Alara Resources : Appointment of new Managing Director and Third Qrt Activity

Quarterly Activities Report

March Quarter 2022

ASX Code: AUQ

DIRECTORS Stephen Gethin

Non-Executive Chairman Atmavireshwar Sthapak

Managing Director Vikas Jain

Non-Executive Director Sanjeev Kumar

Non-Executive Director Devaki Khimji

Non-Executive Director Farrokh Masani

Alternate Director for Devaki Khimji

COMPANY SECRETARY Dinesh Aggarwal

CHIEF FINANCIAL OFFICER Dinesh Aggarwal

CONTACT DETAILS

Suite 1.02, 110 Erindale Road, Balcatta WA 6021, Australia

PO Box 963

Balcatta WA 6914

Telephone Facsimile

[phone] [phone]

www.alararesources.comABN: 27 122 892 719

29 April 2022

Key Highlights

•  The construction stage of Alara's Al Wash-hi-Majaza Copper-Gold Joint Venture (JV) Project continued during the March 2022 quarter (Q3 FY22).

•  License renewals and license applications for other Alara Omani projects continued to be progressed in the Company's Q3 FY22.

•  Alara is on the final list for a license tender for the Khnaiguiyah Zinc-Copper Project, currently being undertaken by the Saudi Arabian Ministry of Energy and Mineral Resources.

•  Madame Devaki Khimji, the Managing Director of Oman-based Al Tasnim Group, was appointed to the Alara Board as a Non-Executive Director during the reporting period.

Alara Resources Limited (ASX: AUQ) ("Alara" or "the Company"), a base and precious metals explorer and developer with projects in Oman, is pleased to provide its Quarterly Activities Report for the quarter ended 31 March 2022 (Q3 FY22) along with the following financial and operational update.

Al Wash-hi-Majaza Copper-Gold JV Project now well progressed The Al Wash-hi-Majaza Copper-Gold Joint Venture (JV) Project (Project) moved materially closer to full production in Alara's Q3 FY22. Key milestones achieved in the reporting period included:

•  The completion of key project construction components, including the multi-purpose accommodation village.

•  Alara's JV partner Al Hadeetha Resources LLC (AHRL) signing an agreement with Oman Water and Waste-Water Services Company SAOC, which secured process water supply for the Project.

•  The placement of a number of Project equipment and construction purchase orders. The first equipment is scheduled to arrive on site in Q4 FY22.

Quarterly Activities Report

March Quarter 2022

ASX Code: AUQ

DIRECTORS Stephen Gethin

Non-Executive Chairman Atmavireshwar Sthapak

Managing Director Vikas Jain

Non-Executive Director Sanjeev Kumar

Non-Executive Director Devaki Khimji

Non- Executive Director Farrokh Masani

Alternate Director for Devaki Khimji

COMPANY SECRETARY Dinesh Aggarwal

CHIEF FINANCIAL OFFICER Dinesh AggarwalCONTACT DETAILS

Suite 1.02, 110 Erindale Road, Balcatta WA 6021, Australia

PO Box 963

Balcatta WA 6914

Telephone Facsimile

[phone] [phone]

www.alararesources.comABN: 27 122 892 719

Licensing requirements for other Oman-based projects progressed Alara continued to work towards delivery of license applications and renewals for its other Oman-based projects in the reporting period:

•  Daris Copper-Gold Project (Oman): The Omani Ministry of Energy and Minerals continued to review the application for the Daris East mining licence.

•  Awtad Copper-Gold Project (Oman): An application to renew the exploration licence remained under consideration by the Ministry of Energy and Minerals.

Alara reaches final stage of tender for Saudi exploration license Alara entered the third and final stage of a selection process for the award of an Exploration License over a 353 km2 area in the Kingdom of Saudi Arabia (KSA) in the Company's Q3 FY22.

The license area for this project, called the Khnaiguiyah Zinc-Copper Project, includes Alara's former Khnaiguiyah zinc-copper project. The Company holds a clear advantage over rival bidders in the tender, by virtue of its earlier successful completion of a Definitive Feasibility Study over the former Khnaiguiyah project area.

Appointment of Non-Executive Director and Alternate Director Madame Devaki Khimji was appointed to the Alara board as a non-executive director during the reporting period. Mdme Khimji is also the Managing Director of Oman-based Al Tasnim Group (Al Tasnim). Her highly regarded management and entrepreneurial skills will be a great asset to Alara as it continues construction of the Al Wash-hi-Majaza copper-gold mine infrastructure.

Mdme Devaki has appointed Mr Farrokh J. Masani, Executive Director of Al Tasnim, as her alternate director, with authority to attend board meetings on her behalf. Mr Masani is a seasoned entrepreneur in the Indian Construction Industry, with an excellent track record of creating and growing varied businesses in a competitive environment. His technical and commercial expertise encompass a wide range of specialisations such as civil, HVAC, plumbing, firefighting, electrical system design and project management.

Quarterly Activities Report

March Quarter 2022

ASX Code: AUQ

DIRECTORS Stephen Gethin

Non-Executive Chairman Atmavireshwar Sthapak

Managing Director Vikas Jain

Non-Executive Director Sanjeev Kumar

Non-Executive Director Devaki Khimji

Non- Executive Director Farrokh Masani

Alternate Director for Devaki Khimji

COMPANY SECRETARY Dinesh Aggarwal

CHIEF FINANCIAL OFFICER Dinesh AggarwalCONTACT DETAILS

Suite 1.02, 110 Erindale Road, Balcatta WA 6021, Australia

PO Box 963

Balcatta WA 6914

Telephone Facsimile

[phone] [phone]

www.alararesources.comABN: 27 122 892 719

Alara Resources Managing Director Atmavireshwar Sthapak said: "We are thrilled with the continued progress made in the development of the Al Wash-hi-Majaza JV Copper-Gold Project. The project milestones met over the March quarter reflect well on the efforts of both the Alara team and those of our JV partners to accelerate the Project's construction phase. With key components of the Project now completed, including the accommodation village, we will soon be a producing mine at a time of elevated world copper prices.

While the Al Wash-hi-Majaza JV Copper-Gold Project has been the main story, we continue to advance our other Oman-based projects. We are now also in the final stage of the selection process for an Exploration License in Saudi Arabia. This is particularly exciting, as we have extensive knowledge of the ground within the proposed license area, which includes our former Khnaiguiyah zinc-copper project.

These project-related developments come as we continue to enhance the quality of the leadership group that will steer the Company during its growth journey. We are delighted to now have Madame Devaki Khimji to our Board. Her highly regarded management and entrepreneurial skills will be a great asset as we shift from being a mineral explorer to a producer."

Omani Activity

Project Developments

The Wash-hi-Majaza Copper-Gold Project consists of one Mining Licence (Al Wash-hi-Majaza) and three Exploration Licenses (Al Wash-hi-Majaza, Mullaq and Al Ajal).

Oman Project Construction Update

Al Hadeetha Copper-Gold Project

Oman

(Alara - 51%: Al Hadeetha Investments LLC - 30%; Al Tasnim Infrastructure Services LLC 19% (AHRL))

Copper Project Construction Commencement

Alara continued to progress development of the Al Wash-hi-Majaza Copper-Gold Joint Venture Project ("Project") over Q3 FY22.

Some components of the construction phase have already been completed. Project construction is scheduled for final completion in November 2022. When operational, the Project will consist of a copper-gold mine and a 1 MPTA copper concentrate plant1.

Mining accommodation camp

Construction of the Project accommodation village was completed on schedule after the reporting period. The village is designed to house 325 personnel from the construction, mining and plant operation crews. As the construction crew accommodation requirement diminishes, the camp will be progressively retrofitted to house permanent mine and process facility staff.

Accommodation village (wide-angle view)

Accommodation village amenities include:

•  Dining halls capable of serving cuisine for both Omani nationals and expat staff.

•  Power grid connection ready, firefighting facilities, water supply, sewage processing, general store and other facilities needed to support high-quality village life.

•  Playing field suitable for football, cricket and other sports and two halls incorporating various recreation facilities and gymnasiums.

•  Prayer hall (mosque).

•  Comprehensive first aid facilities, including a qualified nurse and standby ambulance.

1 Alara's ASX Announcements dated 1 April 2016 (Definitive Feasibility Study results initial announcement), 24 January 2017 (DFS update), 28 June 2018 (NPV update) and 29 March and 7 April 2021 (NPV updates) contain the information required by ASX Listing Rule 5.16 regarding the production target. All material assumptions underpinning the production target as announced on those dates continue to apply and have not materially changed, except to the extent that a relevant assumption in an earlier announcement referred to above has been updated by an assumption in a later announcement referred to.

•  Offices for approximately 100 mining consultants, contractors, operations, maintenance and general AHRL staff.

•  Fully equipped laboratory for in-house chemical and physical testing of mine and processing plant samples for QAQC and other purposes.

Dining hall opening ceremony. From left Farrokh Masani (Executive Director, Al Tasnim)

Atmavireshwar Sthapak (Managing Director, Alara) and Sayyed Khaled Al Busaidi (Chairman, Al Naba)

Guests led by AHRL CEO Avigyan Bera inspect the village