Alkane Resources — Interim / Quarterly Report 2011

Apr 27, 2011

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B Mining exploration entity quarterly report

Name of entity

ALKANE RESOURCES LTD

ABN Quarter ended ("current quarter") 35 000 689 216 31 MARCH 2011

Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (mine rehabilitation & maintenance) Other (Commercial Ready Grant) Other Net operating cash flows	Current Quarter $A'000	Year to date (3 Months) $A'000
	6 (1,718) - - (341) - 42 - - (39) - (62)	6 (1,718) - - (341) - 42 - - (39) - (62)
	(2,112)	(2,112)
Cash flows related to investing activities 1.8 Payment for purchases of (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details of material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (46) - - - - (5)	- - (46) - - - - (5)
	(51)	(51)
	(2,163)	(2,163)

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other – cost of share issues Net Financing Cash Flows	(2,163)	(2,163)
	21,000 - - - - (1,078)	21,000 - - - - (1,078)
	19,922	19,922
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to Item 1.20 1.22 Cash at end of quarter	17,759 4,292 -	17,759 4,292 -
	22,051	22,051

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		272
		-
Explanation necessaryfor an understandingof the transactions Payments to companies associated with directors for: $ A,000 Directors fees/corporate consulting fees $88 Administration/accounting fees(paid to entity related to director of subsidiaries) $43 Geological consulting fees $141 Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows N/A 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhas an interest No expenditures on the Miranda/McDonoughs Lookout/Leinster Downs have been reported by Xstrata Nickel Australasia for the March quarter. Expenditure of $552,179 been reported on the Orange District Exploration Joint Venture by Newmont Australia Limited for the six months to 31 March 2011.	Explanation necessaryfor an understandingof the transactions
	Payments to companies associated with directors for: $ A,000 Directors fees/corporate consulting fees $88 Administration/accounting fees(paid to entity related to director of subsidiaries) $43 Geological consulting fees $141
	N/A
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhas an interest
	No expenditures on the Miranda/McDonoughs Lookout/Leinster Downs have been reported by Xstrata Nickel Australasia for the March quarter. Expenditure of $552,179 been reported on the Orange District Exploration Joint Venture by Newmont Australia Limited for the six months to 31 March 2011.

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

add notes as necessary for an understanding of the position

	3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A'000	Amount used $A'000
		-	-
		-	-

Estimated cash outlays for next quarter

• $A'000

• 4.1 Exploration and evaluation 2,000 4.2 Development - 4.3 Production - 4.4 Administration 325 TOTAL 2,325

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the statement of cash flows) to the related items in the accounts is as follows.

• 5.1 Cash on hand and at bank

• 5.2 Deposits at call

• 5.3 Bank overdraft

• 5.4 Other * term deposits of less than 12 months

• Total: cash at end of quarter (item 1.22)

	Current Quarter	Previous Quarter
	$A'000	$A'000
	450	104
	1,301	388
	-	-
	20,300	3,800
	22,051	4,292

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement Reference	Nature of Interest [note (2)]	Interest at Beginning of Quarter	Interest at End of Quarter
	EL 6700	Equity	100%	0%

See tenement schedule for details

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1Preferences+securities (description) 7.2 Changes during quarter (a) increases through issues (b) decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) increases through issues (b) decreases through returns of capital, buy- backs	269,028,158	269,028,158
	20,000,000	20,000,000	105c	105c
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) increases through issues (b) decreases through securities matured, converted
7.7Options (description and converstoin factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter			Exercise price	Expiry date
7.11Debentures (totals only)
7.12Unsecured notes (totals only)

Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does ~~/does not*~~ (delete one) give a true and fair view of the matters disclosed.

Sign here: [signed L A Colless] .................................. Date: 28 April 2011 ...................... ( ~~Director/~~ Company Secretary)

Print name: L A COLLESS ..........................................

Notes

• 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address the topic, the Australian standard on that topic (if any) must be complied with.

Appendix 5B Mining exploration entity quarterly report

ITEM 6.1 & 6.2 Schedule of mining tenements –as at 28 April 2011

Prospect	Tenement Interest Nature of interest
Peak Hill, NSW	GL 5884 (Act 1904) 100% Equity ML 6036 100% Equity ML 6042 100% Equity ML 6277 100% Equity ML 6310 100% Equity ML 6389 100% Equity ML 6406 100% Equity ML 1351 100% Equity ML 1364 100% Equity MLA 79 Orange 100% Equity (application) ML 1479 100% Equity EL6319 100% Equity
Dubbo, NSW	EL 5548 100% Equity through subsidiary EL 7631 100% Equity through subsidiary (application) MLA 183 Orange 100% Equity throughsubsidiary (application)
Orange-Molong, NSW Borenore	EL 6025 49% Equity through subsidiary Newmont 51% with the right to earn a further 24% EL 6091 49% Equity through subsidiary Newmont 51% withtheright to earnafurther 24%
Wellington, NSW	EL 6320 100% Equity ~~EL 6700~~ ~~100%~~ ~~Equity~~
Moorilda	EL 5760 49% Equity through subsidiary Newmont 51% with the right to earn a further 24% EL 6111 49% Equity through subsidiary Newmont 51% withtheright to earnafurther 24%
Tomingley Wyanga	EL 5675 100% Equity EL 5830 100% Equity EL 5942 100% Equity EL 6085 100% Equity EL7139 100% Equity
Cudal	EL7020 100% Equity
Bodangora	EL 4022 100% Equity
Calula	EL 7235 100% Equity EL7383 100% Equity
Diamond Creek	EL 7456 100% Equity EL7583 100% Equity
Nullagine, WA	EL 46/522 0% 60% retained interest in diamond potential EL 46/523 0% 60% retained interest in diamond potential EL 46/524 0% 60%retainedinterestindiamond potential
Miranda Well, WA	M36/303 25% Equity- XNA holds 75%
McDonough Lookout, WA	M36/329 & 330 25% Equity- XNA holds 75%
Leinster Downs, WA	M 36/622 25% Equity - XNA holds 75% P36/1601-1605 25% Equity- XNA holds 75%

XNA Xstrata Nickel Australia Newmont Newmont Australia Ltd