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. The Company retains a 17% interest in BC Iron Ltd a new iron ore company with a major project near Nullagine in the East Pilbara of Western Australia. Alkane also has a 25% interest in a nickel sulphide JV with Jubilee Mines at Leinster in WA.

Current Operations

LEINSTER REGION JOINT VENTURE
Nickel, gold – WA
Alkane Resources Ltd - 25% Jubilee Mines NL 75%

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.

NULLAGINE
Iron, diamonds, gold – WA
Alkane Resources Ltd retains a 60% in the diamond potential.
The Project is made up of three prospect areas each comprising palaeochannels with infill material which is highly prospective for CID. Previous work in the region by Alkane concentrated on diamond exploration between 1992 and 1998. The programs focused on existing and palaeo-river systems using airphoto and satellite image interpretation, stream sediment sampling, detailed and reconnaissance mapping, and stratigraphic drilling of the channels.

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.

TOMINGLEY GOLD PROJECT
Gold – New South Wales
Alkane Resources Ltd 100% (subject to separate royalty agreements with Compass Resources NL, Golden Cross Operations Pty Ltd and Climax Mining Ltd)

Feasibility studies have been ongoing since 2005 and have considered various development scenarios, most of which involve all mining and infrastructure to be located at the Wyoming site, about 2 kilometres south of the Tomingley town site.

The current conceptual development consists of two open pit mines, Wyoming One and Three, followed by an initial underground operation focussed on Wyoming One. Gold production would be through a conventional CIL gold recovery circuit at an open pit rate of 0.5 to 1.0 million tonnes per annum followed by an underground mine at 0.25 million tonnes per annum. This treatment rate would recover 35,000 to 70,000 ounces of gold a year for a minimum of six years. It is anticipated that the current feasibility study should be completed by mid 2007, leading to a final definitive feasibility study and hopefully a development decision by the end of the year.

Capital costs remain crucial to the financial viability of the project and the Company has been actively reviewing available plant and equipment throughout Australia. As the final specifications are not yet available, no plant has been sourced to date. A 1Mtpa operation is anticipated to cost around A$40 million.

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	Company Secretary
Terry Ransted	Chief Geologist
Mike Sutherland	General Manager NSW
Karen Brown	Corporate Administrator

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

Postal address
PO Box 8178
Perth Business Centre
Perth WA 6849
Tel: +61 8 9328 9411
Fax: +61 8 9227 6011

Year End

31 December

Most Recent Statement

01/07/08 - Dubbo Zirconia Project Update24hpm
20/06/08 - BONANZA CALOMA RC GOLD INTERCEPTS
11/06/08 - Caloma and McPhillamys Project Updates
29/05/08 - CALOMA RESOURCE DRILLING COMPLETED
20/05/08 - AGM presentation
12/05/08 - Caloma RC Drilling Continues To Return Significant Gold Results

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