Alkane Resources — Capital/Financing Update 2008

May 28, 2008

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RESOURCES LTD
ABN 35 000 689 216
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ASX ANNOUNCEMENT – 29 May 2008

Corporate Profile

Alkane Board

CALOMA RESOURCE DRILLING COMPLETED

• The major resource definition drilling program at Caloma has been completed with 186 RC holes totalling 22,034 metres. Further extension drilling will be scheduled once the development has been approved.

J. S. F. Dunlop (Chairman) D. I. Chalmers (Managing Dir) A. D. Lethlean (Director) I. J. Gandel (Director)

I. R. Cornelius (Director)

L A Colless (Joint Secretary) K E Brown (Joint Secretary)

Contact

• The resource model should be completed by the end of September and will be incorporated into the TGP Definitive Feasibility Study.

• Results for another 28 holes have been received and results for the remaining 37 RC holes and 19 core holes will be released as they become available.

Ian Chalmers Managing Director 96 Parry Street PERTH WA 6000

Telephone +61 8 9328 9411 Facsimile +61 8 9227 6011 Email ichalmers@alkane.com.au Web – www.alkane.com.au

• Selected results include:

12 month share price range

PE 347 16 metres grading 3.10g/t gold from 36 metres including 8 metres grading 5.62g/t gold from 37 metres PE 348 19 metres grading 2.65g/t gold from 41 metres including 6 metres grading 6.57g/t gold from 41 metres PE 350 13 metres grading 2.19g/t gold from 50 metres including 4 metres grading 3.88g/t gold from 55 metres PE 365 15 metres grading 2.14g/t gold from 33 metres including 6 metres grading 4.37g/t gold from 42 metres PE 368 10 metres grading 2.26g/t gold from 160 metres including 6 metres grading 3.28g/t gold from 160 metres PE 373 4 metres grading 6.04g/t gold from 80 metres PE 374 5 metres grading 10.26g/t gold from 82 metres

A$0.515 - $0.215

Market Cap 28 May 08

~A$100 million

ASX Code: ALK

241.6 million shares (Jan 08)

March 2008 Cash

~ $12.3 million

No debt

Media Relations

Westbrook Communications Level 1, 17 Castlereagh Street SYDNEY NSW 2000

Telephone +61 2 9231 0922 Facsimile +61 2 9231 0131 Web – www.westbrookfin.com.au

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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The major reverse circulation (RC) and diamond core resource definition drilling program at Caloma, within the Tomingley Gold Project (TGP) has been completed. A total of 186 RC holes (PE 215 – 410) for 22,034 metres were drilled. The drilling program focussed on a 400 metre long central section of the 1,000 metre north-south trending Wyoming style feldspar porphyry host. Results have now been received for another 28 holes (PE 347 – 374, figure 1) and are summarised in Table 1.

The RC program was completed on a 20 metre by 20 metre pattern to ensure the definition of a Measured and Indicated Resource to a depth of about 150 metres. Gold mineralisation is known to extend further to the north and south within the porphyry host but it was decided to focus on the central section to compile the resource and open pit mining model as soon as possible. This will enable completion of the feasibility study by early 2009, proceeding towards development.

Prior to final mine planning, further drilling would be scheduled to determine possible north and south extensions to the Caloma deposit.

Ten core holes (PE 253D – 257D, PE 271D – 273D, PE 289D and PE 292D – 293D) totalling 2,571 metres have been drilled at Caloma and nine core holes (WY 840D – 848D) totalling 3,720 metres have also been completed at the Wyoming One and Wyoming Three deposits. The core drilling was designed to provide confirmatory geological information, and samples for metallurgical testing and geotechnical data. No core results are available to date.

The recent Caloma drilling has confirmed that multiple mineralised structures exist within the main feldspar porphyry host which is 80 to 100 metres in width and a robust geological model has been developed. It is apparent that most of the mineralised structures within the porphyry have an approximate northerly orientation, with a shallow westerly dip. These structures range in width from a few metres to in excess of 20 metres and appear to extend across the full width of the porphyry host. Intersecting structures, or structures intersecting lithological contacts, occasionally generate substantial intercepts. East-west, and apparently vertical, cross cutting dolerite dykes displace the mineralisation at irregular intervals (figure 1). The drilling has also demonstrated that the mineralised structures project through the eastern contact of the porphyry into the volcaniclastic sediments and have expanded the resource potential into that area.

Deeper RC and core drilling have also located an apparently new mineralised zone at depth within what appears to be lithologies footwall (east) to the porphyry. This structure is continuous over several sections at a depth of around 200 metres with an average width of about 10 metres, and in core displays extensive alteration, quartz veining and coarse pyrite/arsenopyrite, with occasional visible gold. Few results from this zone are available at this time.

Feasibility Study

Project infrastructure and site layout studies continue and initial metallurgical work on the Caloma deposit is underway. Geotechnical studies for the open pit development and site infrastructure have also commenced.

The overall timetable for completion of the DFS has been governed by the completion of the Caloma resource model, mine planning and scheduling. Finalisation of the study is now anticipated by early 2009.

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 report of the matters based on his information in the form and context in which it appears.

2/5

Alkane Resources Ltd – ASX Announcement

29 May 2008

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- Table 1: Caloma results greater than 1.0g/t gold PE 347 PE 374 @ 29 May 08

Hole No	East	North	RL (m)	**Azimuth **	Inclin	Intcpt (m)	Grade (g/t Au)	Interval (m)	EOH (m)	Comments
PE347	**614900 **	**6394175 **	~270	**090° **	60°	16	3.10	**36 –52 **	60
**incl **						8	5.62	37 - 45
PE348	**614920 **	**6394200 **	~270	**090° **	60°	19	2.65	41 –60	60
**incl **						6	**6.57 **	41 - 47
PE349	**614680 **	**6393940 **	~270	**090° **	60°	3	**1.04 **	72 – 75	162
also						5	1.27	**99 – 104 **
also						*6 **	2.35	**126 – 132 **
also						2	1.16	151 - 153
PE350	**614900 **	**6394200 **	~270	**090° **	60°	*3 **	1.27	36 –39	72
also						13	2.19	50 -63
**incl **						4	3.88	55 -59
**PE351 **	**614880 **	**6394200 **	~270	**090° **	60°	5	1.65	65 – 70	**84 **
**PE352 **	**614860 **	**6394200 **	~270	**090° **	60°	*3 **	**4.54 **	30 –33	102
PE354	**614830 **	6394195	~270	090°	60°	9*	1.05	75 – 84	103
PE355	**614690 **	**6393960 **	~270	**090° **	60°	4	1.89	108 – 112	189
also						3	2.70	120 - 123
also						1	2.10	126 - 127
also						2	1.99	145 - 147
also						21	1.41	**160 - 181 **
**incl **						3	2.66	175 – 178
PE356	**614790 **	**6394195 **	~270	**090° **	60°	8	1.86	81 –89	93
PE359	**614830 **	**6394155 **	~270	**090° **	60°	*3 **	1.09	15 – 18	45
also						*3 **	2.09	42 - 45
**PE362 **	**614770 **	**6393960 **	~270	**090° **	60°	3	1.58	93 –96	114
PE363	**614820 **	**6393980 **	~270	**090° **	60°	2	2.49	110 – 112	120
PE364	614800	6393980	~270	090°	60°	*3 **	1.45	145 – 148	120
PE365	**614780 **	**6393980 **	~270	**090° **	60°	15	2.14	33 – 48	102
**incl **						*6 **	**4.37 **	42 - 48
**PE367 **	**614740 **	**6393980 **	~270	**090° **	60°	5	2.55	42 – 47	144
**incl **						2	5.19	43 - 44
PE368	**614850 **	**6394155 **	~270	**090° **	60°	*3 **	**1.92 **	24 – 27	174
also						4*	2.28	57 - 61
also						10	2.26	160 - 170
**incl **						6	3.28	160 – 166
PE369	**614720 **	**6393980 **	~270	**090° **	60°	*3 **	1.65	**59 –62 **	162
PE370	**614700 **	**6393980 **	~270	**090° **	60°	2	1.46	72 – 74	180
PE371	**614810 **	**6394165 **	~270	**090° **	60°	*6 **	2.73	**45 –51 **	114
also						5	1.57	70 - 75
PE372	**614790 **	**6394160 **	~270	**090° **	60°	3	4.76	45 – 48	135
also						4	1.53	85 –89
PE373	**614770 **	**6394160 **	~270	**090° **	60°	4	**6.04 **	**80 –84 **	135
**incl **						1	18.20	**80 –81 **
also						7	1.89	102 - 109
PE374	614680	6393980	~270	095°	60°	7	1.25	55 – 62	162
also						4	1.09	66 - 70
also						5*	10.26	**82 -87 **
also						4	1.30	142 - 146

Gold analysis by 30g fire assay of 1 metre riffle split samples, or *rarely 3 metre composite samples. True widths are approx 90 - 95%.

3/5

Alkane Resources Ltd – ASX Announcement 29 May 2008

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BACKGROUND

Alkane is a multi commodity explorer and miner with its operations focussed in the Central West of New South Wales , centred about 400km northwest of Sydney. Over several years, including experience in developing the Peak Hill Gold Mine, Alkane has built a substantial resource base and is proceeding towards several developments:

The Tomingley Gold Project currently has a 606,000 ounce gold resource within the Wyoming deposits , of which 75% is in the Measured and Indicated categories (full details 2007 Annual Report). The recent discovery at Caloma could add significantly to the resource base and a substantial drilling program has been completed to define this resource. A feasibility study for the development of the project is anticipated to be completed early 2009.

The Dubbo Zirconia Project is based upon a world class resource of the metals zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements. The deposit also contains significant uranium. Over several years Alkane has developed a flow sheet which can recover a variety of products which have expanding applications in electronics, ceramics, catalysts, special alloys and glasses, fuel cells, special batteries and permanent magnets, nuclear power and as environmental drying agents. Following a $3.3 million Commercial Ready Grant from AusIndustry in 2006, the feasibility study was reactivated. The study includes the construction and operation of a Demonstration Pilot Plant, and a development commitment is anticipated mid 2009.

Near Orange, the Company has a joint venture ( ODEJV ) with Newmont, one of the world’s largest gold miners, which resulted in the discovery in 2006 of a potentially significant gold deposit at McPhillamys within the Moorilda Project . This discovery includes intersections of 123 metres grading 1.96g/t gold and 77 metres at 1.65g/t gold within a 300 metre by 200 metre mineralised zone. Late in 2007 two deep core holes produced substantial gold intercepts in KPD002 of 225 metres grading 1.16g/t gold and KPD003 with 263 metres at 1.30g/t gold, and within both holes there were several higher grade intervals (e.g. KPD002 51 metres at 1.67g/t gold and 52 metres at 1.55g/t gold; KPD003 26 metres at 3.75g/t gold and 48.7 metres at 2.74g/t gold)

Elsewhere within the region, Alkane has defined a 2 million tonne 1.00% copper Indicated Resource (details 2007 Annual Report) which is being reviewed for its development potential at Galwadgere within the Wellington Project , and several other advanced exploration projects with encouraging drill intercepts.

In Western Australia the Company holds 9 million shares (15.15%) of listed iron ore explorer BC Iron Limited and a diluting 25% residual interest in a nickel sulphide joint venture with Xtrata Nickel (Jubilee) near Leinster .

4/5

Alkane Resources Ltd – ASX Announcement 29 May 2008

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