Slide 1: ALKANE EXPLORATION LTD – Presentation cover letter
ALKANE EXPLORATION LTD ABN 35 000 689 216 Ih CORPORATE OFFICE: 129 Edward Street, Perth WA 6000 (PO Box 8178, Perth Business Centre, Perth WA 6849) Telephone +61 8 9227 5677 Fax:+61 8 9227 8178 Email: mail@alkane.com.au 23 August 2004 Manager Announcements Company Announcements Office Australian Sto
Slide 2: August 2004
gees s te ill age August 2004 (an) - oad Z, S os << me © = a = ica 4 ad LKAN : i
Slide 3: Corporate Profile
CORPORATE PROFILE 1 ASX Code ALK (listed since 1969) 1 Issued Capital 136m shares 9.8m listed opis / 9.2m unlisted 1 Cash $2.0m 1 Trading Range 03/04 $0.17 - $0.56 a Current Market Cap $25m a No Debt
Slide 4: Central Lachlan Fold Belt
Central Lachlan Fold Belt Younger granites Monzonitic intrusions Ordovician are volcanics Fifield complexes
Slide 5: Central West NSW
Central West NSW Younger granites Monzonitic intrusions Orde an arc volcanics Fifield complexes
Slide 6: Tomingley Gold Project Regional Outcrop Geology
Tomingley Gold Project Regional Outcrop Geolog Hervey Group ulladerry Rhyolite Yeoval Granite Forbes Group | Mungincoble Chert a Cotton Formation Goonumbla (Mingelo) Volcanics
Slide 7: Wyoming Geological Summary
Wyoming Geological Summary Pelitic sediments Feldspar porphyry P| Feldspar porphyry, strongly sheared Volcaniciastic sediments Chlorite-talc schist Mineralisation
Slide 8: Wyoming One Simplified Interpretation
oming One Simplified Interpretation E376 Structure c sediments Volcaniclastic sediments Feldspar porphyry 200m RL (-70m) Feldspar porphyry 100m RL (-170m) Feldspar porphyry Om RL (-270m)
Slide 9: Wyoming One East-West Section 6393350mN
Wyoming One East - West Section 6393350mN Alluvium Volcaniclastic sediments Feldspar porphyry | Volcaniclastic conglomerate Mineralisation
Slide 10: Wyoming One East-West Section 6393300mN
Wyoming One East - West Section 6393300mN Alluvium Pelitic sediments Feldspar porphyry | Volcaniclastic sediments nicia iglom Chiorite-talc schist ralisation
Slide 11: Wyoming One North-South Section 614075mE
Wyoming One North — South Section 614075mE Alluvium Volcaniclastic sediments Feldspar porphyry Mineralisation
Slide 12: 3D Model
y Ai Model 3D
Slide 13: Wyoming Three 3D Model
Wyoming Three 3D Model
Slide 14: Tomingley Gold Project Resource Summary
TOMINGLEY GOLD PROJECT Resource Summary Wyoming One and Three Dec’ 03 0.75g/t / 1.00g/t / 3.00g/t gold cut off Measured 4.835 mt @ 2.24g/t gold 348,350 oz Indicated 1.025 mt @ 2.76g/t gold 91,000 oz Inferred 0.520 mt @ 3.49g/ gold 58,500 oz TOTAL(0.75) 6.380 mt @ 2.43g/t gold 497,850 oz Measured 4.0
Slide 15: Tomingley Gold Project Wyoming Development Summary
TOMINGLEY GOLD PROJECT Wyoming Development Summary Pre-feas study 1Mtpa open pits — CIL recovery -> 60-70,0000zs Capex $30M Not financially robust due to overburden costs - needs additional open pit ore feed Current program: Remodelling of ore system to increase o/p grade Examine u/g options based o
Slide 16: Wyoming One High Grade Ore Shoot Targets
Wyoming One High Grade Ore Shoot Targets tructure sediments Volcaniclastic sediments Feldspar porphyry 200m RL (-70m) Fe! ry 100m RL (-170m) Feldspar porphyry Om RL (-2 High grade targets
Slide 17: Wyoming One 376 Structure gram/metre contours
Wyoming One *376° Structure gram/metre contours
Slide 18: Hangingwall gram/metre contours
Hangingwall gram/metre contours co
Slide 19: Tomingley Gold Project Current Regional Exploration
Tomingley Gold Project vo “ee D as Current Regional =| _ Exploration ety Co y ee : es a ies / a Dts Le oe a LKANE
Slide 20: Tomingley Gold Project Regional Targets
Tomingley Gold Project Regional Targets Hervey Group ulladerry Rhyolite Yeoval Granite Forbes Group | Mungincoble Chert a Cotton Formation Goonumbla (Mingelo) Volcanics
Slide 21: Bodangora Wellington Project Location
Bodangora Wellington Project Location aphecaisrsseg Sekt. Younger granites Monzonitic intrusions Orde an arc volcanics Fifield complexes
Slide 22: Bodangora Wellington Regional Geology
Bodangora Wellington Regional Geology Great Australian Basin Permian sediments Carboniferous granite Devonian ~ Silurian sediments and VO Ss Ordov volcanics and sediment Monzonite intrusives Bodangora mine vein system Nindethana thrust zone
Slide 23: Wellington Project Galwadgere Geological Interpretation
Wellington Project Galwadgere Geological Interpretation with Proposed Resource Drill Holes
Slide 24: Wellington Project Galwadgere May 2004 RC Drill Holes
Wellington Project Galwadgere May 2004 RC Drill Holes Section 6289860mN io GG a6 Sigh)
Slide 25: Galwadgere Prospect Diagrammatic Section
Galwadgere Prospect Diagramatic wong S Section 1600 mN 1800 mN 2000 mN 2400 mN JGALO08 47m @ 0.90% Cul 58aqit Au nel 9m @ 0.97% Cu 6: mc Au) sg — oe | | Permian sediments (off section) 20.75% Cu over 2m co Devonian - Silurian sediments and volcanics >0.5g/t Au over 2m
Slide 26: Wellington Project Current Galwadgere Program
WELLINGTON PROJECT Current Galwadgere Program Drilling: 3,000m RC to test ore system over strike length of 400m and to depth of 150m early Sept 50m sections to Indicated Resource status Further drilling scheduled depending upon results Data compilation and target definition High resolution aeromagne
Slide 27: Drill Targets
ine ill Targets ] Bodangora Mine _ Historie 200,000 oz & Dr ings oS fam © of = = —) ° a) Work 1c istor _ Bodangora South H
Slide 28: Central West Conceptual Development Hubs
Central West Conceptual Development Hubs ! v an li | Younger granites Monzonitic intrusions Ordovician are volcanics Fifield complexes
Slide 29: Dubbo Zirconia Project Summary
DUBBO ZIRCONIA PROJECT SUMMARY One of the worlds largest , yttrium and resources (+ 100 million tonnes) - also contains significant and rare earth elements Project based upon large Jurassic aged alkaline volcanic complex with highly metal enriched vertical trachyte intrusive Feasibility study to pro
Slide 30: Dubbo Zirconia Project Current Summary
DUBBO ZIRCONIA PROJECT Current Summary Development joint venture signed with Astron Limited October 2003 Astron is ASX listed with major zirconia, zirconium chemicals production in north east China. Currently produces 25% of world output. Astron’s financials for 2002/03: A$6.24m atp on A$81.4m turno
Slide 31: A High Technology Company
A High Technology Company ® High tech processes « Mineral sands separation technology and markets Advanced zirconium chemistry and product applications Fused zirconia processing and product applications Titanium chemistry and products Vacuum furnace processing and products Chemical plant design and
Slide 32: Business Is Zirconium Materials
Business Is-Zirconium Materials RAW MATERIALS PROCESSED “PRODUCTS END USES ZIRCONIA PRODUCTS BADDELYITE (Generally increasing purity} (5000 tonnes) FUSED Refractories ZIRCONIA Ceramic Pigments CHEMICAL lass/Gemstones PURIFICATICN ZIRCON (1,200,000 tonnes) ZIRCONIA FROM CHEMICAL PROCESSING ZIRCONIUM
Slide 33: World Zirconia and Zirconium Chemical Production Capacity
World Zirconia and_Zirconium Chemical Production Capacity (ZrO2 Units) ‘000 Fused Zirconia Zr Chemical/zirconia Total
Slide 34: A Critical Supply Gap
wg g-A Critical Supply Gap 4900 1002 «1004 «1006 1998 2000 2002 2004 2006 2008 ween Existing Producers. : Expansions iim New Production ome Darn and
Slide 35: Expand
Expand # Expansions planned for 2004 Stabilized fused zirconia Chemical zirconia Zirconium oxychloride Zircon flour
Slide 36: Western Australian Project Locations
WESTERN AUSTRALIAN PROJECT LOCATIONS om @ 0.51% Ni 0,15m @ 2.9% Ni 0.2m @ 8.1% Ni
Slide 37: Alkane Strategy 2004-06
ALKANE STRATEGY 2004-06 Strategic focus on Central West Region in New South Wales with the aim of developing a resource inventory and substantial production output GOLD: To build a 100,000 oz per year (equivalent) output based upon production from Wyoming, Galwadgere and Bodangora, and possibly Oran