Alkane Resources — Capital/Financing Update 2024

Jun 23, 2024

ASX and MEDIA RELEASE

24 June 2024

==> picture [150 x 111] intentionally omitted <==

Tomingley Five Year Plan

• ➢ Planned production of 455,000 to 505,000 ounces of gold over the next five financial years, sourced from underground and open cut mining.

• ➢ AISC over the five-year period to average A$1,900/oz to $2,100/oz with costs to reduce over time as the development capital requirement decreases.

• ➢ Relocation of the Newell Highway and expansion of the existing processing plant to a nominal 1.5 million tonnes per annum rate to occur through 2025.

• ➢ ~$89m in capital for highway relocation and the expansion, in addition to current capital expenditure of ~$43m, expected to be funded from cashflow and debt. A final investment decision will be made in early calendar 2025.

• ➢ Resources at Tomingley extend beyond this five-year plan and remain open at depth and along strike at the Caloma, Caloma Two, Roswell and San Antonio deposits.

Alkane Resources Ltd (‘Alkane’) (ASX: ALK) is pleased to announce its plans for the next five years of operation at its Tomingley Gold Operations in the central west of New South Wales. These plans show Tomingley increasing production above 100,000 ounces of gold per annum, with strong resultant cash flow.

Alkane Managing Director Nic Earner said: “Tomingley has a big future ahead of it. Our five-year plan details the capital program that develops the open cut operations, expands the plant and moves the operation to deliver above 100,000 ounces of gold per year.

“The underground at Roswell has begun production, and we expect to produce over 70,000 ounces of gold next year. The paste plant and the flotation / regrind circuit are under construction with commissioning expected later this year.

“The deposits across Tomingley are open at depth and along strike and our known resources extend beyond this immediate five-year plan. We’re looking forward to delivering on this plan.”

: PAUL RYAN, CITADEL-MAGNUS, TEL +61 409 296 511

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

Level 4, 66 Kings Park Rd, West Perth WA 6005, AUSTRALIA (PO Box 768, West Perth WA 6872, AUSTRALIA) Telephone: +61 8 9227 5677 Facsimile: +61 8 9227 8178 www.alkane.com.au mail@alkane.com.au

==> picture [57 x 26] intentionally omitted <==

TOMINGLEY PRODUCTION

Background

Tomingley Gold Operations (Tomingley) is a wholly owned subsidiary of Alkane, located near the village of Tomingley, approximately 50km southwest of Dubbo in Central Western New South Wales. The gold processing plant was commissioned on time and budget in January 2014 and has been operating at the design capacity of 1Mtpa since late May 2014. Mining was originally based on four gold deposits (Wyoming One, Wyoming Three, Caloma and Caloma Two). Open cut mining from the four deposits occurred from late 2013 until early 2019, with a further cutback in Caloma from 2021 to 2023.

Development of an underground under Wyoming One commenced in late 2018, with first stope ore production occurring in late 2019. The Tomingley underground extended under Caloma Two and Caloma and continues to operate.

Following successful exploration and a substantial drill program over the 2018 to 2022 period resources and reserves were defined at the Roswell and San Antonio deposits to the south of the existing Tomingley mine. Approval was also granted in mid-2020 by the NSW Government Resources Regulator for the development of an approximately 2.5km exploration drive from the existing underground Wyoming One operation to the Roswell deposit.

Approval was granted for the underground and open cut development of the Roswell and San Antonio deposits, including relocation of the Newell Highway in early 2023, with first stope ore subsequently produced from Roswell underground in April 2024.

Past Production

Tomingley’s past production reflects the transition from an open cut to a predominantly underground operation. As well as the cost inflation seen during and post the pandemic, costs reflect the increased development and the labour-intensive nature of an underground operation with multiple development areas.

==> picture [464 x 210] intentionally omitted <==

2/9

Alkane Resources Ltd – TGO 5Y Plan – 24 June 2024

==> picture [57 x 26] intentionally omitted <==

Five Year Plan

With the development of the Roswell underground, the next five years see the development of the already approved open cut operations commencing at San Antonio. This requires the prior relocation of a section of the Newell Highway and generates sufficient ore to justify the upgrade of the Tomingley process plant to increase throughput to a nominal 1.5mtpa rate.

The high cost of the first financial year in the five-year plan reflects that decline development is accounted as sustaining capital and therefore, included in the AISC. Note that the resources at Tomingley extend beyond this five-year plan.

A summary of the anticipated mine production is given below.

Financial Years	FY24	FY25 FY26	FY25 FY26	FY27-FY29
Production Range (ozAu)	55,000 – 58,000	70,000 – 80,000	85,000 – 95,000	100,000 – 110,000
Ore Source: - Underground - Open Cut	100% 0%	100% 0%	100% 0%	60% 40%
Head Grade g/t Au	2.0	2.3	2.5	2.4
Expected AISC		2,400 – 2,600	1,800 – 2,000	1,900 – 2,100
A$/ozAu	2,150 – 2,350	1,900 – 2,100

==> picture [463 x 210] intentionally omitted <==

3/9

Alkane Resources Ltd – TGO 5Y Plan – 24 June 2024

==> picture [57 x 26] intentionally omitted <==

TOMINGLEY CAPITAL

Recent Capital Program

Since the approval of the exploration drive to Roswell in mid-2020 Alkane has:

• Purchased the land across the mining leases

• Conducted extensive resource drilling

• Constructed the ~2.5km exploration drive, including two vent rises

• Constructed a new residue storage facility

• Obtained project approvals for the expansion activities including the relocation of the Newell Highway

• Established underground mining and facilities at Roswell

• Replaced much of its underground mining fleet with new equipment

• Purchased the culverts required to move the Newell Highway

• Commenced construction of a paste plant above Roswell

• Commenced construction of a flotation and regrind upgrade to the existing process plant

• Upgraded the site’s incoming high-voltage power system.

These upgrades were needed to continue the existing operation, commence mining at Roswell and to prepare to increase total mine production in the future. Completion of this program allows steady state operation at Roswell underground.

Upcoming Capital Program

In order to commence open cut mining at San Antonio, the Newell Highway will be relocated ~1km to the west of the existing highway corridor. This is a substantial body of work that has been through several design iterations over a number of years to receive full approval from Transport for NSW.

The ore from the open cut operations will be added to the underground mine production at Roswell to provide sufficient ore to expand the processing plant capacity with a throughput upgrade to ~1.5mtpa (from the existing ~1.1mtpa). Expansion will be facilitated by the installation of an additional mill, thickener, and electrowinning circuit.

The analysis of the tenders for the relocation of the Newell Highway are nearing completion with the intent to make a recommendation to award by the end of July and the next stage of engineering for the plant upgrade is commencing. Most of the work on these two projects will occur through calendar 2025, with open cut mining at San Antonio subsequently occurring in the first half of calendar 2026.

Changes in Capital Program

Prior to the submission of the Environmental Impact Statement for approval Alkane prepared a Life Of Mine (LOM) plan incorporating the Roswell and San Antonio resources (see ASX Announcement 3 June 2021).

The 2021 LOM plan considered the development of an underground mine at Roswell and open cut mining at Roswell and San Antonio. At a high level, these plans remain unchanged. Several minor changes to this plan have been made over the last three years in response to numerous factors that include the gold price, cost changes since the pandemic, approval requirements and grade control.

4/9

Alkane Resources Ltd – TGO 5Y Plan – 24 June 2024

==> picture [57 x 26] intentionally omitted <==

The most notable scope changes are the inclusion of a “wet” paste plant in the capital plan rather than hiring (to improve operational flexibility and cost) of a “dry” paste plant and the installation of a flotation and fine grind circuit in the processing plant (to improve gold recovery). The intervening period has seen significant cost increases across both mining and broader industry, this has particularly impacted the road construction estimate.

The changes described above, including cost escalation, are summarised in the table below, which shows the capital program to completion (by end of FY2026). Note that some capital work is already fully or partially complete.

A summary of the capital programs is shown below.

Area	2021 Estimate ($m)	Completion (~%)	Remaining Estimate ($m)
Environmental, Application Fees, Biodiversity Offsetting	7	50	3
Infrastructure, Relocations, Power, Water	17	25	12
Newell Highway Diversion	26	0	50
Kyalite Road Works	9	0	7
Geotechnical, Mobilisation, Establishment	3	25	2
Process Plant Upgrades (throughput expansion)	15	0	30
Residue Storage Facility (RSF2)	10	100	0
Process Plant Upgrades (recovery improvement)	0	50	20
Paste Plant	0	50	8
Total	87		132

Alkane currently has a debt facility of A$60m, of which $23m was drawn at the end of the March 2024 quarter. The forward capital program is expected to be funded by increasing the debt facility as well as utilising the cash generated at Tomingley. A final investment decision will be made in early 2025 on the next stage of the capital plan.

5/9

Alkane Resources Ltd – TGO 5Y Plan – 24 June 2024

==> picture [57 x 26] intentionally omitted <==

==> picture [466 x 685] intentionally omitted <==

6/9

Alkane Resources Ltd – TGO 5Y Plan – 24 June 2024

==> picture [57 x 26] intentionally omitted <==

TOMINGLEY GOLD OPERATION MINERAL RESOURCES (30 June 2023)

TOMINGLEY GOLD OPERATION MINERAL RESOURCES (30 June 2023)	TOMINGLEY GOLD OPERATION MINERAL RESOURCES (30 June 2023)	TOMINGLEY GOLD OPERATION MINERAL RESOURCES (30 June 2023)	TOMINGLEY GOLD OPERATION MINERAL RESOURCES (30 June 2023)	TOMINGLEY GOLD OPERATION MINERAL RESOURCES (30 June 2023)	TOMINGLEY GOLD OPERATION MINERAL RESOURCES (30 June 2023)	TOMINGLEY GOLD OPERATION MINERAL RESOURCES (30 June 2023)	TOMINGLEY GOLD OPERATION MINERAL RESOURCES (30 June 2023)	TOMINGLEY GOLD OPERATION MINERAL RESOURCES (30 June 2023)	TOMINGLEY GOLD OPERATION MINERAL RESOURCES (30 June 2023)
	MEASURED		INDICATED		INFERRED		TOTAL		Total Gold
DEPOSIT	Tonnage	Grade	Tonnage	Grade	Tonnage	Grade	Tonnage	Grade
	(Kt)	(g/t Au)	(Kt)	(g/t Au)	(Kt)	(g/t Au)	(Kt)	(g/t Au)	(Koz)
Open Pittable Resources (cut off 0.40g/t Au)
Caloma One	0	0.0	0	0.0	0	0.0	0	0.0	0
Sub Total	0	0.0	0	0.0	0	0.0	0	0.0	0
Underground Resources (cut off 1.3g/t Au)
Wyoming One	988	2.8	725	2.2	375	1.8	2,088	2.4	163
Wyoming Three	46	2.2	24	2.0	20	1.9	90	2.1	6
Caloma One	359	2.5	1113	2.0	328	2.0	1,800	2.1	123
Caloma Two	115	2.5	1066	2.3	360	2.2	1,541	2.3	115
Sub Total	1,508	2.7	2,928	2.2	1,083	2.0	5,519	2.3	407
TOTAL	1,508	2.7	2,928	3.8	1,083	3.4	5,519	2.3	407

	TOMINGLEY GOLD OPERATION ORE RESERVES (30 June 2023)	TOMINGLEY GOLD OPERATION ORE RESERVES (30 June 2023)	TOMINGLEY GOLD OPERATION ORE RESERVES (30 June 2023)	TOMINGLEY GOLD OPERATION ORE RESERVES (30 June 2023)	TOMINGLEY GOLD OPERATION ORE RESERVES (30 June 2023)	TOMINGLEY GOLD OPERATION ORE RESERVES (30 June 2023)
	PROVED		PROBABLE		TOTAL		Total Gold
DEPOSIT	Tonnage	Grade	Tonnage	Grade	Tonnage	Grade
	(Kt)	(g/t Au)	(Kt)	(g/t Au)	(Kt)	(g/t Au)	(Koz)
Open Pittable Reserves (cut off 0.40g/t Au)
Caloma	0	0.0	0	0.0	0	0.0	0
Stockpiles	329	1.0	0	0	329	1.0	11
Sub Total	329	1.0	0	0.0	329	1.0	11
Underground Reserves (cut off 1.3g/t Au)
Wyoming One	260	2.1	85	1.8	345	2.0	22
Caloma One	156	1.7	392	1.7	548	1.7	29
Caloma Two	26	1.5	252	1.8	278	1.8	16
Sub Total	442	1.9	729	1.7	1,171	1.8	68
TOTAL	771	1.5	729	1.7	1,500	1.6	79

7/9

Alkane Resources Ltd – TGO 5Y Plan – 24 June 2024

==> picture [57 x 26] intentionally omitted <==

TOMINGLEY GOLD EXTENSION PROJECT MINERAL RESOURCES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT MINERAL RESOURCES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT MINERAL RESOURCES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT MINERAL RESOURCES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT MINERAL RESOURCES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT MINERAL RESOURCES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT MINERAL RESOURCES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT MINERAL RESOURCES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT MINERAL RESOURCES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT MINERAL RESOURCES (as at 21 February 2024)
	MEASURED		INDICATED		INFERRED		TOTAL		Total Gold
DEPOSIT	Tonnage	Grade	Tonnage	Grade	Tonnage	Grade	Tonnage	Grade
	(Kt)	(g/t Au)	(Kt)	(g/t Au)	(Kt)	(g/t Au)	(Kt)	(g/t Au)	(Koz)
Total Resources (cut off 0.4g/t Au Roswell and 0.5g/t Au San Antonio)
Roswell			3900	1.7	0.0	0.0	3900	1.7	213
San Antonio			5,930	1.82	1,389	1.32	7,319	1.73	406
Sub Total	0	0.0	9,830	1.77	1,389	1.32	11,219	1.72	619
Underground Resources (cut off 1.3g/t Au)
McLeans			0	0.0	870	2.5	870	2.5	70
Roswell			3260	2.9	2290	2.5	5550	2.7	489
Sub Total			3,260	2.88	3,160	2.53	6,420	2.71	560
TOTAL			13,090	2.05	4,549	1.68	17,639	1.95	1,179

TOMINGLEY GOLD EXTENSION PROJECT ORE RESERVES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT ORE RESERVES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT ORE RESERVES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT ORE RESERVES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT ORE RESERVES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT ORE RESERVES (as at 21 February 2024)	TOMINGLEY GOLD EXTENSION PROJECT ORE RESERVES (as at 21 February 2024)
	PROVED		PROBABLE		TOTAL		Total Gold
DEPOSIT	Tonnage	Grade	Tonnage	Grade	Tonnage	Grade
	(Kt)	(g/t Au)	(Kt)	(g/t Au)	(Kt)	(g/t Au)	(Koz)
Open Pittable Reserves (cut off 0.40g/t Au)
Roswell	0	0.0	3,900	1.7	3,900	1.7	213
San Antonio	0	0.0	4,100	1.6	4,100	1.6	214
Sub Total	0		8,000	1.6	8,000	1.6	427
Underground Reserves (cut off 1.6g/t Au)
Roswell	0	0.0	3,209	2.3	3,209	2.3	237
San Antonio*	0	0.0	0	0.0	0	0.0	0
Sub Total	0	0.0	3,209	2.6	3,209	2.6	237
TOTAL	0	0.0	11,209	1.9	11,209	1.9	664

*San Antonio Underground Reserves not estimated to date

8/9

Alkane Resources Ltd – TGO 5Y Plan – 24 June 2024

==> picture [57 x 26] intentionally omitted <==

Competent Person

Unless otherwise advised above or in the Announcements referenced, the information in this report that relates to mineral resources and ore reserves is based on information compiled by Mr D I Chalmers, FAusIMM, FAIG, (director of the Company) who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Chalmers consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Previously Reported Information

The information in this report that references previously reported exploration results and mineral resources is extracted from the Company’s ASX market announcements released on the date noted in the body of the text where that reference appears (specifically the information in this report that relates to Mineral Resources at Tomingley/TGEP is extracted from the reports dated 13 September 2023 and 27 February 2024). The previous market announcements are available to view on the Company's website or on the ASX website (www.asx.com.au). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of mineral resources or ore reserves, that all material assumptions and technical parameters underpinning the estimates in the original market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

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.

This document has been authorised for release to the market by Nic Earner, Managing Director.

ABOUT ALKANE ‐ www.alkane.com.au ‐ ASX: ALK

Alkane Resources intends to grow to become one of Australia’s multi-mine gold and copper producers.

The Company’s current gold production is from the Tomingley Gold Operations in Central West New South Wales, which has been operating since 2014 and has the resources to continue to operate beyond 2030.

Alkane has an enviable exploration track record and controls several highly prospective gold and copper tenements. Its most advanced exploration projects are in the tenement area between Tomingley and Peak Hill, which has the potential to provide additional ore for Tomingley’s operations.

Alkane’s exploration success includes the landmark porphyry gold-copper mineralisation discovery at Boda in 2019. With drilling ongoing adjacent to the initial resource identified at Boda, Alkane is confident of further consolidating Central West New South Wales’ reputation as a significant gold and copper production region.

Alkane’s gold interests extend throughout Australia, with strategic investments in other gold exploration and aspiring mining companies, including ~6.7% of Calidus Resources (ASX: CAI).

==> picture [222 x 326] intentionally omitted <==

9/9

Alkane Resources Ltd – TGO 5Y Plan – 24 June 2024