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

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)

The Tomingley Gold Project (TGP) extends over 100 km from near Parkes in the south, to near Narromine in the north, located within the Central West of New South Wales and covers a narrow sequence of Ordovician volcanic rocks. The current area of focus is the Wyoming and Caloma Prospects situated about 12 km north of the Company’s Peak Hill Gold Mine and immediately north of the historic 70,000 ounce gold producing Myall United Mine.

Wyoming and Caloma are part of a number of prospects and gold occurrences located along this volcanic belt. Gold mineralisation has a close spatial relationship to a feldspar porphyry which intrudes into andesitic volcaniclastic rocks near their western contact with a more pelitic sequence. Mineralisation is associated with extensive alteration and quartz veining of the porphyry and volcanic rocks. Several distinct areas have been identified to date within a 3km corridor extending from McLeans in the south to Wyoming Three in the north. Major resource drilling has been completed at Wyoming and more recently Caloma, 500 metres east of the Wyoming deposits.

Wyoming Development Summary

600,000 ounce resource identified to date at Wyoming; Caloma resource scheduled for September 2008 but total is anticipated to approach 1Moz.
Definitive Feasibility Study in progress and should be completed by April 2009.
Basic development model of1,000,000tpa open pits to produce 60-70,000oz pa
Cash flows of A$30M pa for a minimum of five years from open pits and then probable underground operation to extend for a further four to five years.
Complete Environmental Assessment and lodge Development Application early 2009.
Investigate financing options, and possible development commitment by mid 2009, with production early 2010.

DUBBO ZIRCONIA PROJECT
Zirconia, yttria-rare earths, niobium-tantalum – NSW
Australian Zirconia Ltd (AZL) 100%

The Dubbo Zirconia Project (DZP) is located 20km south of the large regional centre of Dubbo, approximately 400km northwest of Sydney in the Central West region of New South Wales. The Company has carefully evaluated the commercial viability of the DZP since the discovery of the orebody and remains convinced that the Project will become an important contributor to the zirconium-hafnium, niobium-tantalum and yttrium-rare earth industries over hundreds of years. The project could also produce uranium.

Current Program

AusIndustry Commercial Ready Grant of A$3.29M on dollar for dollar basis to complete process optimisations, and construct and operate the
Demonstration Pilot Plant. Total of about 27 months
Laboratory program commenced at ANSTO (Lucas Heights) July 2006
with a Demonstration Pilot Plant operating since April 2008
Distribution of substantial volumes of all products late 2008 and early 2009.
Revise and update the 2002 feasibility study, with development decision anticipated by mid 2009.

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;

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

Geographical Spread

New South Wales and Western Australia, Australia

Board of Directors and Key Management

John Dunlop	(Chairman)
D. Ian Chalmers	(Managing Director)
Ian (Inky) Cornelius	(Non-executive Director)
Anthony Lethlean	(Non-executive Director)
Ian Gandel	(Non-executive Director)
Lindsay Colless	(Joint Company Secretary)
Karen Brown	(Joint Company Secretary)

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

Capital

242.4 million as at 30 June 2008

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%
(As at 30 June 2008)

Most Recent Statement

30/09/08 - New Drill Results Expand Known Gold System at McPhillamys
23/09/08 - Tomingley Gold Project Feasibility Study Update
18/08/08 - Significant Gold Results Extend McPhillamys Mineralisation
07/08/08 - Core Results From the Caloma and Wyoming Three Gold Deposits
16/07/08 - Quarterly Report to 30 June 2008
08/07/08 - Open Breifing - DZP and Gold Projects Update

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