Company Information for Alkane Resources Ltd

ASX-ALK

www.alkane.com.au

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ASX; ALK

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Company Statement

Alkane Resources Ltd is an ASX listed multi commodity explorer and miner focused in the Central West Region of New South Wales. It has two advanced feasibility studies in progress and a new major gold discovery in partnership with Newmont. The Company also retains a 15% interest in BC Iron Ltd a iron ore company with a major project near Nullagine in the East Pilbara of Western Australia. Alkane has a 25% reducing interest in a nickel sulphide JV with Xstrata Nickel (Jubilee) in WA.

Current Operations

New South Wales

TOMINGLEY GOLD PROJECT: Gold – New South Wales
Development Summary

Definitive Feasibility Study program well advanced, and scheduled for mid 2009
Program includes Caloma resource compilation (complete)
Revamp of Wyoming One and Wyoming Three resources (complete)
Metallurgical work nearly complete and +90% recoveries from standard gravity
CIL gold circuit, with average to above average crush/grind/chemical consumption
Mine planning and scheduling in progress
Design and engineering for CIL treatment plant in progress, with Capex and Opex
Land access nearly finalised; water supply being finalised; power supply progressing
Complete Environmental Assessment and lodge Development Application mid 2009
Investigate financing options, and development decision Q3 2009
Production anticipated Q3/4 2010

Wyoming Development Summary

Definitive Feasibility Study program well advanced, and scheduled for mid 2009
Program includes Caloma resource compilation (complete)
Revamp of Wyoming One and Wyoming Three resources (complete)
Metallurgical work nearly complete and +90% recoveries from standard gravity
CIL gold circuit, with average to above average crush/grind/chemical consumption
Mine planning and scheduling in progress
Design and engineering for CIL treatment plant in progress, with Capex and Opex
Land access nearly finalised; water supply being finalised; power supply progressing
Complete Environmental Assessment and lodge Development Application mid 2009
Investigate financing options, and development decision Q3 2009
Production anticipated Q3/4 2010

DUBBO ZIRCONIA PROJECT - Zirconia, yttria-rare earths, niobium-tantalum – NSW
Current Program

AusIndustry Commercial Ready Grant of A$3.29M in April 2006 on dollar
for dollar basis to complete process optimisations, and construct and operate the demonstration Pilot Plant (DPP).
Laboratory program to optimise flow sheet commenced at ANSTO Lucas Heights (Australian Nuclear Science and Technology Organisation) July 2006, with
Demonstration Pilot Plant commissioned March 2008.
Substantial product samples (several tonnes) from DPP to be distributed 2H 2009
Currently + 1,000kg of zirconium and 200kg of niobium.
Market update completed late 2007 – strong growth predicted in most products
Direct contact marketing in progress – Japan May and Europe/N America July.
Revise and update the 2002 feasibility study mid 2010.

ORANGE DISTRICT EXPLORATION JOINT VENTURE
Gold, copper – NSW
Alkane Resources Ltd 100% subject to Newmont Australia earning an initial 51%

In August 2005, Alkane reached agreement with Newmont Australia Limited (Newmont) to farmin to Alkane’s Orange Project which includes the Molong and Moorilda tenements located near the city of Orange in the Central West of New South Wales, adjacent to Newcrest Mining Ltd’s Cadia Valley Operations (~30Moz total resources).

Initial exploration programs tested targets at Charlies, Galloway and Borenore within the Molong Project but in mid 2006 drilling targeted the McPhillamys prospect within the Moorilda Project. This drilling has identified significant gold mineralization over a strike length of 600 metres and up to 200 metres width.

Initial drill intercepts included 123m @ 1.96g/t gold, 77m @ 1.65g/t gold and 31m @ 1.64% zinc.
Regional exploration in progress to evaluate McPhillamys type targets and more drilling scheduled for McPhillamys in the second half of 2007.
Follow up deep diamond drilling at McPhillamys late 2007 generated two substantial gold intercepts of:

KPD002 224.8m @ 1.16g/t gold within 349m @ 0.87g/t gold.

PD 003 203.7m @ 1.62g/t gold within 262.7m @ 1.32g/t gold.

PEAK HILL GOLD MINE
Gold – New South Wales
Alkane Resources Ltd 100%
The Peak Hill Gold Mine is located 400km north west of Sydney between the large regional towns of Parkes and Dubbo in the Central West of New South Wales. After completing a feasibility study in 1993 the development of the oxide mine was delayed by native title and environmental issues until 1996, with the first gold poured in October of that year.

The mine site occupies 130 hectares within the larger exploration licence area 40km2, and is located immediately to the east and north east of the township of Peak Hill.
Other projects include:

WELLINGTON - Gold
BODANGORA - Copper, Gold
CUDAL - Gold, Copper

Western Australia

LEINSTER REGION JOINT VENTURE
Nickel, gold – WA

Three prospects – LEINSTER DOWNS, MIRANDA and McDONOUGH LOOKOUT– are subject to a farm-in agreement with Jubilee Mines NL (Jubilee). Jubilee has earnt a 75% interest in the properties by spending $4.5 million.
Jubilee has completed extensive programmes of ground electromagnetic surveys, aeromagnetic surveys, diamond core and RC drilling and geological mapping. Jubilee is specifically targeting komatiite channel facies hosted nickel sulphide mineralisation at Miranda, McDonough Lookout and Leinster Downs.
Encouraging environments for massive nickel sulphide accumulation were observed at all three locations, particularly at the Taurus prospect within the Miranda tenement where the following intercepts were reported:
TAD004 9.0 metres @ 0.57% nickel from 351.0 metres and 0.15 metres @ 2.90% nickel from 324.85 metres

TAD005 0.2 metres @ 8.1 % nickel from 245.3 metres
Several other holes intersected disseminated sulphide mineralisation with grades in the range 0.5% to 1.0% nickel.

At Leinster Downs disseminated sulphides were also intersected in four holes which tested channel facies ultramafic flow sequences with 0.5% to 1.0% nickel recorded over several metres.

NULLAGINE
Iron, diamonds, gold – WA
Alkane Resources Ltd retains a 60% in the diamond potential.

In October 2006, Alkane and the Randolph Syndicate reached agreement with Consolidated Minerals Limited (CSM) to jointly float a new company, BC Iron Limited (BCI), to acquire 100% of all minerals within 14 exploration licences in the East Pilbara region of Western Australia. The BCI agreement excludes diamonds and an option granted to Vaalbara Resources Pty Ltd to acquire an 80% interest in gold, silver and uranium and Witwatersrand style mineralisation in the three Alkane-Randolph tenements (EL’s 46/522-524).

The combined tenements cover approximately 1500km2 and include a number of Tertiary aged palaeochannel systems which host extensive outcrops of iron rich pisolitic accumulations with similarity to the Channel Iron Deposits (CID) currently being mined at Robe River in the west Hamersley Range.

The project is centred about 200 kilometres southeast of Port Hedland and 100 kilometres north of Newman. The nearest existing significant infrastructure is the Newman to Port Hedland (BHPBilliton) iron ore railway which is located 50 to 100 kilometres to the west. The Fortescue Metals Group Cloud Break and Christmas Creek iron deposits and their proposed rail link to Port Hedland, are located 20 to 30 kilometres to the south.

Based on the detailed mapping, the drilling intersections and a standard specific gravity of 2.6 tonnes per cubic metre, BCI determined that a potential for 40 million tonnes per vertical metre of iron rich pisolitic material may exist within the main Bonnie Creek palaeochannel system. This provides an exploration target of between 200 million tonnes (5m thick) and 600 million tonnes (15m thick) of iron rich channel deposit within this system. Other, but smaller, potential exists within the nearby Shaw River and Nullagine River systems.

Geographical Spread

New South Wales and Western Australia, Australia

Board of Directors and Key Management

John Dunlop	Chairman
Ian Chalmers	Managing Director
Tony Lethlean	Non-executive director
Ian Gandel	Non-executive director
Ian Cornelius	Non-executive director
Lindsay Colless	Joint Company Secretary
Karen Brown	Joint Company Secretary

Terry Ransted	Chief Geologist
Mike Sutherland	General Manager NSW
David Meates	Senior Geologist TGP
Peter Duerden	Senior Geologist Orange
Jim Thornton	Geologist Orange
Glen Morgan	PHGM Site Supervisor
Stewart Lamond	Field Supervisor
David Moyses	Cartographer

Company Address

129 Edward Street
Perth, Australia 6000


Telephone:	+61 8 9227 5677
Facsimile:	+61 8 9227 8178
Email:	mail[at]alkane.com.au
Website:	http://www.alkane.com.au

Additional Address/Key Contact

Postal address
PO Box 8178
Perth Business Centre
Perth WA 6849

Technical Office
96 Parry Street,
Perth WA 6000
Tel: +61 8 9328 9411
Fax: +61 8 9227 6011
Email: ichalmers@alkane.com.au

Capital

Issued Capital - 244.6m shares

Year End

31 December

Major Shareholders

Abbottsleigh Pty Ltd	29.1%
ANZ Nominees	7.5%
Merrill Lynch	7.2%
National Nominees	4.2%
Sydney Equities	2%

Most Recent Statement

22/01/10 - Quarterly Report 31 December 2009
16/12/09 - Tomingley Gold Project Progress Report
16/11/09 - Rare Earth and Yttrium Products Produced from the Dubbo Demonstration Pilot Plant
02/11/09 - Further Significant High Grade Gold Results at Caloma
19/10/09 - September 2009 Quarterly Report
19/10/09 - TGP Feasibility, DZP & Exploration

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