Alkane Resources : RC Drilling Delineates Significant Au-Cu Mineralisation

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ASX and MEDIA RELEASE

18 July 2022

Kaiser RC Drilling Delineates Significant Au-Cu Mineralisation

• Initial results returned for the Reverse Circulation (RC) drilling program at the Kaiser prospect identified multiple zones of significant gold-copper mineralisation including:

KAI057	357m grading 0.23g/t Au, 0.25% Cu from 7m
incl	173m grading 0.34g/t Au, 0.42% Cu from 87m
incl	37m grading 0.97g/t Au, 1.0% Cu from 113m
KAI053	177m grading 0.32g/t Au, 0.14% Cu from surface
incl	36m grading 0.53g/t Au, 0.24% Cu from 9m
also	29m grading 0.68g/t Au, 0.20% Cu from 73m
incl	1m grading 11.05g/t Au, 1.35% Cu from 75m

• At Boda Two, results were received for diamond core drill holes KSDD050 and BOD061, testing the southern extension of gold-rich pyrite mineralisation intersected in KSDD022 as well as north-south continuation of broad gold-copper mineralisation intersected in previously announced drillholes. Significant intercepts are:

KSDD050	306m grading 0.57g/t Au, 0.04% Cu from 928m
incl	34m grading 0.36g/t Au, 0.16% Cu from 1045m
also	155m grading 0.80g/t Au, 0.02% Cu from 1079m
incl	38m grading 1.9g/t Au, 0.02% Cu from 1106m
incl	1m grading 28.4g/t Au, 0.02% Cu from 1135m
BOD061	522m grading 0.28g/t Au, 0.14% Cu from 855m
incl	56m grading 0.73g/t Au, 0.28% Cu from 1232m
and	57m grading 0.38g/t Au, 0.16% Cu from 1436m

• The initial 100m x 100m RC drilling at the Kaiser prospect to identify shallow open pittable mineralisation is near competition with a diamond core rig mobilised to tail selected RC holes to greater depths.
• The recently completed Induced Polarisation (IP) with Magnetotelluric (MT) survey undertaken over the north-west structural corridor area extending 5km north-west of Kaiser, has identified two high-priority targets which are to be drill tested in the near future.

CONTACT	: NIC EARNER, MANAGING DIRECTOR, ALKANE RESOURCES LTD, TEL [phone]
INVESTORS	:	NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL [phone]
MEDIA	:	PAUL RYAN, CITADEL-MAGNUS, TEL [phone]

Level 4, 66 Kings Park Rd, West Perth WA 6005, AUSTRALIA	(PO Box 768, West Perth WA 6872, AUSTRALIA)
Telephone: [phone] Facsimile: [phone]	www.alkane.com.au [e-mail]

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• A major RC and diamond core infill drilling program has been designed at the Boda Two and Boda Three prospects. The drilling program will decrease the drill hole spacing to an average of approximately 75m spacing. Pending approvals this drilling will commence in August 2022.

Alkane Resources Limited (ASX: ALK) announces the first set of results from its initial resource drilling program at the Company's Kaiser Prospect in Central New South Wales. Kaiser is to the immediate north-west of the landmark Boda porphyry gold-copper system, within the Northern Molong Porphyry Project, which the Company believes has the potential to be a large, tier one gold-copper project.

Alkane also operates the nearby Tomingley Gold Operations ('Tomingley').

Alkane Managing Director, Nic Earner, said: "As anticipated, the RC drilling program at Kaiser is showing that mineralisation is both extensive and reaches the surface. Drilling at Kaiser continues, and an initial resource estimate is scheduled for preparation and release in the coming months.

"The team is also drilling south of the Boda resource at Boda Two and Three to follow up on the higher-grade mineralisation previously identified. Planning is also underway to drill other nearby targets identified by the recent IP and MT surveys.

"These results build on the initial Boda resource released in May and are encouraging confirmation that the Northern Molong Porphyry Project has significant potential yet to be unlocked."

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Alkane Resources Ltd - Northern Molong Porphyry Drilling - 18 July 2022

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Northern Molong Porphyry Project (NMPP)

Alkane Resources Ltd 100%

The NMPP is located in central west NSW at the northern end of the Molong Volcanic Belt of the Macquarie Arc and is considered highly prospective for large scale porphyry and epithermal gold-copper deposits.

Exploration in the NMPP has already identified five discrete magnetic/intrusive complexes - Kaiser, Boda, Comobella, Driell Creek and Finns Crossing - within a 15km northwest trending corridor. The corridor is defined by intermediate intrusives, lavas and breccias, extensive alteration and widespread, low-grade,gold-copper mineralisation.

A major RC and diamond core drilling program commenced in July 2020, designed to test the dimensions and extensions to the large low-grade mineralised envelope as well as any internal high-grade zones at Boda. In addition, the drill program is testing other known gold-copper mineralisation occurrences and co-incident IP anomalies within the 15 km monzonite intrusive corridor that extends from Boda Three to Finns Crossing.

Following the reporting of an initial Inferred Resource for the Boda deposit (ASX Announcement 30 March 2022), RC and DD core drilling has continued to test mineralised zones outside of the resource envelope at Kaiser, Korridor and Boda Two.

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Alkane Resources Ltd - Northern Molong Porphyry Drilling - 18 July 2022

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Kaiser Prospect

The Kaiser prospect comprises a thick sequence of basaltic to andesitic volcanics and volcaniclastics that have been intruded by a series of dykes and stocks that range in composition from diorite and monzodiorite to monzonite. Porphyry gold-copper mineralisation at the Kaiser prospect is associated with two northwest trending zones of potassic to calc-potassic alteration, the Kaiser and Duke Zones, that host zones of chalcopyrite-bornite ± pyrite in veins and as disseminations. Minor gold-copper bearing hydrothermal breccias are responsible for narrow intervals of high-grade mineralisation. The Duke and Kaiser Zones show many similarities to the Boda prospect including alteration assemblages and zonation with a northwest trend to the hydrothermal system.

An RC drilling program commenced in February 2022 which was designed on a 100m x 100m grid to a 300m vertical depth over a strike length of 800m for the purpose of estimating a shallow resource. Results have been returned for 25 holes (8,190 metres) and these results have delineated localised zones of significant gold-copper grades within the two broadly northwest trending zones.

The best results from the Duke Zone are centred within the northwest of the target area with KAI058 on the most north-western traverse returning a mineralised intercept of 182m @ 0.11g/t Au and 0.24% Cu from 53m, indicating that the system is still open to the northwest. Additionally, RC drill chip logging has indicated that several of the most north-eastern drill holes on each traverse are mineralised and subsequently addition holes have been designed to test this mineralisation at depth, as well as test extensions of shallow mineralisation along strike to the northwest.

Drilling within the Kaiser Zone during this program has been limited to the most south-westerly hole on each traverse. The best results returned thus far within the Kaiser Zone are located within the southeast of the drilling area with KAI053 returning an intercept of 177m grading 0.32g/t Au and 0.14% Cu from surface. This 90m (true width) intercept is along strike from shallow mineralisation intersected in KSRC027 - 156m grading 0.48g/t Au & 0.20% Cu from surface, and KSRC029 - 144m grading 0.22g/t Au & 0.20% Cu from surface (ASX Announcement 9 September 2019). This shallow mineralised zone continues over a length of greater than 350m through the old workings to the west-northwest.

Boda Two Prospect

The Boda Two prospect is defined by coincident magnetic high and gold-copper soil anomaly with an estimated north-south 1,100m x 500m footprint. An electrical geophysics survey (3D-IP) identified a strongly conductive target (ASX Announcement 19 May 2020) that was drill tested with KSDD022 intersecting substantial pyrite mineralisation with significant gold grades of 292m @ 0.66g/t Au from 867 metres (ASX Announcement 11 November 2020).

Drilling has been conducted on west-orientated drilling traverses, spaced 100 metres apart with broad drill hole spacing ranging between 150 - 300m. The drilling continues to identify extensive and continuous zones of low-gradegold-copper porphyry mineralisation with internal high-grade zones associated with weakly developed hydrothermal breccias of magnetite ± pyrite ± chalcopyrite. Assay results were received for two RC precollared diamond core drill holes for 3,359.9 metres, with significant intercepts of:

KSDD050	24m grading 0.25g/t Au, 0.03% Cu from 409m (Au-rich)
and	203m grading 0.23g/t Au, 0.02% Cu from 682m (Au-rich)
incl	20m grading 0.38g/t Au, 0.02% Cu from 844m (Au-rich)
and	306m grading 0.57g/t Au, 0.04% Cu from 928m (Au-rich)
incl	34m grading 0.36g/t Au, 0.16% Cu from 1045m
also	155m grading 0.80g/t Au, 0.02% Cu from 1079m (Au-rich)
incl	38m grading 1.9g/t Au, 0.02% Cu from 1106m (Au-rich)

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Alkane Resources Ltd - Northern Molong Porphyry Drilling - 18 July 2022

incl	1m grading 28.4g/t Au, 0.02% Cu from 1135m (Au-rich)
and	25m grading 0.21g/t Au, 0.11% Cu from 1269m

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BOD061	35m grading 0.32g/t Au, 0.02% Cu from 583m (Au-rich)
and	22m grading 0.28g/t Au, 0.15% Cu from 768m
and	522m grading 0.28g/t Au, 0.14% Cu from 855m
incl	56m grading 0.73g/t Au, 0.28% Cu from 1232m
and	57m grading 0.38g/t Au, 0.16% Cu from 1436m

The gold-rich pyrite mineralisation first identified in KSDD022, and now intersected in KSDD050 and BOD061 approximately 100m and 300m to the south, flanks the eastern shoulder of the porphyry gold- copper mineralisation. Distally this mineralisation is associated with quartz-pyrite veins and pyrite stringers transitioning to pyrite-cemented hydrothermal breccias at depth.

KSDD050 - A 30cm long pyrite vein breccia within a 1m sample that is grading 28.40g/t Au, 0.02% Cu

from 1135m

This gold-rich pyrite mineralisation does not extend to surface however, it is open at depth. The relationship of this zone to the porphyry gold-copper mineralisation is not fully understood but it does appear to be gradational in KSDD050 with a 40m zone of increasing copper grade at the base of the gold- rich-zone.

A major RC and diamond core drilling program has been designed at Boda Two and Boda Three with drill holes designed to target extensions to gold-copper mineralised breccias and to infill the drilling in the low- grade disseminated mineralisation. An initial hole will be drilled from west to east targeting the gold-rich pyrite mineralisation with a secondary purpose of identifying repetition in alteration and mineralisation assemblages potentially caused by steep west dipping shear zones. Drilling is expected to start in Q3 2022.

Korridor Prospect

The Korridor prospect is positioned within the northwest trending structural corridor between the Boda deposit and the Kaiser prospect. Porphyry gold-copper mineralisation was intersected from near surface in RC holes BOD066 - 226m grading 0.25g/t Au, 0.10% Cu from 12m to end of hole, and deeper in BOD065

• 64m grading 0.43g/t Au, 0.12% Cu from 174m to end of hole (ASX Announcement 17 December 2021). Subsequently, a further four holes were designed at 100m spacing to test the southeast lateral, and depth extent of this new shallow zone of mineralisation. Additionally, BOD065 and BOD066 were diamond tailed.

Drilling has established that the Korridor prospect is located over a significant NNW-SSE trending, steep WSW dipping reverse structure over which significant post-mineral displacement has occurred. This structure abuts deeper porphyry gold-copper mineralisation (BOD065) against weakly mineralised Au-rich pyrite mineralisation (BOD086) generally observed at higher levels at Boda. Northeast to east directed drilling across the fault will be required to test the footwall zone at depth.

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Alkane Resources Ltd - Northern Molong Porphyry Drilling - 18 July 2022