Alkane Resources — Interim / Quarterly Report 2015

Jul 26, 2015

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B Mining exploration entity quarterly report

Name of entity

ALKANE RESOURCES LTD

ALKANE RESOURCES LTD
ABN 35 000 689 216	Quarter ended("currentquarter")
	30 June 2015
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 – mineral royalties Other (provide details if material) Net operating cash flows	Current Quarter $A'000	Year to date (12 Months) $A'000
	21,432 (3,268) (5,935) (16,004) (1,775) - 129 (59) - (514) 16	101,941 (14,485) (13,060) (65,212) (5,889) - 526 (145) - (2,825) 211
	(5,978)	1,062
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 - Payments for security deposits Other - Proceeds from refund of security deposits Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (51) - 2,774 - - - - 2,010 -	- - (5,043) - 4,001 - - - (4,010) 3,160 -
	4,733	(1,892)
	(1,245)	(830)

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 (hire purchase) 1.17 Repayment of borrowings (hire purchase) 1.18 Dividends paid 1.19 Other(provide details if material) Net Financing Cash Flows	(1,245)	(830)
	- - - (22) - -	(3) - 165 (52) - -
	(22)	110
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	(1,267) 16,116 -	(720) 15,569 -
	14,849	14,849

Payments to directors of the entity, associates of the directors, 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
		$294
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Payments to directors and/or companies associated with directors for: Directors fees/corporate consulting fees Executive director salary and superannuation Administration/accounting and company secretarial fees IT consultingfees and services	$A’000 $78 $99 $79 $38

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

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 expenditure has been reported on the Miranda/McDonoughs Lookout joint venture for the quarter ended 30 June 2015.

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 (hire purchase) 3.2 Credit standby arrangements	Amount available $A'000	Amount used $A'000
	165	165
	-	-
Estimated cash outflows for next quarter 4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration TOTAL		$A'000
		2,000
		3,900
		17,000
		1,600
		24,500

The Tomingley Gold Operation commenced production in February 2014 resulting in the generation of cash inflows from the sale of gold. As at 30 June 2015, the Group had bullion on hand of 3,169 ounces at fair value of $4.8 million (31 March 2015: 3,553 ounces at fair value of $5.5 million) and nil investments in listed companies available for sale (31 March 2015: $3.2 million).

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated 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 investment term deposits of less than 12 months Total: cash at end of quarter*(item 1.22)	Current Quarter $A'000	Previous Quarter $A'000
	874	837
	13,975	15,279
	-	-
	-	-
	14,849	16,116

Changes in interests in mining tenements

Tenement Reference and Location	Nature of Interest [note (2)]	Interest at Beginning of Quarter	Interest at End of Quarter
M 36/303, Miranda Well, WA M 36/329 & 330, McDonough Lookout, WA	Equity, diluting Equity, diluting	20% 20%	19.4% 19.4%
	n

See tenement schedule appended for details of tenement holdings at end of quarter

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	414,218,670	414,218,670
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) increases through issues (b) decreases through securities matured, converted
7.7Options 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter Unlisted options			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] ...................................................... Date: 27 July 2015........................ ( ~~Director/~~ Company Secretary) Print name: Karen E V BROWN ..................................

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 and petroleum 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 or petroleum 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 a 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 30 June 2015

Project/Location	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
	ML 1479	100%	Equity
	EL 6319	100%	Equity
Dubbo, NSW	EL 5548	100%	Equity through subsidiary
	EL 7631	100%	Equity through subsidiary
	EL 8193	100%	Equity through subsidiary
	MLA 486	100	Equitythrough subsidiary (application)
Wellington,NSW	EL 6320	100%	Equity
Tomingley, NSW	EL 5675	100%	Equity
	EL 5830	100%	Equity
	EL 5942	100%	Equity
	EL 6085	100%	Equity
	ML 1684	100%	Equitythrough subsidiary
Cudal, NSW	EL 7020	100%	Equity
	EL 8340	100%	Equity
Bodangora, NSW	EL 4022	100%	Equity
	EL 6209	0%	Right to acquire 100%
Finns Crossing,NSW	EL 8261	100%	Equity
Rockley, NSW	EL 8170	100%	Equity
	EL 8194	100%	Equity
Elsienora, NSW	EL 6082	0%	Right to earn up to 80%
	EL 6767	0%	Right to earn upto 80%
Nullagine, WA	EL 46/522-I	0%	60% retained interest in diamond potential
	EL 46/523-I	0%	60% retained interest in diamond potential
	EL 46/524	0%	60% retained interest in diamondpotential
Miranda Well,WA	M 36/303	19.4%	Equity- XNA holds 79.6%
McDonough Lookout,WA	M 36/329& 330	19.4%	Equity- XNA holds 79.6%

XNA Xstrata Nickel Australia (pending completion of divestment to third party)