Alkane Resources Ltd · ASX:ALK

Alkane Resources — Shareholder Meeting (November 2014)

32 slides from Alkane Resources's shareholder meeting presentation, Nov 19, 2014

1. Slide 1: Annual General Meeting

   For personal use only Annual General Meeting Sydney 19 November 2014

2. Slide 2: Disclaimer

   Disclaimer For personal use only This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth or other tre

3. Slide 3: For personal use only

   For personal use only © 2014 Alkane Resources Ltd 3

4. Slide 4: Corporate Snapshot

   Corporate Snapshot For personal use only 6% 412.6 Million Shares 23% A$92M Market Cap • 18 November 2014 A$28M Cash/Investments 37% • 30 September 2014 11% A$ 0 Debt A$0.17/$0.44 • 12 Month Low/High 23% ALK (ASX) ANKLY (OTCQX) Hedge Funds Retail & others Directors & Management Foreign Institution Do

5. Slide 5: Board & Management

   Board & Management For personal use only Board  John S F Dunlop (Chairman) BE(Min), MEngSc(Min). Mining engineer  D Ian Chalmers (Managing Director) MSc. Geologist  Ian J Gandel (Director) LLB, BEc. Businessman  Anthony D Lethlean (Director) BAppSc. Geologist/Banker  Karen Brown (Joint Company

6. Slide 6: 2014 Achievements

   2014 Achievements For personal use only  Tomingley Gold Operations – construction on time and on budget  Tomingley Gold Operations – production overcall for first full quarter (Sept 2014)  Dubbo Zirconia Project – EIS lodged June 2013  DZP – NSW Dept of Planning & Environment gives conditional a

7. Slide 7: Central West NSW

   Central West NSW For personal use only Peak Hill Gold Mine 1996 - 2005 Tomingley Gold Operations Production commenced 2014 – cash flow Dubbo Zirconia Project Pre-construction Active in region for more than 20 years Successful ongoing exploration program World-class strategic development © 2014 Alkan

8. Slide 8: Tomingley Gold Operations

   Tomingley Gold Operations For personal use only • Resource – 830,000oz of gold • Construction CAPEX – A$116M • Mine Method – open cut & underground • Mine Life – 7.5 years (targeting 10+ years) • Processing plant throughput – 1.0Mtpa • 2.00g/t Au and 93% recovery standard CIL • Gold Production – ~40

9. Slide 9: TGO Resource Expansion

   TGO Resource Expansion For personal use only Additional Resource Potential Caloma Two open pit and underground Expand Wyoming One underground Caloma underground Myalls underground Wyoming Two and Three underground McLeans Caloma Two – Geological model © 2014 Alkane Resources Ltd 9

10. Slide 10: TGO Site Movie

    TGO Site Movie For personal use only http://youtu.be/wXBT7o8Wn_w © 2014 Alkane Resources Ltd 10

11. Slide 11: Dubbo Zirconia Project

    Dubbo Zirconia Project For personal use only © 2014 Alkane Resources Ltd 11

12. Slide 12: World Production 2013

    World Production 2013 For personal use only © 2014 Alkane Resources Ltd 12

13. Slide 13: Rare earth Industry

    Rare earth Industry For personal use only REE Demand 2016 by Application • US$3-5B Global market Other Catalysts • 115,000t Annual Consumption 2013 8% 18% • 5-10% Annual growth estimates Ceramics REE Demand 2013 by Country 5% Glass 6% Phosphors Other 5% US 6% 14% Japan 15% China Polishing 65% 12% Ma

14. Slide 14: China's Rare Earths Industry

    China’s Rare Earths Industry For personal use only China’s government actions to manage rare earths industry Regulation Consolidation Quotas Taxes Policies • Crackdown on • Rare earth • Mining and • Export taxes are • Policies to attract Illegal mining separation production 15%~25%, foreign • Enviro

15. Slide 15: Zirconium Industry

    Zirconium Industry For personal use only Zircon Demand by End Use (2013 ~ 1 million tonnes) Other 3% Foundry 12% Ceramics 47% Chemicals 21% Refractory 17% • Global market US$2-3B • 2014 consumer zircon inventories running down • Market expected to stabilise through 2015 - 2016 • CAGR anticipated at

16. Slide 16: Zirconium Industry Challenges

    Zirconium Industry Challenges For personal use only Zirconium chemicals Fused zirconia • Dealing with U+Th waste residues • Will <500 ppm U+Th be required for ZOC production for fused zirconia? • ZOC production of 270,000 tpa • Yes, if exported to USA or Japan requires 167,000 t zircon • China and e

17. Slide 17: Rare Earths & Zirconium are everywhere..

    Rare Earths & Zirconium are everywhere.. For personal use only Health Energy efficient lighting Auto - emissions Replaces lead in paint Renewable energy Electronics Smart technologies Replaces teeth © 2014 Alkane Resources Ltd 17

18. Slide 18: Comparison of Chinese Rare Earths vs. Zirconium Industries

    Comparison of Chinese Rare Earths vs. Zirconium Industries For personal use only Rare Earths Zirconium Industry Government led consolidation Low Government control Market share 90% world market share of separated 75% world market share, 90% zirconium rare earths and smelted metals chemicals, 50% fus

19. Slide 19: Niobium Industry

    Niobium Industry For personal use only 90% of Nb used in standard grade ferroniobium for the production of high strength low alloy (HSLA) steels. World production estimated at 80,000t Nb in 2012. CBMM in Brazil accounts for 85%. Global market US$3-4B. Price stability since 2008, including GFC. CAGR

20. Slide 20: Niobium strengthening steel

    Niobium strengthening steel For personal use only Bridges Auto Pipelines © 2014 Alkane Resources Ltd 20

21. Slide 21: Geology and Resources

    Geology and Resources For personal use only Trachyte lava or sub-volcanic intrusive Largely homogeneous ore body Ore mineralogy: • eudialyte (“like” Zr silicate +Y and HRE) • natroniobite (Nb-Ta) • bastnaesite (LRE) All readily soluble in sulphuric acid forms basis of recovery process © 2014 Alkane

22. Slide 22: Process Flowsheet

    Process Flowsheet For personal use only Demonstration pilot plant for this circuit has been operating at ANSTO since 2008 © 2014 Alkane Resources Ltd 22

23. Slide 23: DZP Estimated Product Output @ 1Mtpa

    DZP Estimated Product Output @ 1Mtpa For personal use only 1,309t 100% 5% 90% 95% yttrium, dysprosium, 20% 4,665t 30% terbium 80% 28.5% of revenue 8% 1,967t 70% 90% neodymium, 60% 24% praseodymium 50% 21.6% of revenue 40% 16% 67% 15,827t 30% 20% 31% 10% 0% Production 23,768t Revenue A$410 - 450Mpa*

24. Slide 24: Product Value Enhancements

    Product Value Enhancements For personal use only Continuing Product Development for Increased Return • Rare Earths: • MOU with Shin-Etsu Chemical to produce suite of separated rare earth oxides from LRE and HRE chloride concentrates / commercialisation of toll treatment off-take agreement • Sale of

25. Slide 25: Funding Strategy

    Funding Strategy For personal use only Government Commercial Bank Equity Capital Sale of Project Level Assistance Programs Debt Markets (ALK) • ECA Style Funding • Minority • Advisors: Credit • Advisors: Credit • Lead coordinator: Interest(s)~15% Suisse & SMBC Suisse & Petra Sumitomo Mitsui • Sale A

26. Slide 26: Construction Strategy

    Construction Strategy For personal use only  Hybrid EPC/EPCM construction strategy • EPCM for front end engineering with large packages as EPC (eg EPC acid plant and niobium plant)  Strategy to be optimised as front end engineering design progresses • potential for capex reducing strategies (eg BO

27. Slide 27: Environment

    Environment For personal use only Alkane has a 25 year history of sustainable mine management EIS lodged 28 June 2013; public exhibition submissions reviewed. DP&E sent to PAC Water • 70% recycle of process water currently achievable • Limited site groundwater aquifers – minimal impact • Water secur

28. Slide 28: Approval Process

    Approval Process For personal use only  Environmental Impact Statement lodged June 2013  Public Exhibition October / November 2013  Response to submissions and dialogue with NSW Dept of Planning & Environment (DP&E) January – May 2014  DP&E gives conditional approval and recommends to the Planni

29. Slide 29: Exploration

    Exploration For personal use only • Bodangora gold‐copper prospect o Large monzonite intrusive complex with gold-copper mineralisation o Similarities to Newcrest’s Cadia-Ridgeway gold‐copper mine o Recent drill intercepts at new target (Kaiser) (ALK ASX 8 April 2014) o 41m @ 1.15g/t gold and 1.24% c

30. Slide 30: Alkane Resources Ltd - Thank you for your support

    ALKANE RESOURCES LTD For personal use only Thank you for your support Gold producer with world class Dubbo Zirconia Project 19 November 2014

31. Slide 31: Resources and Reserves

    Resources and Reserves For personal use only Dubbo Zirconia Project – Mineral Resources Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO Deposit (Mt) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 Total 73.20 1.96 0.04 0.46 0.03 0.14 0.

32. Slide 32: Resource & Reserves: Tomingley

    Resource & Reserves: Tomingley For personal use only TOMINGLEY GOLD PROJECT MINERAL RESOURCES (as at 30 June 2014) MEASURED INDICATED INFERRED TOTAL Total Gold DEPOSIT Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Koz) Open Pittable

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