Alkane Resources — Interim / Quarterly Report 2012

Jul 30, 2012

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B Mining exploration entity quarterly report

Name of entity

ALKANE RESOURCES LTD

ABN 35 000 689 216	Quarter ended("currentquarter")	Quarter ended("currentquarter")
	30 June 2012
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 (see note 6) (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 (R & D tax offset received) Net operating cash flows	Current Quarter $A'000	Year to date (6 Months) $A'000
	10 (2,710) (2,017) - (491) - 494 - - (35) -	14 (5,869) (3,098) - (956) - 608 - - (68) 709
	(4,749)	(8,660)
Cash flows related to investing activities 1.8 Payment for purchases of (a) prospects (b) equity investments (c) other fixed assets (see note 6) 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) changes in security deposits Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (1,631) - - - - - 16	- - (3,021) - - - - - 22
	(1,615)	(2,999)
	(6,364)	(11,659)

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	(6,364)	(11,659)
	43,324 - - - - (2,466)	106,924 - - - - (4,904)
	40,858	102,020
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	34,494 65,672 -	90,361 9,805 -
	100,166	100,166

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
		239
		-
	Explanation necessaryfor an understandingof the transactions
	Payments to companies associated with directors for: $ A,000 Directors fees/corporate consulting fees $74 Administration/accounting fees(paid to entity related to director of subsidiaries) $59 Executive director salary and superannuation $ 106

Non-cash financing and investing activities

2.1 2.2	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
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhas an interest
	Expenditure of $145,360 has been reported on the Miranda/McDonoughs Lookout/Leinster Downs joint venture by Xstrata Nickel Australasia for the six months to 30 June 2012. Expenditure of $52,590 has been reported on the Orange District Exploration Joint Venture by Newmont Australia Limited for the three months to 30 June 2012.

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

add notes as necessary for an understanding of the position

	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 outflows for next quarter

• $A'000

• 4.1 Exploration and evaluation 3,000 4.2 Development 2,000 4.3 Production - 4.4 Administration 500 TOTAL 5,500

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 $A'000	Previous Quarter $A'000
		709	19,328
		11,207	8,094
		-	-
		88,250	38,250
		100,166	65,672

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 6025 EL 6091 EL 7139 EL 7583 M36/303 M36/329-330 E36/622 P36/1601-1605	Equity Equity Equity Equity Equity – diluting Equity – diluting Equity – diluting Equity- diluting	49% 49% 100% 100% 21% 21% 21% 21%	0% 0% 0% 0% 20% 20% 20% 20%

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	372,231,500	372,231,500
	56,903,342 6,000,000	56,903,342 6,000,000	110 107	110 107
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) increases through issues (b) decreases through securities matured, converted
7.7Options Unlisted options 7.8 Issued during quarter Unlisted options 7.9 Exercised during quarter 7.10 Expired during quarter	4,000,000	-	Exercise price 150	Expiry date 15/05/2013
	4,000,000	-	150	15/05/2013
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: 31 July 2012 ...................... ( ~~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.

• 6 Balance brought forward from 31 March 2012 have been adjusted following re-allocation of certain early works/capital items expenditure to acquisition of fixed assets (e.g. progress payments on acquisition of ball mill).

Appendix 5B Mining exploration entity quarterly report

ITEM 6.1 & 6.2 Schedule of mining tenements –as at 31 July 2012

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(
	MLA 183 Orange	100%	Equity throughsubsidiary (application)
Orange-Molong	EL 7878(to replace	49%	Equity through subsidiary
	EL6025 and 6091)		Newmont 51% withtheright to earnafurther 24%
Wellington, NSW	EL 6320	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	EL 5675	100%	Equity
	EL 5830	100%	Equity
	EL 5942	100%	Equity
	EL 6085	100%	Equity
	MLA399	100%	Equity throughsubsidiary (application)
Cudal	EL7020	100%	Equity
Bodangora	EL 4022	100%	Equity
Calula	EL 7235	100%	Equity
	EL7383	100%	Equity
Mt Conqueror	ELA 4417	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	20%	Equity- XNA holds 80%
McDonough Lookout, WA	M36/329 & 330	20%	Equity- XNA holds 80%
Leinster Downs, WA	M 36/622	20%	Equity - XNA holds 80%
	P36/1601-1605	20%	Equity- XNA holds 80%

XNA Xstrata Nickel Australia Newmont Newmont Australia Ltd