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RESOURCES LTD
ABN 35 000 689 216
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16 September 2011

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

Dear Sir,

PRESENTATION

Attached is a copy of the Company’s presentation to the Metals Pages Rare Earths 2011 Conference being held in Beijing.

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

65 Burswood Road, Burswood WA 6100, AUSTRALIA (PO Box 4384, Victoria Park WA 6979, AUSTRALIA) Telephone: +61 8 9227 5677 Facsimile: 61 8 9227 8178 www.alkane.com.au [email protected]

Dubbo Zirconia Project NSW Australia An a ternate source ol rare f earth and zirconium products

Alister MacDonald and Ian Chalmers

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Rare Earths 2011 Beijing 14 ‐ 17 September

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Project Evaluation 1. The Resource – the ore minerals and the host rock 2. Process Development 3. Large sca e conl firmat on oi f fl ow sheet – pilot p antl 4. Market Development 5. Environmental Assessment 6. Financing 7. Production

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Central West Region

Location and Business Strate gy Multi commodity explorer and miner, focussed in the Central West of New South Wales, Australia Region with substantial existing infrastructure 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 650,000 oz resource Major gold discovery at McPhillamys (~3 million oz) Joint Venture with Newmont Develop multiple operations within tight geographic area over next five years. New discoveries at Cudal (Au-Zn) , Bodangora (Au-Cu) and Galwadgere (Cu-Au)

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DZP Infrastructure Dubbo region pop 80,000 State power grid State gas grid Ma or m xei d i lture j agr cu Transport hub Substantial light industry

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DZP Geolo
gy
0 200
metres
Jurassic aged trachyte intrusive
Vo can c p pe open al i i t depth
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DZP Geolo
gy
East-west cross section through centre of deposit
Recent Grits
SEDIMENTS
Basalt Dykes
TRACHYTE
SEDIMENTS
Siliceous Contact
Niobium Zirconium Zone
Horizontal Scale
0 100 m
Rare earth grade identical distribution
as the zirconium and niobium
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DZP Western contact of de osit
p
Trachyte
Sediments
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DZP Ore Mineralo gy Zirconium eudia yl te ZrSiO4 ± Ca, , Y < 2 m - 50 m μ μ Heavy REs armstrongite HREE, H2O +?U Niobium/ NaNbO3 + Ta + ?Th natroniobite < 30 m μ Tantalum also NbFeSiO 4 calcian Ca(REE)(CO3)F basnaesite Rare Earths < 100 m μ rare ancylite Sr(REE)(CO3)H2O The deposit does not contain zircon; pyrochlore; or columbite All ore minerals are soluble in H SO 2 4

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	DZP 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 (0.9% TREO)
	Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres
	TOTAL : 73.2 million tonnes
	Resource defined by 120 RC and diamond core, mostly vertical drill holes drilled on a staggered 50m grid Major world resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements

	The ore is contains low levels of uranium and thorium. Production of uranium is currently prohibited in NSW

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DZP Flow Sheet
Whole of ore sulphuric acid
leach, solvent extraction
separation and refining, with
chemical precipitation to
produce final products.
Unique in the world today.
The process does not produce
a mineral concentrate and does
not concentrate the uranium
and thorium.
These waste products are
neutralised and dispersed in
the residue storage facilities at
less concentration than in the
primary deposit.
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DZP Demonstration Pilot Plant 2008

Marketin ‐ Zirconium A lications g pp

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Zirconium Industr
y
China consumes about
50% of world’s zircon
output.
About 30% of that zircon
is converted to
downstream products.
China currently
produces about 90% of
world’s ZOC and 60% of
FZA.
China has limited
domestic supply of
zircon and acquire from
ma or proj ducers (Aust
and S Africa).
Zircon Zirconium silicate ZrSiO4 Primary Zr mineral source Value
2010 1.2 million tonnes ~US$1.6 billion � US$3.2B DZP is the only short to
medium term substitute
Zircon um proi ducts Zircon a ri Z O2 [, rcon um c] Zi i h [em ca s, r me] i l Z t [a] l
for zircon as a source
2010 120,000 tonnes ~US$0.7 billion � US$1.4B
of Zr
Source: TCMS
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Zircon Su l Demand Price
pp y
20% shortfall by 2020
Zircon prices have
escalated during
2010 and 2011 to
>US$2,300/t
Zircon price and supply will have a major impact on the cost and availability of zirconium
chemicals, zirconia and zirconium metal. China and Japan have declared zirconium a
strategic metal.
Source: TZMI
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DZP Zircon ‐ Zirconium Chemicals Pricin g

DZP Zircon ‐ Zirconium Chemicals Pricing	DZP Zircon ‐ Zirconium Chemicals Pricing	DZP Zircon ‐ Zirconium Chemicals Pricing	DZP Zircon ‐ Zirconium Chemicals Pricing	DZP Zircon ‐ Zirconium Chemicals Pricing	DZP Zircon ‐ Zirconium Chemicals Pricing



	PRODUCT	ZrO2	Q2 2010 US$/T	Q1 2011 US$/T	Q2 2011 US$/T
	Zircon (producer/trader)	65%	$900 ‐$1,150	$1,500 ‐$2,100	$1,700 ‐$2,750
	(100% ZrO2 basis)	100%	($1,440 ‐$1,840)	($2,400 ‐$3,360)	($2,720 ‐$4,400)

	ZOC ( i i hl id ) z rcon um oxyc or e	36%	$1 350 $1 450 , ‐ ,	$2 300 $2 600 , ‐ ,	$3 600 $4 000 , ‐ ,
	(100% ZrO2 basis)	100%	($3,750 ‐$4,025)	($6,400 ‐$7,200)	($10,000 ‐$11,111)
	ZBS (zirconium basic sulphate)	33%	$1,770	$3,000	$6,000
	(100% ZrO2 basis)	100%	$5,360	$9,100	$18,200

	( b b ) ZBC zirconium asic car onate	40%	$2 100 ,	$3 400 ,	$5 400 ,
	(100% ZrO2 basis)	100%	$5,250	$8,500	$13,500
	Fused Zirconia	98.50%	$2,900 ‐$3,100	$4,100 ‐$4,400	$6,000‐$7,000
	Chemical Zirconia	99.50%	$4,200 ‐$4,400	$7,200 ‐$7,500	$10,000‐$12,000
	Chemical Zirconia	99.90%	$5,300 ‐$5,500	$8,500 ‐$10,500	$12,000‐$15,000

*Source: TCMS*

Source: TCMS

Marketin ‐ Niobium A lications g pp

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Structure of Niobium Industr
y
Metallurgical
CBMM in Brazil
� Structural steels
� Stainless and heat produces about 90%
of world demand.
resistant steels
Pyrochlore FeNb
� Superalloys
� Super conducting Early 2011 a Japanese
magnets Korean consortium
acquired 15% of
ColumbiteTantalite Nb2O 5 CBMM for US$1.95B
Oxides
� Glass September 2011 a
� Ceramics Chinese consortium
acquired 15% of
DZP Nb CBMM for US$1.95B
Concentrate
Nb Raw Materials Intermediate Products Applications
Ferro‐niobium FeNb Niobium pentoxide Nb2O5 Value
2010 85,000 tonnes ~US$2.0 billion � US$3B
Source: TZMI
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Niobium Demand and Price
Niobium 2010
(Ferroniobium units)
consumption
~85,000t – 90% Brazil
Estimate for 2012
~100,000t
Ferroniobium price spiralled to US$60/kg in March 07 and is currently around US$40 - 45/kg
Sources: IAMGOLD / TZMI
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Marketin ‐ REE A lications g pp

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Rare Earth Su l ‐ Demand
pp y
Will rare earth supply
demand be in balance
from 2015 with Lynas
and Molycorp
producing?
High probability for
LREE but not HREE
The DZP has a 75%
LREE - 25% HREE
split which gives it a
demand advantage
Separated rare earth products Value
2010 130,000 tonnes ~US$2.0 billion � US$6.5B??
Source: IMCOA
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Financial – DZP Product Out ut and Revenues p

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Base case of 400,000 tonnes pa and expanded 1 million tonnes pa of ore processed


	Potential Production and Revenues
Product	400,000 tonnes per annum	1,000,000 tonnes per annum
ZBS, ZOH, ZBC, ZrO2	6,000tpa US$42M*	15,000tpa	US$105M*
Nb -Ta concentrate	1,400tpa US$42M*	3,500tpa	US$105M*
LREE concentrate	1,415tpa US$57M**	3,540tpa	US$142M**
YHREE concentrate	425tpa US$24M**	1,070tpa	US$63M**
AVERAGED TOTALS	9,240tpa US$160 - 170Mpa	23,110tpa	US$400 - 450Mpa
*Zr @ US$7.00/kg and Nb @ US$30/kg as intermediate average prices Price average of Q4 2010 for REO basket and assumes concentrate at 70% of total separated REO value REO output based on average 50% recovery**

Full operating and capital costs will be detailed in the feasibility study nearing completion

� ZBS = zirconium basic sulphate; ZOH = zirconium hydroxide; ZBC = zirconium carbonate Equivalent ~99% ZrO2 + HfO2

� Nb-Ta concentrate = ~70% Nb2O5 + Ta2O5 calcined basis � LREE = La, Ce, Nd, Pr � YHREE = Y, Gd, Dy, Tb

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DZP Marketin Develo ments g p

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.
Three MOUs completed that should take all of the 1Mtpa zirconium output
Zirconium Niobium LREE YHREE
US$125 – 150M
100%
75%
In Progress In Progress In Progress
50%
25%
0%
Several other MOUs in discussion that will cover all niobium and rare earth outputs.
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Resource is capable of supporting at least 100 year open pit life

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Develo ment athwa p p y

Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway

						2012 2013 2014
		‐> 2009	2010		2011	2012		2013 2014
DZP	Resource definition 2001 ‐ 2002	~~�~~
	Flow sheet development 2002	�									uct
	Laboratory Zr – Nb 1999 – 2002	�					Co	ntin	ue	d prod
	Pilot plant Zr – Nb 2002	�						~~dev~~	~~elo~~	~~pment~~
	Mine Plan & Scheduling 2002	�
	Plant Design & Engineering 2002	�
	Laboratory Y & REE 2009 ‐	�	�
	Demonstration Pilot Plant 2008 ‐
	ZNbPdDiibi	�	�	�
	r – rouct struton										r elopment
	Y ‐ REE Product Distribution			~~�~~
	Secure Offtake Agreements							~~et~~	~~il c~~	~~osts fo~~
	Definitive Feasibility Study	2002					e	xpa	nd	ed dev
	Environmental Impact (EA)	2000 ‐>
	Detailed Design
	Financing / Development Consent
	Construction

	Production

DZP Production Plant La out y

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The Summar y 1. The Resource – the ore minerals and the host rock � 2. � Process Development 3. Large sca e conl firmat on oi f fl ow sheet – pilot p antl � 4. Market Development � 5. Environmental Assessment � 6. Financing � 7. Production � In progress � [Completed or nearing completion]

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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. DZP is the only short to medium term substitute for zircon as a source of Zr

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.

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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Corporate snapshot

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Shareholder profile
Retail Top 20 ~60%
Institutions Directors & Management 3%
at 30 june 2010 Abbotsleigh (Gandel Metals) 26%
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Exchanges ASX: ALK OTCQX: ANLKY Share r ce P i (7 S eptember 2011) A$1 . 93 Shares 269m Fully Diluted Market Cap ~A$520m Cash (at 30 June 2010) ~ A$18m Retail Top 20 ~60% No debt Institutions Directors & Management 3% at 30 june 2010 Abbotsleigh (Gandel Metals) 26% 12 Month High / Low A$2.73/ $0.57 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 T Wright Commercial Manager A MacDonald DZP Marketing Consultant* Source: FT

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Conclusion

Dubbo Zirconia Project

A strateg c ani d alternate supp y or l f the z rcon um, i i niobium and rare earths industries www.alkane.com.au

Definitive Feasibility Study TZ Minerals International Pty Ltd

Study managers: Steve Gilman and Gavin Diener

Marketing: Alister MacDonald (TCMS) and Dudley Kingsnorth (IMCOA)

ANSTO Minerals Group : Bob Ring, Doug Collier, Karin Soldenoff, Des Levins, Chris Griffiths DPP Operations : Adrian Manis, Peter Fletcher, Prakash Rajalingam Environmental Assessment: R W Corkery & Co Pty Ltd

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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 Person

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 o f xp ora E l ti on esu R lt s, Mi nera esources an l R d re eserves. an O R I Ch a mers consen l t s o t th e nc us on n i l i i th e presentation of the matters based on his information in the form and context in which it appears.

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DZP Resource Statement

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