Alkane Resources — Capital/Financing Update 2011

Apr 19, 2011

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----- Start of picture text ----- RESOURCES LTDABN 35 000 689 216----- End of picture text -----

ASX ANNOUNCEMENT – 20 APRIL 2011

Corporate Profile

Alkane Board

J. S. F. Dunlop (Chairman) D. I. Chalmers (Managing Dir)

MANDATE TO ARRANGE AND UNDERWRITE A PROJECT LOAN AND HEDGING FACILITY FOR THE TOMINGLEY GOLD PROJECT

The Directors of Alkane Resources Ltd (ASX: ALK, OTCQX: ANLKY) are pleased to advise that the Company has entered into a mandate for Credit Suisse ( CS ) to exclusively act as arranger and underwriter in respect of a Project Loan Facility and associated Gold Hedging Facility for use in the construction, start-up and operation of the Company’s Tomingley Gold Project in the Central West of New South Wales.

This financing will indicatively comprise of a Project Loan Facility of up to A$45 million and a Gold Hedging Facility of up to 163,000 ounces .

The Tomingley Gold Project ( TGP) is based on three gold deposits located 14 kilometres north of the Company’s Peak Hill Gold Mine. Identified Mineral Resources total 689,000 ounces of gold ( ASX Reports dated 25March 2009 and 2 October 2009) and a Definitive Feasibility Study (DFS) was completed late 2010 ( ASX Report dated 13 December 2010) .

A. D. Lethlean (Director)

I. J. Gandel (Director)

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

Contact

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

12 month share price range

A$2.73 - $0.23

Market Cap 19 April 2011

~A$600 million

The base case of the DFS incorporated the current ore reserve and anticipated additional recoverable mineral resources from the open pits and underground mining over a project life of approximately 7.5 years and will recover 369,261 ounces.

The Project Loan Facility and Gold Hedging Facility mandate is subject to a number of conditions precedent and fees, and will expire on 31 December 2011 if a binding Project Loan Facility is not executed.

Noah’s Rule Pty Ltd continues to advise the Company on the appropriate financing strategies for the development of the TGP.

Importantly, the TGP loan facility will not prevent the Dubbo Zirconia Project (DZP) being separately financed, nor will the DZP be subject to the security provisions of the TGP facility.

ASX Code: ALK

269 million shares

OTC/QX Code: ANLKY ADR ratio 1:10

31 March 2011 Cash

Cash ~A $21.0 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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Unless otherwise advised above, the information in this report that relates to exploration results, mineral resources and ore reserves is based on information compiled by Mr D I Chalmers, FAusIMM, FAIG, (director of the Company who 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 a 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 this report of the matters based on his information in the form and context in which it appears

BACKGROUND

Alkane is a multi commodity explorer and miner with its operations focussed in the Central West of New South Wales , centred about 400 kilometres 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. Other than the TGP, project developments include:

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 2011.

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 significant gold deposit at McPhillamys within the Moorilda Project . An initial resource of Indicated plus Inferred resources containing 2.96 million ounces of gold and 60,000 tonnes of copper has been defined (full details ASX announcement of 5 July 2010) . Newmont are proceeding to complete a Bankable Feasibility Study for the development of the deposit.

Elsewhere within the region, Alkane has defined a 2 million tonne 1.00% copper Indicated Resource (details 2005 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. New exploration targets have been identified at several other locations.

In Western Australia the Company hold a diluting 23% residual interest in a nickel sulphide joint venture with Xstrata Nickel (Jubilee) near Leinster .

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Alkane Resources Ltd – ASX Announcement

21 April 2011