Alkane Resources — Investor Presentation 2012

Jan 23, 2012

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RESOURCES LTD
ABN 35 000 689 216
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24 January 2012

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

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 mail@alkane.com.au

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January 2012

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Equity

• Shares – 269,028,158

• Options – nil

• Share price – A$1.00

• Market Capitalisation – A$269M

• Cash – A$9M (31 Dec 2011)

• Debt – nil

• Share turnover – A$55M per month (average 2011)

• 12 Month Low/High – A$0.89/$2.73

• Codes – ALK (ASX)

• ANLKY (OTCQX )

Cover page (clockwise from bottom-left)

• 1/ Peak Hill Gold Mine (formerly mined by Alkane Resources)

Equity & Ownership

Ownership

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As at 30 December 2011
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  - _Major Shareholder: Abbotsleigh (Gandel Metals) – 26%_

• $3.50 Alkane Resources (12 months)

• $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00

• 2/ Tomingley Gold Project - drilling in the harvest

• 3/ Dubbo Zirconia Project pilot plant - Lucas Heights

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Location and Business Strategy

Location

• 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.

• Peak Hill Gold mine – gold production from 1996 ‐ 2005.

• Tomingley Gold project – new gold development planned to commence 2013 based upon 660,000 oz resource.

• McPhillamys Gold project – major gold discovery (~3 million oz). Joint Venture with Newmont .

• Develop multiple operations over next five years – within tight geographic area. New discoveries at Cudal (Au‐Zn) , Bodangora (Au‐Cu) and Galwadgere (Cu‐Au).

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Central West Region
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Board

• John Stuart Ferguson Dunlop (Chairman). BE(Min), MEngSc(Min). Mining engineer with 40 years surface and underground mining experience in Australia and overseas. Former director of the Australian Institute of Mining and Metallurgy. Chairman of Alliance Resources and Non‐ Executive Director of Gippsland Ltd.

• David Ian Chalmers (Managing Director). MSc. Geologist with over 40 years experience in the mining and exploration industry in all facets of exploration through feasibility and development to the production phase in Australia and overseas.

• Ian Jeffrey Gandel (Director). LLB, BEc. Extensive experience in retail property and resource companies. Former Director of Gandel Retail Trust. Investor in the mining industry through Gandel Metals. Executive Director of Alliance Resources, and Chairman of Gippsland Ltd and Octagonal Resources Ltd.

• Anthony Dean Lethlean (Director) BAppSc . Geologist with 10 years mining experience. Former resources analyst with various stockbrokers . Consultant to Cartesian Capital. Non‐ executive director of Alliance Resources Ltd .

Board & Management

Senior Management

• Terry Ransted (Chief Geologist). Geologist with 29 years experience in many facets of exploration and regional geological programs. Terry also has many years experience in resource and reserve estimation.

• Michael Sutherland (General Manager NSW). Geologist with 17 years experience in the mining industry in both South Africa and Australia. Michael was the Environmental Superintendent at Alkane’s Peak Hill Gold Mine and manages all the environment, O,H & S and community liaison for the operation.

• Tony Wright (Commercial Manager). Has more than 20 years as director and/or company secretary of public (listed and unlisted) and private companies from incorporation (in Australia, South Africa and Zimbabwe) through to listing in administrative roles in mineral exploration for multi‐ nationals as well as smaller Australian companies.

• Alister MacDonald (DZP Marketing). A ceramic engineering degree from UNSW, with over 25 years experience in product and market development of zirconia and other ceramics materials in Australia and overseas.

• TGP Project Manager – appointment imminent

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Operations Team

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BOARD
Managing Director
Ian Chalmers
Company Secretary Commercial Manager Chief Geologist General Manager NSW Environmental Consultants
Lindsay Colless CFO Tony Wright Terry Ransted Mike Sutherland
R W Corkery Pty Ltd
Karen Brown Commercial & Legal Technical Management Environment, OH&S
DFS Mintrex P/L TGO Pty Ltd Exploration Team Australian Zirconia Ltd Marketing Consultant
Fiona Morgan Alister MacDonald
Orange Office
Dubbo Office
Peak Hill Gold Mine
TGP Project Manager Demonstration pilot plant ANSTO Minerals
EPCM Mintrex P/L DFS TZ Minerals International
DZP Project Manager
Fiona Morgan Construction Steve Gilman
Greg Foster TZMI Engineering Gavin Diener
EPCM
TGP Operations Construction
Engineering
TGP = Tomingley Gold Project
TGO = Tomingley Gold Operations Pty Ltd DZP Operations
DZP = Dubbo Zirconia Project
EPCM = Engineer, procure, construct and manage
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Assets

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Alkane Resources
Emerging Producers Advanced Resources Exploration Discoveries Exploration
Moorilda
100% Dubbo Zirconia 49% 100% Bodangora 100%
McPhillamys Calula
Project Glen Hollow
Newmont
100% Tomingley Gold 100% Peak Hill 100% Wellington 100% Diamond Creek
Project Galwadgere
100% Cudal 49% Orange District EJV
Bowan Park Newmont
21% Leinster Area JV, WA
Xstrata
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Emerging Producers

• Dubbo – 400km NW of Sydney

• Tomingley – 50km SW of Dubbo

• McPhillamys – 35km SE of Orange

Exploration

• Bodangora – 40km SE of Dubbo

• –

• Wellington 50km SE of Dubbo

• Cudal – 40km W of Orange

Project Locations

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McPhillamys
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Dubbo Zirconia Project

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Outcrop of Toongi deposit
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Infrastructure

• –

• Population 80,000 Dubbo regional

• –

• Rail railway hub

• –

• Road major highways intersection/hub

• –

• Water numerous sources

• –

• Electricity NSW State power grid

• –

• Gas NSW State gas grid

• –

• Industrial substantial light industry

• –

• Agriculture major agricultural hub

Infrastructure

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Resources & Reserves

Resources & Reserves

• –

• Resources & Reserves open at depth

• –

• Life +20 years but can support longer life and higher production rates

• Major world resource ‐ zirconium, hafnium, niobium, tantalum, yttrium & rare earth elements

Resources	Depth (m)	Tonnes (Mt)	Grade
Measured	0-55	35.7	1.94% Zr02, 0.04%HfO2, 0.46% Nb2O5 , 0.03% Ta2O5 , 0.14% Y2O3, 0.74% REO (0.9% TREO)
Inferred	55-100	37.5	As above
Total	0-100	73.2	As above
Reserves
Proven	0-26	8.1	1.93% Zr02, 0.04%HfO2, 0.46% Nb2O5 , 0.03% Ta2O5 , 0.14% Y2O3, 0.75% REO (0.9% TREO)
Probable	26-45	27.9	As above
Total	0-45	35.9	As above

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Product Output & Revenues

1.0Mtpa Throughput

• –

• 39% of revenue Zirconium

• –

• 22% of revenue Niobium

• 21% of revenue – LREE

• 18% of revenue – YHREE

Anticipated Production & Revenues (1.0Mtpa)	Anticipated Production & Revenues (1.0Mtpa)	Anticipated Production & Revenues (1.0Mtpa)	Anticipated Production & Revenues (1.0Mtpa)	Anticipated Production & Revenues (1.0Mtpa)	Anticipated Production & Revenues (1.0Mtpa)
Products	Price/kg predicted	Price/kg used	Production / Sales	Revenues	Revenue %
Zirconium	US$10 ‐ 15	US$10.60	15,700tpa	A$196M	39%
Niobium	US$42 ‐ 45	US$45	3,005tpa	A$111M	22%
LREE concentrate	US$40	US$30	3,050tpa	A$108M	21%
YHREE concentrate	US$55	US$68	1,120tpa	A$90M	18%
TOTAL			22,875tpa	A$504Mpa	100%
Tonnage based upon recoveries developed from mass balances of the demonstration pilot plant, and revenues based upon flat long term pricing and an exchange rate of A$:US$ of 0.85. Numbers are rounded. Product prices predicted Q2 2011 average

• Zirconium Products - ZBS = zirconium basic sulphate; ZOH = zirconium hydroxide; ZOC = zirconium oxychloride Equivalent ~99% ZrO2 + HfO2

• Nb-Ta conc / FeNb = ~70% Nb2O5 + Ta2O5 calcined basis

• LREE = Light Rare Earths (La, Ce, Nd, Pr)

• YHREE = Yttrium & Heavy Rare Earths (Y, Gd, Dy, Tb)

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Definitive Feasibility Study

• Base case – 0.4Mtpa (superseded)

• Current case – 1.0Mtpa (base case)

• CAPEX – $893M ($751M pre‐contingency)

• EBITDA – $308Mpa

• IRR – 30%

• NPV – $1,207M

• Mine Life – initial 20 years; overall much greater

DFS Financials

	DUBBO ZIRCONIA PROJECT	DUBBO ZIRCONIA PROJECT
	Financial	Summary (A$)
	Project Capacity	0.4Mtpa	1.0Mtpa
	Capex – Plant1	$278M	$543M
	Infrastructure + Owners	$84M	$165M
	SUB TOTAL	$362M	$708M
	EPCM	$36M	$43M
	Contingency	$72M	$142M
	TOTAL	$470M	$893M
	Revenue	$189M	$504M
	Operating Costs	$97M	$196M
	EBITDA2	$92M	$308M
	IRR3	16.8%	30.2%
	NPV4	$181M	$1,207M

1. Includes acid plant

2. Annual average after ramp up

3. 20 year life pre-tax

4. 20 year life after-tax

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Process Plant

Processing

• –

• Demonstration Pilot Plant established 2008

• –

• ANSTO Aust. Nuclear Science & Tech. Org.

• –

• Process unique & advanced

• –

• Optimization ongoing

• Sulphuric acid leach whole of ore

• Solvent extraction, separation & refining

• Chemical precipitation

• Zirconium products

• Niobium products

• Heavy RE product

• Light RE product

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Radionuclides

Uranium & Thorium

• ANSTO – assists with management of radionuclides, such as uranium & thorium

• –

• Radioactive elements low levels contained within the deposit (100ppm U & 450ppm Th)

• –

• Innovative process no concentrate produced (uranium/thorium not concentrated)

• –

• Uranium/Thorium in waste streams limestone to neutralise and stabilise – U & Th then lower concentration than in the deposit

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Marketing

Off‐take

• Zirconium (39% of revenue) – 100% under MOU

• Niobium (22% of revenue) – 100% under MOU

• LREE (21% of revenue) – advanced negotiations

• YHREE (18% of revenue) – advanced negotiations

• Throughput – there are four MOU’s which virtually guarantee production at 1Mtpa

• Revenue – the four MOU’s represent an estimated annual income of US$260M

Memorandums of Understandings (MOU’s)	Memorandums of Understandings (MOU’s)	Memorandums of Understandings (MOU’s)	Memorandums of Understandings (MOU’s)
MOU	Date Announced	Product	Details
1	16 May 2011	Zirconium	Leading chemical company & trading company to produce zirconium oxychloride
2	26 July 2011	Zirconium	JV with Australia’s Mintech Chemical Industries to produce zirconium oxychloride
3	15 August 2011	Zirconium	JV with leading European manufacturing / trading company to market DZP products
4	26 October 2011	Niobium	European company to produce and market ferro-niobium

• Primary filter cake contains ~ 200ppm Ta2O5. At 1Mtpa this equates to about 200tpa (>400,000lbs pa ). A program has commenced to review recovery of this valuable Ta2O5 product

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Environmental Impact

Environmental Impact Statement – key areas of focus

• Existing land use (agriculture)

• Air quality

• Noise and vibration

• Surface and ground water

• Soil stability

• Flora and fauna

• Biodiversity

• Visibility

• Rail freight movements

• Road traffic

• Aboriginal heritage

• Natural radioactivity

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Zirconium

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Niobium

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Rare Earth Elements

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DZP Timetable

		‐> 2009	2010	2010	2010	2010	2011	2011	2011	2011	2012	2012	2012	2012	2013	2013	2013	2013	2014	2014	2014	2014
DZP	Resource definition 2001 ‐ 2002	~~~~
	Flow sheet development 2002	
	Laboratory Zr – Nb 1999 – 2002	
															~~Con~~	~~tin~~	~~ed~~	~~r~~	~~d~~	~~ct~~
	Pilot plant Zr – Nb 2002														d	ev	elo	~~p~~ pme	nt
	Mine Plan & Scheduling 2002	
	Plant Design & Engineering 2002	
	Laboratory Y & REE 2009 ‐			
	Demonstration Pilot Plant 2008 ‐
	Zr – Nb Product Distribution									
	Y ‐ REE Product Distribution									
	Secure Offtake Agreements
																							~~t~~
	Definitive Feasibility Study	2002													D	etai	l c	osts	fo	r ~~l~~
	Environmental Impact (EA)	2000 ‐>													~~e~~	~~pa~~	~~nd~~	~~d~~	~~ev~~	~~eo~~	~~pm~~	~~en~~
	Detailed Design
	Financing / Development Consent
	Construction
	Production

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Tomingley Gold Project

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TGP Processing plant
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Tomingley Gold Project

Project Highlights

• CAPEX – A$95M ($48M plant; $23M infrastructure; $23M owners costs)

• Throughput – 1.0Mtpa

• Head Grade – 1.88g/t

• Recoveries – 93%

• Gold Production – 50,000ozpa

• Cash Costs – A$942/oz

• Life – 7.5years (targeting +10 years)

• Resource – 11.3Mt @ 1.82g/t (660,000oz)

• Exploration – significant upside

• Mine method – open cut & underground

• Infrastructure

• water ‐ 45km pipeline

• power ‐ State Grid with 20km 66Kv power line

• roads ‐ primary & secondary access

• Skilled local workforce

• 150,000 population within 120km diameter area

• no accommodation required (no fly‐in / fly‐out)

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Tomingley Gold Financials

Financial Highlights

• EBITDA – $30Mpa (average)

• NPV – A$79M @ A$1,700/oz (circa 40% hedged)

• Debt & Hedging – mandate with Credit Suisse to provide up to A$45M debt facility + gold hedging

• Hedging – flat forwards for 3.5 years

Financial Summary	Financial Summary	Financial Summary	Financial Summary	Financial Summary
Gold Price	A$1,500 / oz	A$1,600 / oz	A$1,700 / oz	A$1,800 / oz
Revenue	$554M	$591M	$629M	$665M
EBITDA*	$167M	$201M	$225M	$269M
IRR	17.7%	25.1%	32.2%	39.4%
NPV	$28.4M	$53.6M	$78.7M	$103.9M

Notes: EBITDA* includes all royalties. Based on initial 7.5 year open pit and underground operation producing 370,000 ounces.

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McPhillamys Gold Project (49%)

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Core drilling at McPhillamys

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McPhillamys Gold Project

Project Highlights

• Joint venture – Newmont has 51% but may go to 75%

• Resource (+0.3g/t cut) – 92Mt @ 1.0g/t gold (3.0Moz)

• Resource (0.5g/t cut) – 61Mt @ 1.3g/t gold (2.6Moz)

• Copper credits (<0.1%)

• Mining method – open cut or block cave

• Recoveries – +90% from CIL (preliminary metallurgy)

• Strip ratio – low

• Exploration – upside (open at depth)

• McPhillamys dimensions:

• Outer ore envelope 1,000m x 260m 0.1g/t Au

• Inner ore zone 600m x 200m to 450m depth

• Comparison with Barrick’s “Cowal Gold Mine”:

• 64Mt @ 1.2g/t gold at start up

• 8Mtpa for ~ 250,000ozpa currently

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Exploration

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Core drilling at Bodangora

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Discoveries in 2010‐2011

• Bodangora (100%) – NSW. Glen Hollow gold‐copper: – 46m @ 0.9g/t gold & 0.25% copper

• 18m @ 1.7g/t gold & 0.45% copper

• Wellington (100%) – NSW. Galwadgere copper‐gold: – 2Mt @ 1.0% copper & 0.3g/t gold (with upside)

• 14m @ 0.9% copper & 1.1g/t gold‐recent deep hole

• Cudal (100%) – NSW. Bowen Park gold‐zinc:

• 17m @ 1.2g/t gold & 2.9% zinc

• 4m @ 2.2g/t gold 7.0% zinc

Other Projects

• Calula (100%) – NSW

• Diamond Creek (100%) – NSW

• Moorilda (49%) – NSW (Newmont JV)

• Orange Molong (49%) – NSW (Newmont JV)

• Miranda Well (21%) – WA (Xstrata JV)

• McDonough (21%) – WA (Xstrata JV)

Exploration

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Project Timetable

	TIMETABLE		2010	2010	2010	2010	2011	2011	2011	2011	2012	2012	2012	2012	2013	2013	2013	2013	2014	2014	2014	2015
	TOMINGLEY GOLD	Definitive Feasibility Study (DFS)
		Environmental Assessment / DC
		Project Financing @ $A90M
		Construction
		Production
	DUBBO ZIRCONIA	Definitive Feasibility Study (DFS)
		Environmental Assessment / DC
		Project Financing
		Construction
		Production
	McPHILLAMYS	Exploration/Pre‐feasibility
		Bankable Feasibility Study (BFS)
		Construction																	?			?
		Production																				?
	Galwadgere	Exploration/Pre‐feasibility											?		?				?
	Bodangora	Exploration/Pre‐feasibility											?		?				?
	Cudal	Exploration/Pre‐feasibility											?		?				?

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Outlook

Conclusion

• Dubbo Zirconia Project (DZP):

• Global Strategic Significance – a long term, significant project in the zirconium and heavy rare earth

• industries, which can generate substantial cash flows

• Production costs – spread across the four metal outputs which will assist to insulate the DZP from price

• instability in certain sectors. Four outputs:

• (i) zirconium

• (ii) niobium (tantalum)

(iii) light rare earths

(iv) heavy rare earths (plus yttrium)

• Tomingley Gold ‐ provides cash flow insurance against any DZP delays and possible slow down in world growth. It also has mine life upside and provides operating expertise.

• McPhillamys Gold ‐ a promising project with a global major.

• Exploration ‐ a tight geographical focus in NSW with exploration success, provides further development potential.

• CONCLUSION ‐ Alkane is a long term investment opportunity with a clear development strategy of multiple operations with substantial emerging cash flow, and capacity to pay dividends.

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Disclaimer

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.

This document has been prepared in accordance with the requirements of Australian securities laws, which may differ from the requirements of United States and other country securities laws. Unless otherwise indicated, all ore reserve and mineral resource estimates included or incorporated by reference in this document have been, and will be, prepared in accordance with the JORC classification system of the Australasian Institute of Mining, and Metallurgy and Australian Institute of Geosciences.

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 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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Resource & Reserves: Tomingley + Peak Hill

Tomingley (TGP) – Mineral Resources

DEPOSIT	MEASURED	INDICATED	INFERRED	TOTAL
Top Cut	Tonnage Grade	Tonnage Grade	Tonnage Grade	Tonnage Grade Gold
2.5x2.5x5.0m model	(t) (g/t)	(t) (g/t)	(t) (g/t)	(t) (g/t) (koz)
Wyoming One	2,227,000 2.07	882,000 2.25	3,478,000 1.62	6,587,000 1.86 393.2
Wyoming Three	630,000 1.87	58,000 1.73	154,000 1.25	842,000 1.75 47.3
Caloma	2,047,750 2.04	440,050 1.71	1,371,620 1.36	3,859,420 1.76 218.5
Total	4,904,750 2.03	1,380,050 2.06	5,003,620 1.54	11,288,420 1.82 658.9

These Mineral Resources are based upon information compiled by Mr Richard Lewis MAusIMM (Lewis Mineral Resource Consultng Pty Ltd) who is a competent person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Richard Lewis consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The full details of methodology are given in the ASX Reports dated 25March 2009 and 2 October 2009 .

Tomingley (TGP) – Ore Reserves

DEPOSIT	PROVED	PROBABLE	TOTAL
	Tonnage Grade	Tonnage Grade	Tonnage Grade Ounces
	(t) (g/t)	(t) (g/t)	(t) (g/t)
Wyoming One	1,700,000 1.6	200,000 1.3	1,900,000 1.6 94,500
Wyoming Three	500,000 1.6	0 0.0	500,000 1.6 28,100
Caloma	1,100,000 2.3	100,000 1.7	1,200,000 2.2 86,500
Total	3,300,000 1.8	300,000 1.5	3,600,000 1.8 209,100

These Ore Reserves are based upon information compiled under the guidance of Mr Dean Basile MAusIMM (Mining One Pty Ltd) who is a competent person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Reserves and Resources are estimated at an effective A$1,540 per ounce gold price. Dean Basile consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Peak Hill – Mineral Resources

DEPOSIT	MEASURED	INDICATED	INFERRED	TOTAL
0.5g/t gold	Tonnage Grade	Tonnage Grade	Tonnage Grade	Tonnage Grade k Ounces
cut off	(t) (g/t)	(t) (g/t)	(t) (g/t)	(t) (g/t)
Proprietary		9,440,000 1.35	1,830,000 0.98	11,270,000 1.29 467.4
3.0g/t gold	Tonnage Grade	Tonnage Grade	Tonnage Grade	Tonnage Grade k Ounces
cut off	(t) (g/t)	(t) (g/t)	(t) (g/t)	(t) (g/t)
Proprietary P			810,000 4.40	810,000 4.40 114.6

These Mineral Resources are based upon information compiled by Mr Terry Ransted MAusIMM (Principal, Multi Metal Consultants Pty Ltd) who is a competent person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Terry Ransted consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The full details of methodology were given in the 2004 Annual Report.

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Resource & Reserves: Dubbo + Galwadgere

Dubbo Zirconia Project – Mineral Resources

Toongi	Tonnage	ZrO2	HfO2	**Nb2O5 **	**Ta2O5 **	Y2O3	REO	U3O8
Deposit	(Mt)	(%)	(%)	(%)	(%)	(%)	(%)	(%)
Measured	35.70	1.96	0.04	0.46	0.03	0.14	0.75	0.014
Inferred	37.50	1.96	0.04	0.46	0.03	0.14	0.75	0.014
Total	73.20	1.96	0.04	0.46	0.03	0.14	0.75	0.014

These Mineral Resources are based upon information compiled by Mr Terry Ransted MAusIMM (Principal, Multi Metal Consultants Pty Ltd) who is a competent person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Terry Ransted consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The full details of methodology were given in the 2004 Annual Report.

Dubbo Zirconia Project – Ore Reserves

	Toongi	Tonnage	ZrO2	HfO2	Nb2O5	Ta2O5	Y2O3	REO
	Deposit	(Mt)	(%)	(%)	(%)	(%)	(%)	(%)
	Proved	8.07	1.91	0.04	0.46	0.03	0.14	0.75
	Probable	27.86	1.93	0.04	0.46	0.03	0.14	0.74
	Total	35.93	1.93	0.04	0.46	0.03	0.14	0.74

These Ore Reserves are based upon information compiled by Mr Terry Ransted MAusIMM (Alkane Chief Geologist) who is a competent person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The reserves were calculated at a1.5% combined ZrO2+Nb2O5+Y2O3+REO cut off using costs and revenues defined in the notes in ASX Announcement of16 November 2011. Terry Ransted consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Wellington – Galwadgere – Mineral Resources

DEPOSIT MEASURED			INDICATED
0.5% Cu cut off Tonnage Grade	Grade	Tonnage	Grade	Grade
(t) (% Cu)	(g/t)	(t)	(% Cu)	(g/t)
Galwadgere - -		2,090,000	0.99	0.3
These Mineral Resources are based upon information compiled by Mr Terry Ransted MAusIMM (Principal, Multi Metal Consultants Pty Ltd) who is a competent person as defined in the 2004 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Terry Ransted consents to the inclusion in the report of the			matters based on his information in the form and context in
which it appears. The full details of methodology were given in the 2005 Annual Report

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McPhillamys Resource Statement

Moorilda – McPhillamys – Mineral Resources

DEPOSIT	INDICATED	INFERRED	TOTAL	TOTAL
McPhillamys	Tonnage Grade Grade	Tonnage Grade Grade	Tonnage Grade Grade k Ounces		tonnes
0.3g/t Au cut-off	(t) (g/t) % Cu	(t) (g/t) % Cu	(t) (g/t) % Cu gold		copper
Inner Ore Zone	51,650,000 1.10 0.07	23,504,000 1.19 0.07	75,154,000 1.13 0.07	2,723.6	55,091
Outer Ore Envelope	9,624,000 0.44 0.04	7,167,000 0.43 0.03	16,791,000 0.43 0.03	234.7	5,729
Total	61,274,000 0.99 0.07	30,671,000 1.01 0.06	91,945,000 1.00 0.07	2,958.3	60,820

DEPOSIT	INDICATED	INFERRED	TOTAL	TOTAL
McPhillamys	Tonnage Grade Grade	Tonnage Grade Grade	Tonnage Grade Grade	k Ounces	tonnes
0.5g/t Au cut-off	(t) (g/t) % Cu	(t) (g/t) % Cu	(t) (g/t) % Cu	gold	copper
Inner Ore Zone	41,260,000 1.27 0.08	16,097,000 1.57 0.09	57,357,000 1.36 0.08	2,499.9	46,933
Outer Ore Envelope	2,169,000 0.69 0.03	1,338,000 0.62 0.03	3,507,000 0.66 0.03	74.6	1,170
Total	43,429,000 1.24 0.08	17,435,000 1.50 0.08	60,864,000 1.32 0.08	2,574.5	48,104
These Mineral Resources are based upon information compiled by Mr Richard Lewis MAusIMM (Lewis Mineral Resource Consulting Pty Ltd) who is a competent person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Richard Lewis consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The full details of methodology were given in the ASX Announcement 5 July 2010. Totals may not tally due to rounding.0

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