Alkane Resources — Investor Presentation 2011

Mar 3, 2011

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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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4 March 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 updated corporate presentation.

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

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Corporate Presentation March 2011

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Corporate snapshot

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Shareholder profile* Exchanges ASX: ALK OTCQX: ANLKY Share Price (2 March 2011) A$1.18 Shares 269m Fully Diluted Market Cap ~A$315m Cash ( a t 28 e F b ruary 2010) ~A$22 . 2 m Retail Top 20 ~60% No debt Institutions Directors & Management 3% 12 Month High / Low A$1.32/ $0.23 at 30 june 2010 Abbotsleigh (Gandel Metals) 26% 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 Source: FT

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DZP Location

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Central West
New South Wales
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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 Gavin Diener Marketing: Alister MacDonald (TCMS) and Dudley Kingsnorth (IMCOA) DPP Operations: ANSTO Minerals Group Bob Ring, Doug Collier, Karin Soldenoff, Des Levins, Adrian Manis, Chris Griffiths, Peter Fletcher, Prakash Rajalingam Environmental Assessment: R W Corkery & Co Pty Ltd

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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 currently produces 95% of world REE output

• China is limiting the export of raw rare earths materials

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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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 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 The ore is not classified as a radioactive deposit, and production of uranium is currently prohibited in NSW

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DZP Flow Sheet

DZP Demonstration Pilot Plant

Zirconium A lications pp

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Zirconium Industr
y
Zircon Zirconium silicate ZrSiO4 Primary Zr mineral source Value
2010 1.4 million tonnes ~US$1.6 billion � US$2B
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$1B
Source: TCMS
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Zircon Usage Zircon provides the feedstock for the zirconium industry 2012 Global consumption estimate 1,400,000tpa 18% = 250,000t zircon for zirconia and zirconium chemicals Source: TZMI

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Zircon Su l Demand Price
pp y
20% shortfall by 2020
Zircon prices have
escalated by 50%
during 2010 to
US$1,500/t
Zircon price and supply will have a major impact on the cost and availability of zirconium
chemicals, zirconia and zirconium metal. China has declared zirconium a strategic metal.
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Source: TZMI
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Downstream Zirconium Industr y China supplies about 90% of the world’s downstream zirconium products Source: TZMI / TCMS

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DZP Zircon ‐ Zirconium Chemicals Pricin g

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Source: TCMS

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Niobium A lications pp

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Structure of Niobium Industr
y
Metallurgical
� Structural steels
� Stainless and heat
resistant steels
Pyrochlore FeNb
� Superalloys
� Super conducting
magnets DZP process removes
radioactive elements
Columbite such as uranium and
Tantalite Nb2O 5
Oxides thorium, producing
� Glass clean concentrate
� Ceramics
DZP Nb
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
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$43/kg
Sources: IAMGOLD / TZMI
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REE A lications pp

Rare Earth Su l ‐ Demand pp y Separated rare earth products Value 2010 130,000 tonnes ~US$2.0 billion � US$4B

Source: IMCOA

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REE Demand Drivers

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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) S**Ml P© **					Current
		(ource:eta ages )					Spot (28 Feb) $80 $80 $125
		Light Rare Earth	DZP Distribution	Q2 Average	Q3 Average	Q4 Average
		Lanthanum Oxide	19.5%	$7.13	$25.75	$53.00
		Cerium Oxide	36.7%	$5.58	$24.50	$50.00
		Praseodymium Oxide	4.0%	$30.60	$48.25	$77.00
		Neodymium Oxide	14.1%	$31.13	$49.50	$80.00	$ 135 $80 $650 $95
		Samarium Oxide	2.2%	$4.50	$22.25	$34.00
		Heavy Rare Earth
		Europium Oxide	0.07%	$521.67	$570.00	$625.00
		Gadolinium Oxide	2.15%	$8.25	$28.75	$44.00
		T bi O id er um x e	0 34% .	$ 4 00 5 5.	$ 0 00 57 .	60 00 5.	$650 $450 $95 $92 $84
		Dysprosium Oxide	2.05%	$196.67	$275.00	$295.00
		Ho, Er, Tm, Yb, Lu	2.9%
		Yttrium Oxide	15.8%	$11.42	$26.25	$56.00
		DZP LREE	76.68%	$12.06	$30.58	$57.20
		DZP YHREE	23 32% .	$42 23 .	$62 34 .	$78 70 .
		DZP LREE Concentrate Value		$8.44	$21.41	$36.47
		DZP YHREE Concentrate Value		$29.59	$43.64	$57.20
		Compiled by IMCOA
	DZP REE Concentrates expected to return 70% of separated prices Source: IMCOA

DZP REE Concentrates expected to return 70% of separated prices

Source: IMCOA

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DZP Product Out ut and Revenues p

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

			Potential Production and Revenues January 2011
		Product	400,000 tonnes per annum	1,000,000 tonnes per annum
		ZBS, ZOH, ZBC, ZrO2	6,000tpa US$33.0M*	15,000tpa	US$82.5M*
		Nb -Ta concentrate	1,4000tpa US$35.0M*	3,500tpa	US$87.5M*
		LREE concentrate	1,980tpa US$79.3M**	4,950tpa	US$198.2M**
		YHREE concentrate	600tpa US$33.1M**	1,500tpa	US$82.7M**
		TOTAL	9,980tpa US$180.4Mpa	24,950tpa	US$450.9Mpa
		Zr @ US$5.50/kg and Nb @ US$25/kg as intermediate average prices as at Q4 2010* Price average of Q4 2010 for REO basket and assumes concentrate at 70% of total separated REO value		of LREE @ US$57/kg and YHREE @ US$79/kg

Base Case Operating costs ~ A$60m Open pit life 200 years Capex ~ A$200m

Expanded Opex ~ A$120m Open pit life +80 years Capex ~ A$400m

� 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 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
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	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	Developmentpathway	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	�
			Laboratory Zr – Nb 1999 – 2002	�
			Pilot plant Zr – Nb 2002	�
			Mine Plan & Scheduling2002	~~�~~
			Plant Design & Engineering 2002	~~�~~
			Laboratory Y & REE 2009 ‐	�
			Demonstration Pilot Plant 2008 ‐
				�		�
			Zr Nb Product Distribution –
			Y ‐ REE Product Distribution
			Secure Offtake Agreements
			Definitive Feasibility Study	2002
			Environmental Impact (EA)	2000 ‐>
			Detailed Design
			Project Financing / Consent
			Construction
			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: Cl
	aoma (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 (d)+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)

TGP Financials

	TGP Financials	TGP Financials	TGP Financials	TGP Financials
		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 2014
TOMINGLEY GOLD Definitive easF ibility Study (DFS)
Environmental Assessment / DC
Project Financing @ $A90m
Construction
Production
DUBBO ZIRCONIA Definitive Feasibility Study (DFS)
Environmental Assessment / DA
Project Financing @ ~A$2/400m
Construction
Production
McPHILLAMYS Exploration/Pre‐feasibility
Bankable Feasibility Study (BFS)
Construction ? ? ?
Production ?
Galwadgere Exploration/Pre‐feasibility ? ?
Bodangora Exp oral tion/Pre‐feasibility ? ?
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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