Alkane Resources — Investor Presentation 2010

Nov 22, 2010

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

23 November 2010

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

Dear Sir,

PRESENTATION

Attached is a presentation to be delivered in Sydney and Melbourne to the Symposium Resources Roadshow.

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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…putting the pieces together

Corporate Presentation Sydney 23 November 2010 Melbourne 24 November 2010

Corporate snapshot

Shareholder profile*

Exchanges ASX: ALK ADR: ANLKY Share Price (19 November 2010) A$0.74 Shares 249m Fully Diluted Market Cap ~A$185m Cash ( a t 30 ep S t em b er 2010) ~A$6 . 8 m No debt 12 Month High / Low A$1.19/ $0.23 Source: FT

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Retail
Top 20 ~60%
Institutions
Directors & Management 3%
at 30 june 2010 Abbotsleigh (Gandel Metals) 29%
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Directors & Management J. S. F. Dunlop Chairman D. I. Chalmers Managing Director A . . D Lethlean Non ‐ Executive Director I. J. Gandel Non‐Executive Director L.A. Colless CFO Joint Secretary K.E. Brown Joint Secretary T W Ransted Chief Geologist M D Sutherland General Manager NSW

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M D Sutherland General Manager NSW
Source: FT
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Business Strategy

Multi commodity explorer and miner, focussed in the Central West of New South Wales, Australia

Dubbo Zirconia Project – world class resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earths

Gold production from Peak Hill mine 1996 – 2005. New gold development planned at Tomingley based upon 800,000 oz resource

Major gold discovery at McPhillamys (~3 million oz) Jo nt enture w ti V i h Newmont

Develop multiple operations within tight geographic area over next five years

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Au Au Cu
Zr Nb Cu
Y REE
Au
150km area
Au
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Dubbo Zirconia Project Zirconium, niobium, yttrium, rare earth elements

Definitive Feasibility Study TZ Minerals International Pty Ltd Study managers: Steve Gilman and G av n i Diener Marketing: Alister MacDonald (TCMS) and Dudley Kingsnorth (IMCOA) DPP Operations: ANSTO Minerals Group

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Rare Metals ‐ Rare Earths

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Rare Metals – Rare Earths

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• China produces 90% of world downstream zirconium chemicals

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• China is limiting the export of raw rare earths materials

• China currently produces 95% of world REE output

Rare metals Light rare earths Mids Heavy rare earths

• Brazil produces 90% of world niobium

� Green technology is dependent on � Increased demand also driven by changes in legislation � China has dominant position

� Green technology is dependent on rare metals and rare earths

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…not so rare, but increasingly valuable

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Rare Metal ‐ Rare Earth Businesses

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ZIRCONIUM

Zircon Zirconium silicate ZrSiO4 Primary Zr mineral source 2010 1.4 million tonnes ~US$1.6 billion � US$2B Zirconium products Zirconia ZrO2 , Zirconium chemicals, metal ~ 2010 120 000 tonnes, US$0 7 billion. � US$1B

NIOBIUM

Niobium pentoxide Nb2O5 Ferro-niobium FeNb 2010 85,000 tonnes ~US$2.0 billion � US$3B

RARE EARTHS

Separated rare earth products 2010 130,000 tonnes ~US$2.0 billion � US$4B

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DZP Program

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Resource drilling completed 2001. Flow sheet developed 1999 to 2002, with trials to m n pi i ilot p ant sca e. etal l D iled feasibility study comp etel d in 2002.

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 commenced at ANSTO Lucas Heights (Australian Nuclear Science and Technology Organisation) July 2006, with Demonstration Pilot Plant commissioned March 2008

Substantial Zr and Nb product samples from DPP distributed to potential customers 2009-2010. Y and REE product samples scheduled for early 2011.

Continual market update – strong growth predicted in most products

2010 – 2011 Revise and update the 2002 feasibility study by Q2 2011. DFS managed . By Perth based consultants TZ Minerals International Pty Ltd (TZMI)

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Dubbo Zirconia Project Location Dubbo reg on pop i 80 000, State power grid State gas grid Major mixed agriculture Transport hub Substantial light industry

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DZP Resources

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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% U O 3 8 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 uran um s curreni i tly prohibited in NSW

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DZP Flow Sheet

DZP Demonstration Pilot Plant

DZP Products

Zirconium A lications pp

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Zirconium Chemicals
Current Zirconia
,
Zirconium Chemical
Uses
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2015 Estimated 150,000 tonnes with industry growth rate of 4.5%pa High growth areas: Advanced ceramics and catalysts 13.0%pa Ceram c p gmeni i ts .8 0%pa Zirconium metal for nuclear applications ? Products range from US$4/kg to US$20/kg Metal US$200/kg

Zircon price and supply will have a major impact on the cost and availability of zirconium chemicals, zirconia and zirconium metal

Source: TZMI

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Niobium A lications pp

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Niobium Demand
Niobium 2008
(Ferroniobium units)
consumption
~85,000t – 90% Brazil
Estimate for 2012
~100,000t
Ferron oi bium pr ce sp rai i lled to US$60/kg n i March 07 and is currently around US$35 - 40/kg
Long term expected to be in US$25 - $35/kg
Sources: IAMGOLD / TZMI
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REE A lications pp

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Source: Molycorp
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Rare Earth Consum tion and Pricin
p g
Light Rare Earth
DZP Average as
REOs
US$10/kg Q1 2010
US$12/kg Q2 2010
US$16/kg July 2010
US$28/kg 9 August 2010
US$31/kg Q3 2010
US$58/kg mid Nov 2010 spot
Yttrium Heavy REs
DZP Average as
REOs
US$33/kg Q1 2010
US$42/kg Q2 2010
US$55/kg July 2010
US$64/kg 9 August 2010
US$65/kg Q3 2010
US$75/kg mid Nov 2010 spot
Total YREE demand 2014 estimated to be 200,000 tonnes
Source: IMCOA
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	DZP Product Output
	Base case model of 400,000 tonnes pa and expanded 1 million tonnes pa of ore processed
		Production Outputs Product 400,000tpa 1,000,000tpa
		Production Outputs
		Product	400,000tpa	1,000,000tpa
		ZBS, ZOH, ZBC, ZrO2	15,000tpa (6ktpa ZrO2)	37,000tpa (15ktpa ZrO2)
		Nb -Ta concentrate	2,000tpa (1.4ktpa Nb2O5)	5,000tpa (3.5ktpa Nb2O5)
		LREE concentrate	1,980tpa (REOs)	4,950tpa (REOs)
		YHREE concentrate	600tpa (REOs)	1,500tpa (REOs)
		�ZBS = zirconium basic sulphate; ZOH = zirconium hydroxide; ZBC = zirconium carbonate Equivalent ~99% ZrO2 + HfO2 Base case revenues ~US$135m 1 Mt pa ~US$335m Open pit life 200 years Open pit life 80 years
		�Nb-Ta concentrate = ~70% Nb2O5 + Ta2O5 calcined basis �LREE = La, Ce, Nd �YHREE = Y, Gd, Dy, Tb

DZP Potential Revenues

	DZP Potential Revenues	DZP Potential Revenues	DZP Potential Revenues	DZP Potential Revenues	DZP Potential Revenues	DZP Potential Revenues	DZP Potential Revenues
		Potential Revenues November 2010
		Potential Revenues November 2010
		Product	400,000tpa (Base Case)
		ZBS, ZOH, ZBC, ZrO2	6,000tpa ZrO2	@ $5/kg = $30Mpa	@ $7/kg = $35Mpa
		Nb -Ta concentrate	1,4000tpa Nb2O5	@ $25/kg = $35Mpa	@ $35/kg = $49Mpa
		LREE concentrate	1,980tpa (REOs)	@ $31/kg = $43Mpa*	@ $58/kg = $80Mpa**
		YHREE concentrate	600tpa (REOs)	@ $65/kg = $27Mpa*	@ $75/kg = $32Mpa**
		TOTAL	9 980tpa ,	US$135Mpa	US$196Mpa
		*** Price average of Q3 2010 for REO basket. Assumes concentrate at 70% of total separated REO Spot price mid-November 2010 for REO basket. Assumes concentrate at 70% of total separated REO
				Conservative	Possible
	Revenue of US$135Mpa is the equivalent of 7.7g/t gold (US$1,350/oz) or 4% copper (US$3.80/lb) output

Revenue of US$135Mpa is the equivalent of 7.7g/t gold (US$1,350/oz) or 4% copper (US$3.80/lb) output

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DZP Strate ic Si nificance g g

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

China dominates downstream zirconium business at ~90% but feed is zircon.

Niobium production dominated by one company, CBMM in Brazil with 90% of market. Rare earth and yttrium production dominated by China (95%). DZP offers new source particularly for important Y and HREE.

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.

Increased demand for many of the metals is driven by environmental legislation to ensure emissions minimisation and energy consumption efficiency

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

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Develo ment athwa p p y

	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway
																2013
				‐> 2009		2010				2011				2012			2013
		DUBBO ZIRCONIA	Resource definition 2001 ‐2002	�
		PROJECT	Flow sheet development 2002	�
			Laboratory Zr – Nb 1999 ‐ 2002	�
			Pilot plant Zr – Nb 2002	�
			Mine Plan & Scheduling 2002	~~�~~
			Plant Design & Engineering 2002	�
			Laboratory Y & REE 2009 ‐			~~�~~
			Demonstration Pilot Plant 2008 ‐
			Z–NbPdtDitibti	~~�~~		~~�~~
			r rouc sruon
			Y ‐ REE Product Distribution
			Secure Offtake Agreements
			Definitive Feasibility Study	2002
			( ) **Environmental Impact EA **	2000 ‐>
			Detailed Design
			Project Financing / Consent
			Construction
		Production CAPEX base case estimated at approximately A$150M + A$30M	Production

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Tomingley Project Gold Definitive Feasibility Study Mintrex Pty Ltd Study Manager: Fiona Morgan Environmental Assessment R W Corkery & Co Pty Ltd

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Tomingley Gold Project, NSW ALKANE RESOURCES: 100% • Three deposits under conceptual development : – Caloma (3 . 86Mt @ . 1 76g/t Au) – Wyoming One (6.59Mt @ 1.86g/t Au) – Wyoming Three (0.84Mt @ 1.75g/t Au) 947 AC, RC and core holes totalling 109,114 metres • Total current combined resource (dil) + 660,000oz – Expansion potential • Deposits open at depth • Significant regional exploration potential • Minimum seven year mine life => +10yr target • Initial open pit +underground operations (Yrs 1‐7) Additional open pit and ug (Yrs 7 ‐10) …advanced feasibility study

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• TGP Infrastructure

• • Infrastructure: – water => 45km pipeline – power (State Grid) => 20km 66Kv power line – roads => primary & secondary access

• • Skilled local workforce – population base of 150,000 within 120km diameter area

• – No FIFO, no accommodation required

• • Capital costs ~A$90 Million – CIL plant A$43m

• – Infrastructure A$22.6m

• – Owners costs A$23m

• Proposed site layout

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TGP Economics

	TGP Economics	TGP Economics	TGP Economics	TGP Economics
		PRODUCTION OUTCOMES	BASE CASE EXPANDED CASE
		Mine Life	7 Years 8 ‐ 10 Years 5.9 Million tonnes 1.5 million tonnes
		Throughput
		Open Pit
		Underground	0.7 million tonnes 0.5 Million tonnes 370,000oz 150,000oz conventional CIL circuit conventional CIL circuit
		Production
		Method
		Recovery	>90% >90% A$90 Million +A$10 Million A$940/oz A$940/oz
		Capex(+/‐ 10%)
		Estimated cash costs
		Potential LOM cashflow	~A$170 Million# A$250 Million#
	# Based on A$1400 per ounce gold price; 1 Mtpa mill throughput …targeting 10 year mine life

Based on A$1400 per ounce gold price; 1 Mtpa mill throughput

…targeting 10 year mine life

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Advanced Exploration Gold ODEJV ‐ McPhillamys Newmont Australia Limited (NAL) Subsidiary of US based Newmont Mining Corporation NAL are the Managers and Operators

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ODEJV
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ORANGE DISTRICT EXPLORATION JOINT VENTURE (ODEJV)

Gold, Copper – Orange, NSW | Alkane Resources: 49%, Newmont Australia: 51%

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TWO FOCUS AREAS:

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MOLONG
•
Molong
Carlin & Ridgeway‐type – targeting copper‐gold porphyry‐style gold
porphyry targets ‐
mineralisation (Ridgeway type) and Carlin style
• Moorilda
MOORILDA
–
drilling confirms a major gold system @
M c Phill amy s ’
Cadia Valley
+50Moz
•
Newmont have earned 51%, to go to 75% by
carrying all expenditures through to completion
Orogenic (structural) of final BFS
gold targets
…low risk with significant upside + 4moz system
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ODEJV Moorilda | McPhillamys

||ODEJV Moorilda | McPhillamys|ODEJV Moorilda | McPhillamys|
|---|---|---|
||INITIAL RESOURCES
•
Indicated + Inferred
+0.3g/t gold||
||92 Mt @ 1.00g/t Au 0.07% Cu
2.96 Moz Au & 60,000t Cu
•
Indicated + Inferred
+0.5g/t gold
61 Mt @ 1.32g/t Au 0.08% Cu||
||2.57 Moz Au & 48,000t Cu
•
Mineralisation open at depth
Deep drilling in progress||
||•
Conceptual studies for both open pit
and block cave mining
•
Preliminary metallurgical scoping
indicates +90% gold recovery from CIL
BASE AREAS
•Ot l 1000 26001/t A||
||
uer ore enveope ,m x m .g u
•
Likely low waste to ore ratio to
significant depth for open pit
• Inner ore zone 600m x 200m to 450m depth
• Average 2.8 SG
Compare Barricks Cowal Operation
• 64Mt @ 1.22g/t Au at start up
• 8Mtpa for ~ 250,000ozpa||
||||
||… potential open cut or block caving operation||

… potential open cut or block caving operation

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Project Development Pipeline
2010 2011 2012 2013
TOMINGLEY GOLD Defin t ve Feasi i ibility Study DFS( )
Environmental Assessment / DA
Project Financing @ $A90m
Construction
Production
DUBBO ZIRCONIA Definitive Feasibility Study (DFS)
Environmental Assessment / DA
Project Financing @ ~A$150m
Construction
Production
McPHILLAMYS Exploration/Pre‐feasibility
Bankable Feasibility Study (BFS)
Construction ? ? ?
Production ?
Galwadgere Exploration/Pre‐feasibility ? ?
Bodangora Exp orationl /Pre‐feasib li ity ? ?
Cudal Exploration/Pre‐feasibility ? ?
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…a perfect fit

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Disclaimer

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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.

Competent P erson

The information in this presentation that relates to mineral exploration, mineral resources and ore reserves is based on information compiled by 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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