Alkane Resources — Investor Presentation 2008

Nov 20, 2008

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R ESOURCES L TD
AB N 3 5 0 0 0 6 8 9 2 1 6
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21 November 2008

Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000

Dear Sir,

PRESENTATION

Attached is a copy of a presentation to the 4[th] International Rare Earth Conference being held in Hong Kong.

A copy of this presentation will also be available on the Company’s website www.alkane.com.au.

Yours faithfully,

for ALKANE RESOURCES LTD

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D I Chalmers Managing Director

Registered Office: 129 Edward Street Perth WA 6000 Telephone: 61 8 9227 5677 Facsimile: 61 8 9227 8178 PO Box 8178 Perth Business Centre Western Australia 6849 www.alkane.com.au mail@alkane.com.au

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ALKANE RESOURCES LTD
ABN 35 000 689 216
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Dubbo Zirconia Project
Australia
A new source of supply for the rare earths sector
4 [th ] International Rare Earth Conference
Hong Kong November 2008
Roskill Information Services Ltd Metal Events Ltd
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ALKANE Public company listed on the ASX since 1969 2,700 mostly Australian shareholders Multi commodity explorer and miner, focussed in the Central West of New South Wales, Australia

Gold production from Peak Hill mine 1996 - 2005 New gold (+1Moz) development planned at Tomingley

Major gold discovery at McPhillamys (+2.5Moz)

Board John Dunlop Chairman Ian Chalmers Managing Director Tony Lethlean Non-executive director Ian Gandel Non-executive director Ian Cornelius Non-executive director The Board at Dubbo Project Pilot Plant at ANSTO

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Central West NSW Alkane Projects

Significant Infrastructure State grid power National grid gas DZP Water

Population base of 150,000 within the 120km diameter area

DUBBO ZIRCONIA PROJECT Location and Infrastructure Dubbo region pop 80,000 Major mixed agriculture Transport hub Substantial light industry

Location and Infrastructure

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DUBBO ZIRCONIA PROJECT
Geology
0 200
metres
Jurassic aged trachyte intrusive
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DUBBO ZIRCONIA PROJECT

RESOURCES

Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr02, 0.04%HfO2, 0.46% Nb2O5 , 0.03% Ta2O5 , 0.14% Y2O3 , 0.75% REO and 0.014% U3O8 Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes Major world resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements Although the ore is not classified as a radioactive deposit, it contains 23 million lbs (10,200t) of uranium Production of uranium is currently prohibited in NSW

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DUBBO ZIRCONIA PROJECT
ORE MINERALOGY
eudialyte ZrSiO4 ± Ca, Y,
Zirconium armstrongite REE, H2O +?U < 2μm - 50μm
yttrium silicates YSiO4 ± REE, Be,
Yttrium and with Zr Fe, As, Nb < 50μm
Niobium/ NaNbO3 + Ta ? Th
Tantalum natroniobite also NbFeSiO4 < 30μm
calcian
Ca(REE)(CO3)F
basnaesite
Rare Earths < 100μm
rare ancylite Sr(REE)(CO3)H2O
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DUBBO ZIRCONIA PROJECT
ORE MINERALOGY
BSE image x 2300: REE-
rich Zr-Si hosted within Zr-
silicate
Zr-silicate
ANSTO March 2007
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DUBBO ZIRCONIA PROJECT
ORE MINERALOGY
BSE image x 600:
Nb mineral in Fe-Mn
carbonate
ANSTO March 2007 Natroniobite
Zr-silicate
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DUBBO ZIRCONIA PROJECT
ORE MINERALOGY
BSE image x 250:
Altered Ca-bastnaesite
ANSTO March 2007 Ca bastnaesite
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DUBBO ZIRCONIA PROJECT

Early Metallurgical Test Work

• Preliminary test work on HCl, HF, NaOH leaching, and H2SO4 roasting and leaching

• Preliminary flotation to assess potential for pre-concentration

• Scan of various physical separation processes

• Definitive flotation test work for pre-concentration

• Only H2SO4 leach gave potentially viable process Full feasibility commenced 2002

LKANE

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DUBBO ZIRCONIA PROJECT
PROCESS FLOW SHEET - 2008
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DUBBO ZIRCONIA PROJECT

Current Program

AusIndustry Commercial Ready Grant of A$3.29M in April 2006 on dollar for dollar basis to complete process optimisations, and construct and operate the Demonstration Pilot Plant (DPP).

Laboratory program to optimise flow sheet commenced at ANSTO Lucas Heights (Australian Nuclear Science and Technology Organisation) July 2006, with Demonstration Pilot Plant commissioned March 2008

Substantial product samples from DPP to be distributed late 2008- early 2009. Samples in 50 to 100kg lots

Market update completed late 2007 – strong growth predicted in most products

Revise and update the 2002 feasibility study by mid to late 2009. DFS managed by Perth based consultants TZ Minerals International Pty Ltd.

DUBBO ZIRCONIA PROJECT

Feasibility Study Team

DFS study manager: Steve Gilman TZ Minerals International Pty Ltd Gavin Diener; Machiel Keegel; Dave McCoy - Engineering TZMI Marketing: Martin Lynch TZMI Philip Murphy TZMI Special Marketing Consultants: Dudley Kingsnorth IMCOA - REE

Alister MacDonald TCMS - Zirconium + REE ANSTO Minerals: Bob Ring, Doug Collier, Karin Soldenoff, Des Levins DPP Operations: Adrian Manis, Peter Fleming, Prakash Rajalingam + the crew DPP Ext Engineering: Worley Parsons

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Australian Nuclear Science and Technology Organisation

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ANSTO is located at Lucas Heights about 30km south of the Sydney CBD and is one of Australia’s premier research facilities. For 50 years ANSTO has undertaken research in nuclear science and technology with applications which assist in solving problems in such diverse areas as environment, climate change, human health, agriculture, manufacturing, mining, construction, minerals, structural integrity, and nuclear nuclear proliferation. ANSTO has several internal divisions and an associated Technology Park. These include Minerals, Environment, Radiopharmaceutical, Materials Engineering (ceramics, synroc), Bragg Institute (neutron, x-rays). Silex operate in the Technology Park and have a world first laser uranium enrichment process.

Australian Nuclear Science and Technology Organisation

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DUBBO ZIRCONIA PROJECT
October 2006
Bulk sample for
Demonstration pilot plant
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DUBBO ZIRCONIA PROJECT
Demonstration Pilot Plant - Shed
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DUBBO ZIRCONIA PROJECT
Demonstration Pilot Plant – Shed Internal
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DUBBO ZIRCONIA PROJECT

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Demonstration Pilot Plant - Kiln
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DUBBO ZIRCONIA PROJECT
Demonstration Pilot Plant – Primary Filter
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DUBBO ZIRCONIA PROJECT
Demonstration Pilot Plant – Solvent Extraction Circuit
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DUBBO ZIRCONIA PROJECT
Demonstration Pilot Plant – Zirconium Recovery
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DUBBO ZIRCONIA PROJECT
Zircon industry
CURRENT Other
ZIRCON Foundry 2%
14%
USES Zirconia & Ceramics
50%
Zr Chemicals
12%
Global output TV Glass
8%
1,400,000 tpa
Refractory
14%
Source: Iluka / TZMI
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DUBBO ZIRCONIA PROJECT

Zircon consumption for zirconia – zirconium chemical production

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Demand for zirconia
and Zr chemicals to
grow zircon
consumption
from 160kpta to
+300ktpa by 2015
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DUBBO ZIRCONIA PROJECT
ZIRCON / BADDELEYITE ELECTRIC ARC FURNACE
Zirconium Chemicals
Industry Structure and CHEMICAL PROCESSING
Market Entry Points
“INTERMEDIATES” ZBS ZOC ZIRCONIAFUSED
UPGRADING/CONVERSION UPGRADING/CONVERSION
“END USE” Upgrading
2007 ~ 160,000t zircon ZBC ZOH ZBS ZOC ZBC AcetateZr ZirconiaDoped
converts to End Uses
96,000t of zirconia (equivalent)products and 13,000 Zr metal ������ CatalystsPaint driersAnti-perspirantsPrinting inks (as AZC)CeramicsElectronics ��� CatalystsMixed zirconiasPigment coating �� Pigment coatingLeather tanning ���� Pigment coatingsDrilling mudsFireproofing textilesRubber ������� CatalystsPaint driersAnti-perspirantsPrinting inks (as AZC)CeramicsElectronicsZirconium soaps �� CatalystsFireproofing textiles ���� CatalystsStructural ceramicsBio-ceramicsElectronics
Products range from US$5 to +US$20/kg (ZrO2 units) depending upon quality and use
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DUBBO ZIRCONIA PROJECT Current Zirconia Zirconium chemical Uses 2007 Consumption 96,000 tonnes (ZrO2 units) 2010 Estimated 126,000 tonnes with industry growth rate of 4.5%pa High growth areas: Advanced ceramics and catalysts 13.0%pa Ceramic pigments 8.0%pa Source: TZ Minerals International

DUBBO ZIRCONIA PROJECT

Zirconium oxychloride (ZOC) price – sets base price for Zr chemicals Chinese ZOC price trends US$/tonne Mid 2008 $1550/t = $5000/t ZrO2 units 2009 Estimated to be US$6,000/t Source: Technical Ceramic Marketing Services

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DUBBO ZIRCONIA PROJECT
Schematic of Niobium Industry Structure
Metallurgical
� Structural steels
� resistant steelsStainless and heat
Pyrochlore FeNb � Superalloys
� magnetsSuper conducting
Columbite
Tantalite Nb 2O 5 Oxides
� Class
� Ceramics
AZL Nb
Concentrate
Nb Raw Materials Intermediate Products Applications
Source: TZ Minerals International
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DUBBO ZIRCONIA PROJECT
Niobium Demand
Niobium 2007 (Ferro-niobium units) consumption ~ 63,000t – 90% Brazil
Estimate for 2012 ~ 100,000t
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DUBBO ZIRCONIA PROJECT
Niobium Price – As ferro-niobium units
Ferro-niobium price spiralled to US$60/kg in March 07
and is currently around US$40 - 50/kg
Long term expected to be in US$25 - $35/kg
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DUBBO ZIRCONIA	DUBBO ZIRCONIA	PROJECT
Yttrium -	Rare Earth Distribution in Ore
	ppm	Wt %
La2O3	1799	19.5%
CeO3	3393	36.7%
Pr6O11	373	4.0%
Nd2O3	1302	14.1%
Sm2O3	203	2.5%
Eu2O3	6	0.1%
Gd2O3	198	2.1%
Tb4O7	31	0.3%
Dy2O3	189	2.0%
Ho2O3	39	0.4%
Er2O3	107	1.2%
Tm2O3	15	0.2%
Yb2O3	92	1.0%
Lu2O3	13	0.1%
Y2O3	1460	15.8%
Total	9249	100%

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DUBBO ZIRCONIA PROJECT

Yttrium - Rare Earth Distribution in Ore Minerals

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Source: IMCOA
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DUBBO ZIRCONIA PROJECT

Yttrium - Rare Earth Distribution in Ore Minerals

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Source: IMCOA
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DUBBO ZIRCONIA PROJECT

Probable Outputs

Base case models of 200,000 to 500,000 tonnes per year of ore processed Product 200ktpa 500ktpa ZBS, ZOH, ZC0 9,000tpa (3ktpa ZrO2) 22,500tpa (7.5ktpa ZrO2) Nb-Ta concentrate 1,000tpa (0.7ktpa Nb2O5)2,500tpa (1.75ktpa Nb2O5) LREE concentrate 990tpa (REOs) 2,475tpa (REOs) YREE concentrate 301tpa (REOs) 753tpa (REOs)

� ZBS = zirconium basic sulphate; ZOH = zirconium hudroxide; ZCO = zirconium carbonate � Nb-Ta concentrate = ~80% Nb2O5; 1.5% Ta2O5 calcined basis

DUBBO ZIRCONIA PROJECT

Yttrium - Rare Earth Individual Production (assumed 70% recovery)

DUBBO ZIRCONIA PROJECT Yttrium - Rare Earth Individual Production (assumed 70% recovery)	DUBBO ZIRCONIA PROJECT Yttrium - Rare Earth Individual Production (assumed 70% recovery)
	200kpta 500kpta La2O3 252 630 CeO3 475 1188 Pr6O11 52 131 Nd2O3 182 456 Sm 2 O 3 28 71___ Total LREE 990tpa 2475tpa Eu2O3 1 2 Gd2O3 28 69 Tb4O7 4 11 Dy2O3 26 66 Ho2O3 5 14 Er2O3 15 37 Tm2O3 2 5 Yb2O3 13 32 Lu2O3 2 5 Y 2 O 3 204 511___ Total YHREE 301tpa 753tpa Total YREE 1291tpa 3228tpa

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DUBBO ZIRCONIA PROJECT
Geology and 20 Year Pit
0 200
metres
Open pit life at 200kpta ore processed = +400 years
Open pit life at 500kpta ore processed = +160 years
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Dubbo Zirconia Project
Toongi rail siding and process plant site
Deposit
Plant site
Railway
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DUBBO ZIRCONIA PROJECT

Why is this project different

Majority of “downstream” zirconium products are derived from zircon, whose output is governed by ilmenite/rutile from mineral sands mining operations.

Niobium (and tantalum) production dominated by one major company in one country. Nb by CBMM in Brazil (and Ta by Talison in Australia).

Production costs are spread across the four metal outputs – zirconium (hafnium), niobium (tantalum), light rare earths and yttrium-heavy rare earths.

Project located in region with very favourable infrastructure and legislative framework, both at a State and Federal level.

The DZP provides an alternative source for a number of strategically important metals, and is capable of producing for hundreds of years from one ore body.

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ALKANE RESOURCES LTD
ABN 35 000 689 216
Dubbo Zirconia Project
Moving Forward
A world class project
www.alkane.com.au
Zirconium sulphate crystals
Disclaimer:
This presentation 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 of implied by these forward looking statements depending on a variety of factors.
Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.
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Competent Person:
Mr D I Chalmers, FAusIMM, FAIG, (director of the Company) 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 Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves. Ian Chalmers consents to the inclusion in the presentation of the matters based on his information in the
form and context in which it appears.
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