Alkane Resources — Capital/Financing Update 2020

Mar 4, 2020

ASX and MEDIA RELEASE

5 March 2020

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Export Finance Australia Confirms Interest in Dubbo Project Financing

Export Finance Australia (EFA) is Australia’s Export Credit Agency, 100% owned by the Australian Commonwealth Government, with a mandate to support Australian businesses as they seek to develop new Australian export markets, with a focus on the “Critical Minerals” sector.

Alkane Resources Ltd (ASX: ALK) (“Alkane”), through its’ wholly owned subsidiary Australian Strategic Materials (“ASM”) has been engaged with the Australian Commonwealth Government for many years, but particularly in recent months as it works to assist private business in developing Australia’s “Critical Minerals” sector. Engagement has been with Government Departments directly, as well as EFA, Austrade and the Critical Minerals Facilitation Office. The focus for ASM has been on finding potential strategic investors, offtake parties and debt financiers, including the Australian and foreign governments, that would assist ASM in the development of the Dubbo Project.

The Dubbo Project is an advanced polymetallic project with large in-ground resource of zirconium, hafnium, niobium, yttrium and rare earth elements with a potential mine life of 75+ years. This polymetallic project is a potential strategic and independent supply of critical minerals for a range of sustainable technologies and future industries. The Dubbo Project is development ready, subject to financing, with the mineral deposit and surrounding land acquired, all major State and Federal approvals in place and extensive piloting and engineering completed. The Dubbo Project is a key asset of ASM.

EFA has confirmed in writing to Alkane that:

• EFA would be pleased to be part of the financing consortium in providing the required financial support for the development of the Dubbo Project, subject to finalisation of normal due diligence, acceptable financing structure and the resultant transaction meeting the EFA’s eligibility and credit requirements;

• The Dubbo Project closely aligns to the recently announced initiative by the Australian Government to develop its “Critical Minerals” sector; and

• EFA has provided a letter of support to strengthen ASM’s ongoing discussions with potential strategic investors, other Government financiers and offtake parties for the Dubbo Project.

: 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 :

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

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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With EFA support confirmed at this level, ASM will seek to escalate the engagement with strategic investors and offtake parties who have previously stated that the assembly of a suitable financing consortium may shift their preparedness to progress with ASM on the Dubbo Project development.

Alkane’s Managing Director, Nic Earner, said “After extensive engagement with the Australian Government, particularly recently as part of its Critical Minerals initiative, it is pleasing to see that stated support is translating into preparedness for government agencies to act, in this case with EFA providing confirmation of its interest in being part of the financing consortium for the Dubbo Project.”

ASM’s Managing Director, David Woodall, said “It is very pleasing to see positive action by EFA. I look forward to continuing ASM’s discussions with strategic partners and offtake parties, particularly with the ongoing trade support and now potential financial support from the Australian Government. It is very clear in today’s world that security of supply chains in all manner of materials is a pressing issue, and security of Critical Minerals is one supply chain that the Australian Government is clearly identifying as a priority for government backing.”

This document has been authorised for release to the market by Nic Earner, Managing Director. ABOUT ALKANE ‐ www.alkane.com.au - ASX: ALK

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Alkane is a gold production company with a multicommodity exploration and development portfolio. Alkane’s projects are predominantly in the Central West region of NSW, but extend throughout Australia through investments in other gold exploration and mining companies.

Alkane’s gold production is from the Tomingley Gold Operations (TGO) which has been operating since early 2014 and it’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 the Central West NSW prospective for gold and copper. The recently announced significant porphyry gold-copper mineralisation intersected at Boda is an example of this potential.

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 – ASM EFA 5 March 2020