Alkane Resources — Investor Presentation 2008

Jul 7, 2008

Attention ASX Company Announcements Platform Lodgement of Open Briefing[®]

==> picture [132 x 88] intentionally omitted <==

==> picture [119 x 110] intentionally omitted <==

Alkane Resources Limited 129 Edward Street Perth, Western Australia, 6000

Date of lodgement: 08-Jul-2008

Title: Open Briefing[®] . Alkane. DZP and Gold Projects Update

Record of interview:

corporatefile.com.au

Alkane Resources Ltd (ASX code – ALK) has been operating the Demonstration Pilot Plant (DPP) for its 100%-owned Dubbo Zirconia Project (DZP) since April 2008. The plant has operated on several short campaigns of a few days to test the mechanical and process integrity of the flow sheet. What are your summary findings from the DPP operation so far?

MD Ian Chalmers

The key finding has been confirming the robustness of both the process flow sheet and the mechanical components of the plant. That’s been very pleasing because there has always been uncertainty about the impact that sulphuric acid leach at temperature would have on the rotary kiln and associated leaching gear at the front end of the plant. The rest of the mechanical components of the plant have worked very well even though there have been some small glitches, as you’d expect.

Overall, we have confirmed the process flow sheet as it essentially was back in 2002 and that’s a good result.

corporatefile.com.au

What advances have you made in terms of evaluating the potential for a commercial scale plant? What remain the major obstacles?

MD Ian Chalmers

At this stage, there’s still a lot to do. Obviously one of the key things to do is run the plant on a more continuous basis over a number of months and we need to produce several tonnes of sample products to send to end users. However,

1

the fact we have confirmed the process reduces the concern about scaling the plant into a commercial size operation.

The remaining obstacles to developing a successful commercial project are mainly market related, but we also need to update all the costs. We need to get the products out to potential users, get their feedback and then establish off take agreements and pricing. Running the DPP will also give us the data needed to update the operating and capital costs. So, there are still hurdles in advancing to a commercial project, but we remain optimistic based on the operation of the DPP.

corporatefile.com.au

You have previously stated that a commercial project could process up to 400,000 tonnes of ore per annum given the world demand for the products. Given your updated knowledge on the process flow sheet and world markets for your products, what are your expectations on the scale of a commercial project? How easily can you scale the process flow sheet into a commercial operation?

MD Ian Chalmers

Our base case model remains at 200,000 tonnes per annum of ore throughput with an upside case of 400,000 tonnes per annum. At the base case rate, the open pit has a life in excess of 400 years. The reason we are sticking to the base case is market related rather than any technical constraint. We have assessed the amount of product we could realistically place to customers without upsetting the market dynamics. We wanted to limit the volume of our main product, zirconium chemicals, to about 7-8% of current world consumption because, as a new player, it will be challenging to establish in these industries.

Over the last two years, we’ve seen some fairly dramatic changes in the niobium industry and some amazing changes in the rare earth industry, and we are now seeing some flow-on into the zirconium business. That encourages us to consider that either a 300,000 tonnes or 400,000 tonnes per annum plant is far more workable than we thought five years ago. Given the size of the resource and our technical knowledge, we don’t see any issues about scaling the project - we could scale up to one million tonnes a year if we could sell the output without destabilising the markets.

corporatefile.com.au

Based on the operation of the DPP and your previous knowledge, what are the likely, or possible, products you might produce from a commercial scale plant such as zirconium chemicals, zirconia, niobium-tantalum concentrate and yttrium-rare earth concentrate? Can you outline the status of current world markets for these products?

MD Ian Chalmers

We plan to produce three different zirconium products; a zirconium basic sulphate, a zirconium hydroxide and a zirconium carbonate. These all have varying uses in a very diverse industry, which consumes about 100,000 tonnes a year of zirconia equivalent products. The market deals in zirconia equivalent as a standard measure for these chemical products. We are also looking at producing different grades of zirconia, but that’s a little less advanced.

2

We have produced a good quality niobium-tantalum concentrate and we think we can find a ready market for it. In the past, we’ve looked at separating the niobium and tantalum, but it doesn’t appear a worthwhile option at this stage. The niobium market is about 85-95,000 tonnes a year and about 90% goes into the steel industry. Demand for niobium is taking off in parallel with world steel consumption.

The flow sheet we’re developing shows that we’ll likely produce a yttrium heavy rare earth product and a light rare earth product. They’ll have quite different markets. The rare earth industry is rapidly expanding, with around 122,500 tonnes a year of rare earth products consumed in 2007 and around 125-130,000 tonnes predicted for this year. The level of output we are anticipating at the DZP will have minimal impact on that market, but would be very important non-Chinese production.

corporatefile.com.au

What about recent prices?

MD Ian Chalmers

The zirconium basic sulphate sells for around US$4.50/kg and the value-added zirconium products like the hydroxide and the carbonate sell for up to $6-7/kg. The chemical grade zirconias sell for around US$10/kg and electronic grade zirconias sell for around US$20/kg. These prices have started to appreciate in recent years.

Niobium pricing is based on ferro-niobium, which is mainly used in the steel industry. The base case price was probably around $US16-18/kg about three years ago and it hit US$65/kg last year and it is around US$55/kg today. Our base case model uses a long term price of US$25-35/kg and we’ll be very happy if today’s spot price is sustained.

It’s hard to give a basic price for rare earths because it all depends on the content of each rare earth in the product, but we think that our combined heavy and light rare earth product will probably sell at around US$15/kg.

Our feasibility study in 2002 tabled revenues in a range of $35-50 million per year from the base case of 200,000 tonnes per annum throughput. With the current market dynamics, about 30% of the revenue will come from zirconium products, 40-45% from niobium and around 30% from yttrium-rare earth concentrate. Annual revenue would be about US$50-55 million at today’s prices and obviously would double at 400,000 tonnes of ore per annum.

corporatefile.com.au

You plan to send sample packs to potential customers to assess the demand for your products. Can you give more detail? What is the timetable?

MD Ian Chalmers

In 2002 when we did the feasibility study we took packets of 50-100 grams of the zirconium and niobium products around the world. These were produced from the mini pilot plant. The feedback we got was very good, but nearly everyone asked for sample packs of at least 50kg so that they could trial them in their production process. One of the determinants of the size of the DPP was

3

the fact that we had to produce sample packs of that size. We’ll be shipping the samples around the world including to USA, Japan and Europe, and should be starting to accumulate enough volume by September, with shipping to commence soon after.

corporatefile.com.au

What variations in the process flow sheet do you intend to test? What is the remaining operating program for the DPP?

MD Ian Chalmers

As I’ve said, the process flow sheet looks like it is very much intact. We’ll trial a few subtle things to make sure we’re not missing opportunities to improve recoveries and minimise reagent consumption. We are very comfortable with the zirconium and niobium parts of the circuit and think we have that right. The big step is proving the recovery of the yttrium and rare earths and we are about to trial options to recover these. That is a very important step because yttrium and rare earths markets have improved so much in recent years that they have become an important potential revenue stream that we’ve never seriously considered before.

At this stage, the idea is to run three, one month campaigns operating 24 hours a day and seven days a week before the end of the year. We will further assess the flow sheet and make enough product samples for the end users. There may be some modifications to the plant in the weeks between campaigns.

corporatefile.com.au

Alkane has recorded impressive drilling results from its recently completed resource definition program at Caloma within its Tomingley Gold Project (TGP). When do you expect to announce the resource? What are your revised expectations?

MD Ian Chalmers

The resource compilation is scheduled for September and that was delayed because we kept drilling as Caloma has grown in size since we started the program last October. We decided to stop the drilling so we could calculate a resource and get the project into the development stage, even though we could have kept on expanding the resource potential.

Caloma has been drilled in enough detail to give us a measured and indicated resource. That resource will be incorporated into the feasibility study to make sure the TGP works. Once we’ve progressed the feasibility study and the development schedule, we will probably return to Caloma to do more drilling with the idea that we will extend the resource before we finalise mine design.

My expectations have not changed and I still believe the target at Caloma is around 200,000 ounces. That’s within the central or core resource area. There is mineralisation to the north and south of this area that has not been drilled in any detail to date. We’ve primarily drilled Caloma to an open pitable resource depth of 150 metres, but we do expect to expand it laterally and at depth over time as we have intersections deeper than the 150 metres.

4

corporatefile.com.au

To what extent will these additional resources enhance the project? What are your plans to explore for additional resources either at Caloma or more broadly within the TGP?

MD Ian Chalmers

The two Wyoming deposits have open pit grades of around 2.2g/t, while Caloma looks as though it could be +3g/t and it will provide at least the first two years of ore feed into the plant. It is a shallow deposit sitting below only around 5 metres of clay cover. There are really quite spectacular grades from the top of the ore body and that should deliver very good cash flows from the beginning of the project, which is a critical time and will allow us to pay back capital early on. Caloma should have a pretty dramatic impact on the overall economics of the TGP.

We think there is a lot of scope to extend Caloma north and south and down dip. The discovery also confirmed the potential of the region. We thought we understood the geology pretty well, but we’ve learnt a lot from Caloma and we will apply that knowledge to finding other deposits in the region. We own around 100 kilometres in strike extent of the rock sequence that hosts these deposits. It stretches from near Parkes in the south up to nearly Narromine in the north. We think over time that we will find more Caloma/Wyoming deposits and the short term aim will be to look between Caloma and Peak Hill, 12 kilometres away, where probably only 20 holes have been drilled.

Discoveries like Caloma have demonstrated that, if you don’t know the geology, you can easily pass over them. We’re much better placed to make more discoveries and we already have some leads to follow up, including Smiths which is 4-5 kilometres south of Tomingley and has the same rock sequence. Some reconnaissance holes were drilled there a couple of years ago and intersected gold mineralisation, but we now need to have another look. There are a lot of targets in the immediate vicinity as well as the broader regional targets.

Once the TGP gets into production we think the potential to extend the project life is high.

corporatefile.com.au

What is the status of exploration at McPhillamys within the Moorilda Project near Orange, NSW (managed by Newmont Australia, but operated by Alkane)? What is Newmont’s future program and expenditure commitment for the purpose of further defining and extending McPhillamys?

MD Ian Chalmers

We’ve just started drilling again. The diamond rig has been there around three weeks and the RC rig should arrive this week after being delayed for further modifications. The program in the short term is to scope the potential for mineralisation in the main McPhillamys area and to the north and south. That will give us an indication of the full strike length of mineralisation. The recent Induced Polarisation survey extended the sulphide chargeability feature of McPhillamys 600 metres to the south (total length now 1.8km) and we believe there is scope to extend it to the north.

5

At the end of the program, we’ll have a good idea of the continuity of the mineralisation along strike and down dip. Towards the end of the year, we hope to have a scoping model. We won’t have a JORC resource, but it will be valuable for our internal assessment of the project and the potential economics.

At the end of the year, Newmont should have completed its obligation of spending $5 million within five years for 51% of the project. They will then decide if they want to increase to 75% and that requires them to fund all expenditure to the completion of a bankable feasibility study.

corporatefile.com.au

Alkane has steadily advanced its main projects to be real possibilities of getting into production. What could Alkane look like in the longer term?

MD Ian Chalmers

Our strategy since the establishment of the Peak Hill operation in 1996 was to build a resource base in the Central West of NSW and then develop several projects that would provide cash flow and profits. We expect the TGP to be in production within 1.5-2 years and we think there is a very good chance that the DZP will come on around a year after that. McPhillamys is a little harder to gauge because its timing depends on Newmont, but we potentially could see it being developed in about 3-4 years. We also have the Galwadgere copper deposit where the exploration potential to expand it is fantastic. We want to get back there as soon as possible, but the other projects are so good that they have priority.

In four to five years, Alkane might have three to four operating mines in close proximity. These are all within about a 150 kilometre diameter area and that has management and cost benefits. We are steadily building and strengthening the Company on a multi-commodity approach, but within a tight regional focus.

corporatefile.com.au

Thank you Ian.

For further information on Alkane please call Ian Chalmers on (08) 9328 9411 or email ichalmers@alkane.com.au

To read other Open Briefings, or to receive future Open Briefings by email, please visit www.corporatefile.com.au

DISCLAIMER: Corporate File Pty Ltd has taken reasonable care in publishing the information contained in this Open Briefing®. It is information given in a summary form and does not purport to be complete. The information contained is not intended to be used as the basis for making any investment decision and you are solely responsible for any use you choose to make of the information. We strongly advise that you seek independent professional advice before making any investment decisions. Corporate File Pty Ltd is not responsible for any consequences of the use you make of the information, including any loss or damage you or a third party might suffer as a result of that use.

6