Alkane Resources — Interim / Quarterly Report 2008

Jul 27, 2008

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 June 2008

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 (6 Months) $A'000
	20 (2724) - - (371) - 238 - - (32) 30	35 (4469) - - (643) - 312 - - (61) 362
	(2839)	(4464)
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)	- - (107) - - - - (19)	- - (211) - - - - (23)
	(126)	(234)
	(2965)	(4698)

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 (Costs of issues) Net Financing Cash Flows	(2965)	(4698)
	187 - - - - (19)	8438 - - - - (484)
	168	7954
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	(2797) 12534 -	3256 6481 -
	9737	9737

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
		278
		-
	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	$78 $38 $162

Non-cash financing and investing activities

• 2.1 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

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has 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 $101,493 for the quarter.

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
		1500
		-
		1500

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
	853	839
	816	997
	-	-
	8068	10698
	9737	12534

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
	ELA 3443		100%	0%
	EL 7139 ELA 3488	Equity on grant of ELA 3441 Application	100% 0%	100% 100%

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	242,422,162	242,422,162
	750,000	750,000	25	25
7.5Convertible debt securities (description) 7.6 Changes during quarter (a) increases through issues (b) decreases through securities matured, converted
7.7Options Directors-ALKAS Directors-ALKAU Consulants/staff-ALKAW Consultants/staff-ALKAY 7.8 Issued during quarter Consultants/staff-ALKAY 7.9 Exercised during quarter Directors-ALKAS Consultants/staff ALKAW 7.10 Expired during quarter Consultants/staff–ALKAK	2,000,000 3,000,000 600,000 1,400,000	- - - -	Exercise price 25 30 25 30	Expiry date 30/09/2008 30/09/2009 30/09/2008 30/09/2009
	200,000	-	30	30/09/2009
	500,000 250,000	- -	25 25	30/09/2008 30/09/2008
	975,000	-	45	29/05/2008
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: 28 July 2008 ...................... ( ~~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 28 July 2008

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	EL 6085	100%	Equity
	EL7139	100%	Equity
Cudal	EL7020	100%	Equity
Bodangora	EL 4022	100%	Equity
Calula	ELA3488	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	M 36/622	25%	JBM holds 75%
	P36/1601-1605	25%	Equity-JBM holds 75%

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