Alchemy Resources Limited announced it has signed a binding option agreement with Heron Resources Limited to include licences EL8631 (Nyngan) and ELA5600 (Woodsreef) into the existing Alchemy /Heron NSW Farm-In and Joint Venture Agreement, enabling Alchemy to earn up to an 80% interest in both licences. Nyngan Ni-Co Project (EL8631): EL8631 is located 10km north-west of Nyngan, NSW, covers an area of 100km2, and is contiguous with EL8318 (Girilambone) which forms part of the existing Alchemy /Heron NSW Farm-In and Joint Venture Agreement. The licence includes the West Lynn Indicated Resource of 16Mt @ 0.83% Ni, 0.06% Co, as defined by Anaconda Nickel Limited drilling in the late 1990's - early 2000.

Anaconda withdrew from the Nyngan Project prior to adequately assessing the extent of the Ni-Co mineralisation. Jervois Mining Limited was granted the licence area in 2002 prior to relinquishing in 2016 due to low Nickel prices, and subsequently Ochre Resources Limited (wholly owned subsidiary of Heron Resources Limited) was granted the area in July 2017 as EL8631. The licence is located within a belt of ultramafic/mafic rocks that cut through central NSW, extending from the ACT to the Queensland border and host numerous Ni-Co+Sc deposits such as Sunrise/Syerston, Homeville, and the Nyngan Scandium deposit just 11km south-west of EL8631.

Woodsreef Ni-Co Project (ELA5600): Exploration licence application (ELA5600) is located 35km north of Tamworth, NSW, and covers an area of 281km2 within the New England Fold Belt. The licence encompasses a 34km long section of the Peel Fault, which is recognised as a regional thrust system that hosts intrusive serpentinites and separates the Woolomin Beds and Permian granites to the east from the Tamworth Belt to the west. The principal targets in the region are vein hosted orogenic gold and copper mineralisation hosted by silica-carbonate altered serpentinites located on or adjacent to the Peel Fault, and cobalt, chromite, platinoid, and nickel sulphide targets associated with composite/layered ultramafic intrusives within the licence.

Many old gold and copper occurrences exist within the area, and previous rock chip sampling by Serpentine Minerals NL within the licence area has returned anomalous nickel values up to 0.77% Ni and copper values up to 3.4% Cu. Some significant Co-Ni soil anomalies have been generated in the northern part of the licence that warrant drilling, along with various other Co-Ni and gold in stream sediment sampling anomalies in the southern and central areas respectively. No previous drilling has been conducted within the licence area.

There have been no objections to ELA5600 and there is no reason to suspect that the licence will not be granted. The licence is located over sparsely populated freehold farm land. Option Agreement Terms: One month option period with an upfront non-refundable payment of $7,500, with a further $10,000 payment to extend the option period for an additional month, and a further $12,500 payment to extend the option period to a third month.

If the Option is exercised by Alchemy, Exploration Licence 8631 (EL8631) and Exploration Licence Application 5600 (ELA5600) (both in NSW and both owned by Ochre Resources Pty Ltd) are to be incorporated into the existing Farm-in and Joint Venture Agreement between Alchemy Resources (NSW) Pty Ltd, Ochre Resources Pty Ltd, Heron Resources Limited and TriAusMin Pty Ltd. On exercising the Option a consideration comprising 10 million fully paid ordinary Alchemy shares and 10 million Alchemy options is to be paid to Heron Resources Limited. The options are exercisable at 5 cents and have a 3 year expiry period. Existing Earn-In expenditure requirement of $2 million over 5 years to earn 80% is retained, with Alchemy required to keep all licences in good standing.