Alkane Resources — Interim / Quarterly Report 2008

Oct 30, 2007

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B Mining exploration entity quarterly report

Name of entity

ALKANE RESOURCES LTD

ABN 35 000 689 216

Quarter ended ("current quarter") 30 September 2007

Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (mine rehabilitation & maintenance) Other (Commercial Ready Grant) Net operating cash flows	Current Quarter $A'000	Year to date (9 Months) $A'000
	32 (714) - - (248) - 60 - - (58) 77	80 (2528) - - (721) - 230 - - (149) 683
	(851)	(2405)
Cash flows related to investing activities 1.8 Payment for purchases of (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (Changes in security deposits) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (32) - - - - - (6)	- - (57) - - - - 248 251
	(38)	442
	(889)	(1963)

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net Financing Cash Flows	(889)	(1963)
	- - - - - -	88 - - - - (2)
	-	86
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to Item 1.20 1.22 Cash at end of quarter	(889) 4036 -	(1877) 5024 -
	3147	3147

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		176
		-
	Explanation necessaryfor an understandingof the transactions
	Payments to companies associated with directors for: Directors fees/corporate consulting fees Administration/accounting fees(paid to entity related to director of subsidiaries) Geological consulting fees	$34 $21 $121

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	N/A
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhas an interest
	No expenditure on the Miranda/McDonoughs Lookout/Leinster Downs was reported by Jubilee Mines NL. Under the terms of the farm in agreement Jubilee has earned 75% of the joint venture and is proceeding to fund further exploration. Expenditure on the Orange District Exploration Joint Venture by Newmont Australia Limited totalled $105,367 for thequarter.

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

add notes as necessary for an understanding of the position

	3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A'000	Amount used $A'000
		-	-
		-	-

	Estimated cash outlays for next quarter 4.1 Exploration and evaluation 4.2 Development TOTAL	$A'000
		1200
		-
		1200

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the statement of cash flows) to the related items in the accounts is follows.

• 5.1 Cash on hand and at bank

• 5.2 Deposits at call

• 5.3 Bank overdraft

• 5.4 Other * investment securities of 3 months or less

Total: cash at end of quarter (item 1.22)

	Current Quarter	Previous Quarter
	$A'000	$A'000
	873	1302
	494	656
	-	-
	1780	2078
	3147	4036

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement Reference	Nature of Interest [note (4)]	Interest at Beginning of Quarter	Interest at End of Quarter

See tenement schedule for details

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1Preferences securities (description) 7.2 Changes during quarter (a) increases through issues (b) decreases through returns of capital, buybacks, redemptions
7.3Ordinary securities 7.4 Changes during quarter (a) increases through issues (b) decreases through returns of capital, buybacks	200,893,468	200,893,468
7.5Convertible debt securities (description) 7.6 Changes during quarter (a) increases through issues (b) decreases through securities matured, converted
7.7Options Consultants/staff–ALKAK Directors-ALKAS Directors-ALKAU Consulants/staff-ALKAW Consultants/staff-ALKAY 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	975,000 3,000,000 3,000,000 850,000 1,200,000	- - - - -	Exercise price 45 25 30 25 30	Expiry date 29/05/2008 30/09/2008 30/09/2009 30/09/2008 30/09/2009
7.11Debentures (totals only)
7.12Unsecured notes (totals only)

Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).

• 2 This statement does ~~/does not*~~ (delete one) give a true and fair view of the matters disclosed.

Sign here: [signed L A Colless] .................................. Date: 31 October 2007 ................. ( ~~Director/~~ Company Secretary)

Print name: L A COLLESS ..........................................

Notes

• 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address the topic, the Australian standard on that topic (if any) must be complied with.

Appendix 5B Mining exploration entity quarterly report

ITEM 6.1 & 6.2 Schedule of mining tenements –as at 31 October 2007

Prospect	Tenement	Interest	Nature of interest
Peak Hill, NSW	GL 5884 (Act 1904)	100%	Equity
	ML 6036	100%	Equity
	ML 6042	100%	Equity
	ML 6277	100%	Equity
	ML 6310	100%	Equity
	ML 6389	100%	Equity
	ML 6406	100%	Equity
	ML 1351	100%	Equity
	ML 1364	100%	Equity
	MLA 79 Orange	100%	Equity (application)
	ML 1479	100%	Equity
	EL6319	100%	Equity
Dubbo, NSW	EL 5548	100%	Equity
	MLA 183 Orange	100%	Equity (application)
Orange-Molong, NSW	EL 6025	100%	Equity through subsidiary
			Newmont earning 51%
Borenore	EL 6091	100%	Equity through subsidiary
			Newmont earning 51%
Wellington, NSW	EL 6320	100%	Equity
	EL6700	100%	Equity
Moorilda	EL 5760	100%	Equity through subsidiary
			Newmont earning 51%
	EL 6111	100%	Equity through subsidiary
			Newmont earning 51%
Tomingley	EL 5675	100%	Equity
	EL 5830	100%	Equity
	EL 5942	100%	Equity
Wyanga	EL6085	100%	Equity
Cudal	EL 4155	100%	Equity
	EL 5851	100%	Equity
	ELA3051Or	100%	Equity
Bodangora	EL 4022	100%	Equity
Nullagine, WA	EL 46/522	0%	60% retained interest in diamond potential
	EL 46/523	0%	60% retained interest in diamond potential
	EL 46/524	0%	60%retainedinterestindiamond potential
Miranda Well, WA	M36/303	25%	Equity-JBM holds 75%
McDonough Lookout, WA	M36/329 & 330	25%	Equity-JBM holds 75%
Leinster Downs, WA	E 36/201	25%	Equity – JBM holds 75%
	M(A) 36/477-480	25%	Equity - JBM holds 75%
	M(A) 36 550	25%	JBM holds 75%
	M(A) 36/571	25%	JBM holds 75%
	M(A) 36/572	25%	JBM holds 75%
	M(A) 36/622	25%	JBM holds 75%
	P 36/1371	25%	Equity – JBM holds 75%
	P 36/1372	25%	Equity - JBM holds 75%
	P(A) 36/1601-1605	25%	Equity-JBM holds 75%

BCI	BC Iron Limited
JBM	Jubilee Mines NL
Newmont	Newmont Australia Ltd