Alkane Resources — Capital/Financing Update 2019

Jan 31, 2019

ASX and MEDIA RELEASE

1 February 2019

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Multiple High Grade Gold Zones In Tomingley Regional Program

• An extensive regional exploration program focused on the immediate mine area to the south of Tomingley has continued as part of the plan to provide additional ore feed, either via open cut or underground, for the future of the Tomingley Gold Operations (TGO).

• RC and diamond core drilling is underway to further understand the potential for gold resources at Roswell, San Antonio and El Paso prospects. These prospects have a cumulative strike length of 2,500 metres.

• RC drilling results were received for the Roswell prospect confirming multiple high grade gold lodes at Roswell Prospect 3 kilometres south of the TGO mine with intercepts of:

RWRC023 39 metres grading 4.49g/t Au from 123 metres;

incl 9 metres grading 8.43g/t Au from 123 metres; and 6 metres grading 4.70g/t Au from 189 metres; and 21 metres grading 2.46g/t Au from 207 metres;

• incl 8 metres grading 4.83g/t Au from 217 metres;

and 26 metres grading 2.48g/t Au from 234 metres to end of hole; incl 3 metres grading 5.57g/t Au from 234 metres; also 3 metres grading 4.63g/t Au from 249 metres.

• Significant gold mineralisation at Roswell is confirmed over a strike length of 350 metres. RWRC023 was drilled on the southernmost RC drill traverse and high grade gold mineralisation is open to the south.

: 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

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 :

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 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, and continuing, 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. This program has included the addition of approximately 110km[2] to the tenement package to the east of TGO.

Numerous prospects have been identified over the 60km strike extent of complexly folded and faulted Ordovician aged volcanics, intrusives and sediments. Much of the belt is covered by younger, transported sand and clay sediments which mask the basement geology and mineralisation. To the east of TGO the tenements cover Devonian aged, Dulladerry Volcanics, which host epithermal low sulphidation gold mineralisation at Glen Isla, 6km from TGO. The region has many small historic workings, modern mining commenced with the development of the Northparkes porphyry style copper-gold operations in 1994 to the present; and Alkane’s Peak Hill heap leach gold operation from 1996 to 2005.

As part of the recent program assay results were received from 19 reverse circulation (RC) drill holes completed at the Roswell prospect, 3km from TGO, for a total of 4,266 metres.

The RC drilling undertaken:

• had several drill holes terminated in mineralised intervals due to the drill rig capacity and/or moderate water flows;

• was completed along 60 metre spaced traverses; and

• 3 metre composite samples were assayed. Approximately half of the 1 metre re-splits have been received to date.

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

The 11,500 metre regional RC drilling program is continuing, testing the gold resource potential of the Roswell, San Antonio and El Paso prospects.

Core drilling is also underway at Peak Hill to provide metallurgical samples within the recently revised resource.

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

148°15' E
EL5942
EL8794
Coldstream Tomingley Two
Allendale
EL6085 Tomingley One
EL6085
Patons Tomingley
Caloma ML1684 TGO
Wyoming EL5830
Myalls United
McLeans Glen Isla
Roswell
San Antonio
El Paso EL8676
Smiths
EL5675
Cemetery
EL5942
Peak Hill Gold Mine
Peak
Hill
EL6319
32°45' S 0 10km
Black Snake TOMINGLEY GOLD PROJECT
Tenement Location
Trewilga
Highway
Rd
Gundong
Newell
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2/13

Alkane Resources Ltd – TGP Regional Drilling Update 1 February 2019

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TGP Regional Geology and Prospects McLeans to El Paso

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614000mE Myalls United
EL8676
6392000mN
Target size of Wyoming
One porphyry sill
McLeans
8m @ 0.80g/t Au from 152m
16m @ 1.90g/t Au from 76m incl 3m @ 1.51 from 156m
incl 7m @ 3.43 from 78m
11.55m @ 2.15g/t Au from 323.45m
4m @ 2.29g/t Au from 98m incl 2.25m @ 4.00g/t from 325.05m
and 7.65m @ 2.50g/t Au from 340.60m
incl 2.95m @ 4.48g/t Au from 345.30m
18m @ 0.64g/t Au from 90m
incl 3m @ 1.92g/t from 99m 5m @ 1.85g/t Au from 184m
Roswell and 3m @ 2.07g/t from 220m
12m @ 1.52g/t Au from 216m and 1m @ 2.38g/t Au from 238m
incl 3m @ 3.24g/t Au from 219m
and 9m @ 1.18g/t Au from 243m
and 3m @ 1.23g/t Au from 273m 39m @ 4.49g/t Au from 123m
and 18m @ 2.28g/t Au from 285m incl 9m @ 8.43g/t Au from 123m
incl 3m @ 9.98g/t Au from 294m and 6m @ 4.70g/t Au from 189m
and 21m @ 2.46g/t Au from 207m
3m @ 1.81g/t Au from 54m incl 8m @ 4.83g/t Au from 217m
and 26m @ 2.48g/t Au from 234m
7m @ 1.48g/t Au from 89m (EOH)
6390000mN incl 1m @ 4.66 from 95m (EOH)
Rockchip
15m @ 1.29g/t Au from 57m San 3.01g/t Au
3m @ 1.10g/t Au from 60m Antonio
Gulf
Hornblende + plagioclase-phyric diorite
Cotton Formation siltstone
Monzodiorite sill
Volcaniclastic sediments
Volcaniclastic conglomerate
8m @ 0.60g/t Au from 225m Feldspar phyric andesite
EL5675 7m @ 1.01g/t Au from 103m 2.1m @ 4.83g/t Au from 303.3m Andesite
Drilling 2017- Phase 1 to 3;
6m @ 0.95g/t Au from 101m
AC & RC / DDH ( > 0.25g/t)
El Paso Failed to penetrate cover
Drilling 2018- Phase 4 to 6;
5m @ 1.67g/t Au from 88m AC & RC ( > 0.25g/t >1g/t)
DDH (> 1g/t Au)
0.7m @ 18.3g/t Au from 226.3m
8m @ 2.23g/t Au from 66m
incl 2m @ 5.05g/t
2.6m @ 6.31g/t Au from 336m Pre 2017 Alkane drilling;
AC, RC & DDH
11m @ 2.82g/t Au from 32m 0 1km
10m @ 0.95g/t Au from 80m
TOMINGLEY GOLD PROJECT
McLeans to El Paso
Lane
ML1684
Road
Kyalite
EL5830
EL5675
McNivens
Rosewood Fault
Hwy
Newell
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Roswell Prospect

Further high grade gold mineralisation has been intersected by reverse circulation (RC) drilling south of the high grade gold mineralisation intersected by core hole RWD001 – (ASX announcement 19 October 2018). The RC drilling traverses were 60 metres apart comprising 19 holes for a total of 4,266m and completed south of drill hole RWD001.

3/13

Alkane Resources Ltd – TGP Regional Drilling Update 1 February 2019

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The mineralisation at the Roswell prospect has been defined by RC and diamond core drilling over a strike length of approximately 350 metres and remains open to the north and south. The highest grading mineralisation at Roswell was intersected by RWRC023 on the southernmost traverse completed to date.

The drilling has defined a fault bounded section of volcanic stratigraphy that has been rotated from striking north to striking northnortheast. The mineralisation at Roswell appears hosted by two ‘brittle’ volcanic units (monzodiorite and andesite) as per the structural setting observed at Tomingley. At Tomingley the volcanics host structural zones generated by a competency contrast between the ‘brittle’ volcanics and ‘ductile’ volcaniclastic meta-sediments. Porphyritic monzodiorites host the majority of the orogenic gold mineralisation mined at Tomingley.

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EL5675 61 4000 mE 61 4000 mE McLeans
Prospect
639 1000 mN
Roswell
Prospect
639 0800 mN
X-sec 6390700mN
Cotton Formation siltstone
Core hole collar and trace- Roswell Porphyritic sill
All holes prefixed by RWRC... RC collar and trace - Roswell Volcaniclastic sediments
639 0600 mN RC collar and trace- McLeans Feldspar phyric Andesite
AC collar location 0 100m
RC or DDH trace with downhole Au ppm
0.25 to 0.5
0.5 to 0.11.0 to 2.5 TOMINGLEY GOLD PROJECT
> 2.5 Roswell Prospect
Kyalite
Road
Rosewood Fault
MCP070
RWD001
001
004
002
003
009
006 007 008
010 011 012
013
018 014 015 016 017
019 020 021
022 023 024
RWD001
024
MCP070
005
Newell
Highway
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Some holes terminated in mineralisation due to the drill rig capacity and/or intersecting moderate water flows. Gold mineralisation was intersected in all four traverses with significant results of:

RWRC008	5 metres grading 1.85g/t Au from 184 metres;
and	3 metres grading 2.07g/t Au from 220 metres
RWRC011	4 metres grading 2.29g/t Au from 98 metres;
RWRC019	18 metres grading 0.64g/t Au from 90 metres;
incl	3 metres grading 1.92g/t Au from 99 metres;
RWRC020	12 metres grading 1.52g/t Au from 216 metres;
incl	3 metres grading 3.24g/t Au from 219 metres;
and	9 metres grading 1.18g/t Au from 243 metres;
and	3 metres grading 1.23g/t Au from 273 metres;
and	18 metres grading 2.28g/t Au from 285 metres;
incl	3 metres grading 9.98g/t Au from 294 metres;
RWRC023	39 metres grading 4.49g/t Au from 123 metres;
incl	9 metres grading 8.43g/t Au from 123 metres;
and	6 metres grading 4.70g/t Au from 189 metres;
and	21 metres grading 2.46g/t Au from 207 metres;
incl	8 metres grading 4.83g/t Au from 217 metres;
and	26 metres grading 2.48g/t Au from 234 metres to end of hole;
incl	3 metres grading 5.57g/t Au from 234 metres;
also	3 metres grading 4.63g/t Au from 249 metres.

4/13

Alkane Resources Ltd – TGP Regional Drilling Update 1 February 2019

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Mineralisation intersected by the recent RC drilling, was logged as quartz-carbonate-pyrite-arsenopyrite veins hosted in phyllic altered feldspar phyric andesites. The 3D orientation of the mineralisation is still being determined but the current interpretation indicates a moderately east dipping sheeted vein system striking north that is likely thrust bounded at the footwall to the mineralisation.

The mineralisation is displaced by a swarm of post mineralisation dolerite dykes. Dolerite dykes are common at the Caloma deposit at TGO with a similar orientation of dipping steeply to the NNE, striking WNW.

The highest grade mineralisation intercepted at Roswell (RWRC023) is approximately 150 metres north of a regional NW trending structure named the Rosewood Fault. The Rosewood Fault is of a similar orientation to the structure that dextrally displaces the Caloma deposits from the Wyoming deposits, positioned in the centre of the Tomingley ‘gold camp’, and may have influence on the location of significant mineralisation.

Planning for additional RC drilling south of Roswell towards the Rosewood Fault is underway.

San Antonio Prospect

Previous air-core drilling by Alkane has identified strong gold mineralisation with a strike length of over 700 metres at the San Antonio prospect. The drilling has mapped prospective volcanic units hosting gold mineralisation in a proximal position to the Cotton Formation sediment contact similarly observed at the Tomingley gold deposits. The mineralised bedrock lies beneath a moderate alluvium overburden ranging between 20-30 metres. Gold mineralisation intersected in the bottom of air core drill hole RWAC023 (7m @ 1.48g/t Au from 89m including 1m @ 4.66g/t Au from 95m to end of hole – (ASX Quarterly Activities announcement 27 April 2018) is being tested at depth by one diamond core drill hole of approximately 350 metres. 21 RC drill hole program of approximately 5,000 metres is also underway to test the gold mineralisation at San Antonio prospect.

El Paso Prospect

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 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 is planned to test the high grade gold structure where the cover sequence is substantially shallower.

5/13

Alkane Resources Ltd – TGP Regional Drilling Update 1 February 2019

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Roswell Section 6390700mN

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

300m
613900mE 614000mE 614100mE
200m
6m @ 4.70g/t Au from 189m
100m
39m @ 4.49g/t Au from 123m
incl 9m @ 8.43g/t Au from 123m
21m @ 2.46g/t Au from 207m
incl 8m @ 4.83g/t Au from 217m
26m @ 2.48g/t Au from 234m
incl 3m @ 5.57g/t Au from 234m
also 3m @ 4.63g/t Au from 249m
Alluvium
0m
Dolerite dykes 0 100
(East - West trending)
Pelitic siltstone Al kane Resour ces Lt d
Monzodiorite sill TOMINGLEY GOLD PROJECT
Undifferentiated volcaniclastic sediments Roswell Prospect
Feldspar-phyric andesite Section 6390700mN
Mineralisation RWRC022-24
260m
5.57
1.34
2.74
0.52
1.57
4.63
2.17
2.09
1.24
250
0.26
200
210m
1.99
0.5
0.26
2 .5 74 .5 71 2 . 24 .0 15 .41 .6 30 .7 96 . 1 43 .8 70 . 5 60.8
200
200
210m 0.57
7.4
150 150
0.51
2.71
1.59
6.75.53
4.9
2.16
0.54
6.72
1.76
0.43
4.41
0.58
3.54
17.35
100
0.5
0.89
150
50
100
50
100
50
RWRC022 RWRC023 RWRC024
Cotton Formation
Mingelo Volcanics
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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 18 October 2018) of 1.02 million tonnes grading 3.29g/t gold and 0.15% copper (108,000oz) at a 2.00g/t gold cutoff.

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.

6/13

Alkane Resources Ltd – TGP Regional Drilling Update 1 February 2019

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		TOMINGLEY GOLD PROJECT DRILLING – January 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – January 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – January 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – January 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – January 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – January 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – January 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – January 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT DRILLING – January 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)
RWRC007	614120	6390940	-60	270	225	157	158	1	0.28	Roswell
and						161	165	5	0.35
and						168	169	1	1.48
and						170	171	1	0.45
and						177	178	1	0.43
and						182	183	1	0.27
and						185	186	1	0.42
and						203	204	1	0.26
RWRC008	614179	6390942	-60	270	246	62	71	9	0.39
and						77	78	1	1.45
and						184	189	5	1.85
and						190	192	2	0.38
and						198	202	4	0.29
and						207	210	3	1.21
incl						209	210	1	3.05
and						216	218	2	1.21
and						220	223	3	2.07
and						227	230	3	0.39
and						235	236	1	0.30
and						238	239	1	2.38
and						243	246*	3	0.99
RWRC010	614051	6390884	-60	270	204	104	107	3	0.33
and						110	112	2	0.42
RWRC011	614110	6390885	-60	270	246	98	102	4	2.29
and						111	112	1	0.48
RWRC012	614180	6390886	-60	270	246	237	246*	9	0.52
RWRC014	614020	6390820	-60	270	246	150	153	3	0.34
and						180	183	3	0.36
RWRC015	614078	6390813	-60	270	204	99	102	3	0.72
and						186	201	15	0.39
and						203	204	1	0.26
RWRC019	614030	6390760	-60	270	238	90	108	18	0.64
Incl						99	102	3	1.92
and						198	225	27	0.45
RWRC020	614105	6390765	-60	270	306	216	228	12	1.52
incl						219	222	3	3.24
and						243	252	9	1.18
and						255	258	3	0.66
and						273	276	3	1.23
and						285	303	18	2.28
incl						294	297	3	9.98
RWRC022	614000	6390700	-60	270	210	102	108	6	0.70
and						201	204	3	0.26
RWRC023	614060	6390700	-60	270	260	123	162	39	4.49
incl						123	132	9	8.43
and						174	177	3	0.43

7/13

Alkane Resources Ltd – TGP Regional Drilling Update 1 February 2019

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and						189	195	6	4.70
and						207	228	21	2.46
incl						217	225	8	4.83
and						234	260*	26	2.48
incl						234	237	3	5.57
also						249	252	3	4.63
RWRC024	614120	6390700	-60	270	210	168	171	3	0.58
and						207	210*	3	0.57

• bottom of hole. True widths not clear at this time.

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

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 mainly 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 TGO has provided the funding to maintain the project development pipeline and has assisted with the pre-construction development of the DP.

The DP is a 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.

Alkane’s most advanced gold copper exploration projects are at the 100% Alkane owned Northern Molong Porphyry Project, Wellington, Rockley and Elsienora prospects. Wellington has a small copper-gold deposit which can be expanded, while at Bodangora (NMPP) a large monzonite intrusive complex has been identified with porphyry style gold copper mineralisation. Gold and base metal mineralisation has been identified at Rockley and Elsienora.

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Alkane Resources Ltd – TGP Regional Drilling Update 1 February 2019

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	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.	RC samples are collected at one metre intervals via a cyclone on the rig. The cyclone is cleaned regularly to minimise any contamination.
	• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Drilling, sampling and QAQC procedures are carried out to industry standards.
	• 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.	RC Drilling – the total sample (~20-30kg) is delivered via cyclone into a large plastic bag 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 3 metres sample interval. The 1m intervals forming composite samples assaying ≥0.20 g/t Au or with high As are resplit using a Jones riffle splitter on the rig into a separate calico at the time of drilling and re-submitted to the laboratory for re-assay. 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 usingan aqua regia 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).	Reverse circulation (RC) drilling using 110mm rods 144mm face sampling hammer.
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed.	Sample quality is assessed by the sampler by visual approximation of sample recovery and if the sample is dry, damp or wet.
	• Measures taken to maximise sample recovery and ensure representative nature of the samples.	A high capacity RC rig was used enabling dry samples collected. Drill cyclone and sample buckets are cleaned between rod changes and after each hole to minimise cross-hole contamination.
	• 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.	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.	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).
	• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	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.

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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Criteria	JORC Code explanation Commentary	JORC Code explanation Commentary
	• The total length and percentage of the relevant intersections logged.	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.	Initially each one metre interval is spear sampled with 3m composite samples collected in a calico sample bag and forwarded to the laboratory. The 1m intervals forming composite samples assaying ≥0.20 g/t Au or with high As are resplit using a Jones riffle splitter on the rig during the time of drilling and 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.
	• For all sample types, the nature, quality and appropriateness of the sample preparation technique.	ALK sampling techniques are of industry standard and considered adequate.
	• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	Field duplicate samples collected at every stage of sampling to control procedures - ~1:50 alternating with CRM.
	• 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.	Duplicate samples are collected for both composite intervals and re-split intervals. Duplicates generally show excellent repeatability.
	• Whether sample sizes are appropriate to the grain size of the material being sampled.	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.	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 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.
	• 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.	No down hole geophysical logging or hand held XRF analyses undertaken.
	• 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. _	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.
	• The verification of significant intersections by either independent or alternative company personnel.	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.
	• The use of twinned holes.	No twinned holes have been drilled at this early stage of exploration.

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Criteria	JORC Code explanation	Commentary
Verification of sampling and assaying	• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	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.
	• Discuss any adjustment to assay data.	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.	Drill holes are laid out using hand held GPS (accuracy ± 2m) then DGPS surveyed accurately (± 0.1m) by licenced surveyors on completion.
	• Specification of the grid system used.	MGA (Zone 55), GDA94
	• Quality and adequacy of topographic control.	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.	At this early exploration stage, the data spacing is variable as the focus is on geological mapping and identifying new zones of mineralisation.
	• 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.	Reconnaissance drilling only, no resource estimations being undertaken.
	• Whether sample compositing has been applied.	3m 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.	Early phase drilling at Roswell prospect, however core hole RWD001 measured mineralised structures dipping 60oto the east. Drill holes are collared 60oto the west which is considered practical and near to optimally intersecting the mineralised structures.
	• 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.	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.
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	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 nationalpark and environmental settings.	Drilling completed on exploration licence number 5675 is owned 100% by Alkane.
	• 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.	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
	• 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 19 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.	Exploration results reported – for uncut gold grades; grades are calculated by length weighted average.

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Criteria	JORC Code explanation	Commentary
	• 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.	Reported intercepts are calculated using a lower cut of 0.25g/t Au. No top cut has been used.
	• The assumptions used for any reporting of metal equivalent values should be clearly stated.	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 not known.
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 19 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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