures.

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Criteria	JORC Code explanation	Commentary
	 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.	The drilling program is reconnaissance in nature with 26 holes completed. Only drill holes with samples assaying ≥0.25g/t Au have been reported. Impractical to list all holes completed.
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 lower cut of 0.25g/t Au. No top cut has been used. 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’).	The mineralisation is structurally complex and drilling is reconnaissance in nature and there is currently minimal understanding of the true widths. Down hole lengths reported – true widths estimated to be 70% of the down hole lengths.
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 and sections 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.	The drilling program is reconnaissance in nature with 26 holes completed. Only drill holes with samples assaying ≥0.25g/t Au have been reported. Impractical to list all holes completed.
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.	No other exploration data is available to assist in interpretation.
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 licence 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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