Alkane Resources — Interim / Quarterly Report 2011

Jul 27, 2011

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B Mining exploration entity quarterly report

Name of entity

ALKANE RESOURCES LTD

ABN35 000 689 216	Quarter ended("currentquarter")	Quarter ended("currentquarter")
	30 June 2011
Consolidated statement of cash flowsCash flows related to operating activities1.1Receipts from product sales and related debtors1.2Payments for(a) exploration and evaluation(b) development(c) production(d) administration1.3Dividends received1.4Interest and other items of a similar nature received1.5Interest and other costs of finance paid1.6Income taxes paid1.7Other (mine rehabilitation & maintenance)Other (Commercial Ready Grant)OtherNet operating cash flows	Current Quarter$A'000	Year to date(6 Months)$A'000
	4(2,939)(20)-(775)-131--(32)-(50)	10(4,657)(20)-(1,117)-173--(71)-(112)
	(3,681)	(5,794)
Cash flows related to investing activities1.8Payment for purchases of(a) prospects(b) equity investments(c) other fixed assets1.9Proceeds from sale of(a) prospects(b) equity investments(c) other fixed assets1.10Loans to other entities1.11Loans repaid by other entities1.12Other (provide details of material)Net investing cash flows1.13Total operating and investing cash flows (carried forward)	--(77)--3-(5)	--(123)--3-(10)
	(79)	(130)
	(3,760)	(5,924)

Appendix 5B Mining exploration entity quarterly report

1.13Total operating and investing cash flows (brought forward)Cash flows related to financing activities1.14Proceeds from issues of shares, options, etc.1.15Proceeds from sale of forfeited shares1.16Proceeds from borrowings1.17Repayment of borrowings1.18Dividends paid1.19Other – cost of share issuesNet Financing Cash Flows	(3,760)	(5,924)
	------	21,000----(1,077)
	-	19,923
Net increase (decrease) in cash held1.20Cash at beginning of quarter/year to date1.21Exchange rate adjustments to Item 1.201.22Cash at end of quarter	(3,760)22,051-	13,9994,292-
	18,291	18,291

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

1.231.24	Aggregate amount of payments to the parties included in item 1.2Aggregate amount of loans to the parties included in item 1.10	Current quarter$A'000
		308
		-
Explanation necessaryfor an understandingof the transactionsPayments to companies associated with directors for:$ A,000Directors fees/corporate consulting fees$116Administration/accounting fees(paid to entity related to director of subsidiaries)$43Geological consulting fees$149Non-cash financing and investing activities2.1Details of financing and investing transactions which have had a material effect on consolidated assets andliabilities but did not involve cash flowsN/A2.2Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interestNo expenditures on the Miranda/McDonoughs Lookout/Leinster Downs have been reported by Xstrata NickelAustralasia for the June quarter.Expenditure of $72,145 been reported on the Orange District Exploration Joint Venture by Newmont AustraliaLimited for the three months to 30 June 2011.	Explanation necessaryfor an understandingof the transactions
	Payments to companies associated with directors for:$ A,000Directors fees/corporate consulting fees$116Administration/accounting fees(paid to entity related to director of subsidiaries)$43Geological consulting fees$149
	N/A
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	No expenditures on the Miranda/McDonoughs Lookout/Leinster Downs have been reported by Xstrata NickelAustralasia for the June quarter.Expenditure of $72,145 been reported on the Orange District Exploration Joint Venture by Newmont AustraliaLimited for the three months to 30 June 2011.

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

add notes as necessary for an understanding of the position

	3.1Loan facilities3.2Credit standby arrangements	Amount available$A'000	Amount used$A'000
		-	-
		-	-

Estimated cash outflows for next quarter

• $A'000

• 4.1 Exploration and evaluation 3,100 4.2 Development - 4.3 Production - 4.4 Administration 750 TOTAL 3,850

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (as shown in thestatement of cash flows) to the related items in the accounts is asfollows.5.1Cash on hand and at bank5.2Deposits at call5.3Bank overdraft5.4Other* term deposits of less than 12 monthsTotal: cash at end of quarter(item 1.22)	Current Quarter$A'000	Previous Quarter$A'000
		42	450
		699	1,301
		-	-
		17,550	20,300
		18,291	22,051

Changes in interests in mining tenements

6.1Interests in miningtenements relinquished,reduced or lapsed6.2Interests in miningtenements acquired orincreased	6.1Interests in miningtenements relinquished,reduced or lapsed6.2Interests in miningtenements acquired orincreased	Tenement	Tenement	Nature of Interest	Nature of Interest	Interest at	Interest at Endof Quarter	Interest at Endof Quarter
			Reference	[note (2)]		Beginning ofQuarter	of Qu
	nterests in miningenements relinquished,educed or lapsed
	nterests in miningid
		M	LA 399	Application		0%	100	%
	enements acqure orncreased
	nement schedule for det		ails

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	Issuepricepersecurity (see note3) (cents)	Amount paid up persecurity (see note 3)(cents)
7.1Preferences+securities(description)7.2 Changes during quarter(a) increases through issues(b)decreasesthroughreturns of capital, buy-backs, redemptions
7.3+Ordinary securities7.4 Changes during quarter(a) increases throughissues(b) decreases throughreturns of capital, buy-backs	269,028,158	269,028,158
7.5+Convertible debtsecurities(description)7.6 Changes during quarter(a) increases through issues(b)decreasesthroughsecuritiesmatured,converted
7.7Options(description and converstoinfactor)7.8 Issued during quarter7.9 Exercised during quarter7.10 Expired during quarter			Exercise price	Expiry date
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 Act or other standards acceptable to ASX (see note 5).

• 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 2011 ....................... ( 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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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 2011

ITEM 6.1 & 6.2 Schedule of mining tenements –as at 28 July 2011	ITEM 6.1 & 6.2 Schedule of mining tenements –as at 28 July 2011	ITEM 6.1 & 6.2 Schedule of mining tenements –as at 28 July 2011
ProspectTenementInterestNature of interest
Peak Hill, NSWGL 5884 (Act 1904)100%EquityML 6036100%EquityML 6042100%EquityML 6277100%EquityML 6310100%EquityML 6389100%EquityML 6406100%EquityML 1351100%EquityML 1364100%EquityMLA 79 Orange100%Equity (application)ML 1479100%EquityEL6319100%Equity
Dubbo, NSWEL 5548 100%Equity through subsidiaryEL 7631100%Equity through subsidiaryMLA 183 Orange100%Equity throughsubsidiary (application)
	EL 7631100%Equity through subsidiaryMLA 183 Orange100%Equity throughsubsidiary (application)
Orange-Borenor	Molong, NSWEL 602549%Equity through subsidiaryNewmont 51% with the right to earn a furtheEL 609149%Equity through subsidiaryNewmont 51% withtheright to earnafurth	er 24%er 24%
Welling	ton, NSWEL 6320100%Equity
MoorildaEL 576049%Equity through subsidiaryNewmont 51% with the right to earn a further 24%EL 611149%Equity through subsidiaryNewmont 51% withtheright to earnafurther 24%	aEL 576049%Equity through subsidiary
TomingleyEL 5675100%EquityEL 5830100%EquityEL 5942100%Equity EL 6085100%EquityEL 7139 100%EquityMLA399100%Equity throughsubsidiary (application)
CudalEL7020100%Equity
BodangoraEL 4022100%Equity
CalulaEL 7235100%EquityEL7383100%Equity
Diamond CreekEL 7456100%EquityEL7583100%Equity
Nullagine, WAEL 46/5220%60% retained interest in diamond potentialEL 46/5230%60% retained interest in diamond potentialEL 46/5240%60%retainedinterestindiamond potential
Miranda Well, WAM36/30325%Equity- XNA holds 75%
McDonough Lookout, WAM36/329 & 33025%Equity- XNA holds 75%
Leinster Downs, WAM 36/62225%Equity - XNA holds 75%P36/1601-160525%Equity- XNA holds 75%

XNA Xstrata Nickel Australia Newmont Newmont Australia Ltd