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R ESOURCES L TD
ABN 3 5 0 0 0 6 8 9 2 1 6
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21 June 2011

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

Dear Sir,

PRESENTATION

Attached is a copy of presentation to the Rare Earths and Strategic Metals 2011 conference being held in Sydney this week.

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]

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Dubbo Zirconia Project NSW Australia An example of the process required to take a next generation polymetallic rare metal and rare earth deposit into production

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The Process in 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

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Location
Central West
New South Wales
Perth
Sydney
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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 Geolo
gy
0 200
metres
Jurass c agei d trachyte ni trus vei
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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
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DZP Western contact of de osit
p
Trachyte
Sediments
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DZP Ore Mineralo
gy
Zirconium Minerals
BSE image x 2300: HREE-rich Zr-silicate
Zr-Si hosted within Zr-silicate
ANSTO March 2007
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DZP Ore Mineralo
gy
Niobium Minerals
BSE image x 600:
Nb mineral in Fe-Mn
carbonate Natroniobite
ANSTO March 2007
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DZP Ore Mineralo
gy
Light Rare Earth Minerals
BSE image x 250:
Ca bastnaesite
Altered Ca-bastnaesite
ANSTO March 2007
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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 All ore minerals are soluble in H SO 2 4

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DZP Host Rock Mineralo gy

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• - ~ K feldspar - partly sericitised 30 - 40%

• albite (sodic feldspar) ~30 - 40%

• aegerine (sodic clinopyroxene) ~15 - 20% • minor calcite, siderite, uq artz, rhodocrosite Weathering down to 10-15 metres depth No impact on mineral assemblage

Only calcite, siderite and rhodocrosite dissolve in H2SO4, so only minor contaminants in solution

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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

Process Develo ment ‐ DZP Metallur p gy

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

Current flow sheet can be described as a selective sulphuric acid leach, with value metals solubilised and only minor contaminants going into solution. Solvent extraction and refining produces a suite of high purity end products.

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DZP Flow Sheet
Heavy REs
Niobium
Zirconium
Light REs
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DZP Mini ilot lant 2002 p p

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 Zirconium silicate ZrSiO4 Primary Zr mineral source Value zircon and acquire from
2010 1.2 million tonnes ~US$1.6 billion � US$3.2B major producers (Aust
and S Africa).
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
2010 120,000 tonnes ~US$0.7 billion � US$1.4B
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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Marketin ‐ Niobium A lications g pp

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Structure of Niobium Industr
y
Metallurgical
� Structural steels
� Stainless and heat CBMM in Brazil
Pyrochlore FeNb resistant steels produces about 90%
� Superalloys of world demand.
� Super conducting
magnets
Early 2011 a Japanese
Korean consortium
Columbite
Tantalite Nb2O 5 acquired 15% of
Oxides CBMM for US$1.95B
� Glass
� Ceramics
DZP Nb DZP process removes
Concentrate
radioactive elements
such as uranium and
thorium, producing
Nb Raw Materials Intermediate Products Applications
clean concentrate
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
Niobium 2008
(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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DZP Rare Earth Pricin g

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DZP Rare Earth Pricing	DZP Rare Earth Pricing	DZP Rare Earth Pricing	DZP Rare Earth Pricing	DZP Rare Earth Pricing	DZP Rare Earth Pricing	DZP Rare Earth Pricing	DZP Rare Earth Pricing
	Rare Earths Prices 2010 (US$/kg REO) (Source:Metal Pages© )
	Light Rare Earth	DZP Distribution	Q2 Average 2010	Q3 Average 2010	Q4 Average 2010	Q1 Average 2011	Spot 8 June $149 $150 $240
	Lanthanum Oxide	19.5%	$7.13	$25.75	$53.00	$95.00
	Cerium Oxide	36.7%	$5.58	$24.50	$50.00	$96.00
	Praseodymium Oxide	4.0%	$30.60	$48.25	$77.00	$155.00
	Neodymium Oxide	14.1%	$31.13	$49.50	$80.00	$170.00	$320 $130 $3,000 $195
	Samarium Oxide	2.2%	$4.50	$22.25	$34.00	$95.00
	Heavy Rare Earth
	Europium Oxide	0.07%	$521.67	$570.00	$625.00	$820.00
	Gadolinium Oxide	2.15%	$8.25	$28.75	$44.00	$130.00
		4
	Terbium Oxide	0 3% .	$545 00 .	$570 00 .	605 00 .	$830 00 .	$2 920 , $1,490 ........$165........ $195
	Dysprosium Oxide	2.05%	$196.67	$275.00	$295.00	$520.00
	Ho, Er, Tm, Yb, Lu	2.9%
	Yttrium Oxide	15.8%	$11.42	$26.25	$56.00	$125.00
	DZP LREE	76.68%	$12.06	$30.58	$57.20	$112.00
	DZP YHREE	23 32%	42 23	62 34	78 70	157 00
		.	$ .	$ .	$ .	$ .	$312 ........ ........ $136 $219
	DZP LREE Concentrate Value		$8.44	$21.41	$40.04	$79.00
	DZP YHREE Concentrate Value		$29.59	$43.64	$55.09	$110.00
	*Compiled by IMCOA*

	DZP REE C d 0 f d i oncentrates expecte to return 7 % o separate pr ces Q4 average prices currently used in revenue projections
*Source: IMCOA*

Source: IMCOA

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DZP Marketin Develo ments g p

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Major MoU just announced: JV to develop 15,000t to 20,000t ZOC production (~6,000 – 7,000t of ZrO2 equivalent) facility using DZP intermediate zirconium feed. This JV would consume all the Base Case Zr output and almost assures the development of the 1Mtpa operation.

Target markets in Japan, Europe and North America.

Advanced discussions with other zirconium consumers / marketing specialists to secure sales for all remaining 1Mtpa Zr output. Many product samples distributed for evaluation.

MoU advanced with niobium consumer to look at JV to produce ferro-niobium from DZP niobium concentrate for specialised alloy markets.

Numerous discussions for sale or JV of light rare earth concentrate and heavy rare earth concentrate. Samples distributed for consumer evaluation.

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DZP Environmental Monitorin Stations
g
�
� Noise Monitoring Site
� Dust Monitoring Site
�
�
�
�
� Water Monitoring Site
� �
� � Permanent Weather Station
�
� �
� � Environmental Studies
� � Completed 2002 and now
�� being updated
� �
�
� �
� Flora
�
� Fauna
�
Transport
�
� � Surface and groundwater
� Social impact
Aboriginal heritage
� � Natural radioactivit y
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DZP Radioactive Elements

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All rare metal – rare earth deposits contain some radioactive elements such as uranium and thorium.

The Toongi deposit contains low levels of radioactive elements, uranium and thorium, and has low level natural emissions.

The DZP flow sheet does not produce a mineral concentrate from the ore, and hence does not generate increased radioactivity.

The DZP flow sheet does not focus radioactive elements internally to a level that requires specific management and produces clean chemical concentrates in final products.

------------------------------------------------------------------------------------------------------------

The DZP waste streams are diluted with limestone/lime for neutralisation, which further dilutes any contained radioactive elements such that they are of lower concentration than in the deposit. All wastes are contained within the project site. The deportment and concentration of “daughter products” (radionuclides) within the process streams is an important consideration. Not just uranium and thorium.

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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 due later in July

� 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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Construction ‐ DZP Site aerial Image
Toongi deposit
Proposed plant site
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DZP Plant La out
y
Administration
Product recovery
Kilns
Solvent Extraction
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			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

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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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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 (17 J une 2011) A$2 . 40 Shares 269m Fully Diluted Market Cap ~A$650m Cash (at 31 March 2010) ~ A$22m 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/ $0.23 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* 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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