Alkane Resources Ltd · ASX:ALK

Alkane Resources — RIU Sydney Resources Round-up 2016

27 slides from Alkane Resources's conference presentation, May 11, 2016

1. Slide 1: RIU Sydney Resources Round-up

   For personal use only RIU Sydney Resources Round-up Natalie Chapman May 2016

2. Slide 2: 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 (Company Secret

3. Slide 3: Corporate Profile

   Corporate Profile For personal use only • Listed on ASX since 1969, also listed on OTCQX (US) • ~6,300 shareholders • Multi commodity explorer, miner and developer focused on Central West of NSW, Australia • Active in region for more than 20 years • Developed Peak Hill Gold Mine in 1996, operated to

4. Slide 4: 1H FY2016 Snapshot

   1H FY2016 Snapshot For personal use only Indicative Shareholder Base as at 31 March 2016 1H FY2016 Financials • Total income A$56.2 million 16% 3% • Profit before income tax A$8.9 million • Operating cash flow A$19.1 million • Total equity A$178.1 million 7% • Market cap at 21 April ~A$90 million •

5. Slide 5: Tomingley Gold Operation

   Tomingley Gold Operation For personal use only  Project Information  FY 2016 Guidance:  $115M construction capex funded without debt  Production 60,000 – 70,000oz  Resource – ~688,000oz of gold (ASX 21 Sept 2015)  AISC(1) A$1,250 – A$1,350/oz (1) Refer to ASX Quarterly Activities Report dated

6. Slide 6: TGO Mine Schedule

   TGO Mine Schedule For personal use only Wyoming Three Caloma Two and Caloma Wyoming One FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Wyoming Three Wyoming One Wyoming One Underground Caloma Caloma Underground Caloma Two Peak Hill Underground ?? ? Exploration ?? ? Anticipated production oz 65-70

7. Slide 7: Dubbo Zirconia Project

   Dubbo Zirconia Project For personal use only Located 400km northwest of Sydney within a region that has substantial infrastructure – roads, rail, power, gas, light engineering, people (~100,000), being a large agricultural and mining area A very large polymetallic resource of the metals zirconium ha

8. Slide 8: Process Flowsheet

   Process Flowsheet For personal use only © 2016 Alkane Resources Ltd 8

9. Slide 9: Product Output

   Product Output For personal use only 6,664 tpa Rare earth chemical concentrate 95% REO DZP Process Plant (REO units) 16,374 tpa Zirconium as ZBC (carbonate) & zirconia 99% ZrO2 (ZrO2 units) 50 tpa Hafnium as HfO2 concentrate HfO2 conc * (Hf units) 1,967 tpa Niobium as ferro-niobium 65% Nb (Nb units)

10. Slide 10: Rare Earth Output

    Rare Earth Output For personal use only DZP REE SX Toll treatment – off site Rare Earth Concentrates La2O3 1,441tpa La / Ce CeO2 2,367tpa Pr6O11 237tpa Pr / Nd Nd2O3 921tpa Sm2O3 112tpa Sm / Eu / Gd Eu2O3 3tpa Gd2O3 107tpa Tb / Dy / Ho / Er / Tb4O7 14tpa Tm / Yb / Lu Dy2O3 122tpa Y (2/3N) Ho2O3 22tp

11. Slide 11: DZP Marketing and Off-take

    DZP Marketing and Off-take For personal use only Joint venture with Treibacher Industrie AG to produce and market ferro-niobium Finalising a zirconium product and sales marketing agreement with European producer and trader (40 years in Zr) for world wide distribution Off-site rare earth processing L

12. Slide 12: Vietnam Rare Earth JSC LOI

    Vietnam Rare Earth JSC LOI For personal use only Rare Earth Separation Plant  Phu Ly – 4,000tpa REO separation plant producing La, Ce, Nd, Pr, Dy and Tb Selling certified products into Asia  Hai Phong – 1,200tpa RE metal /alloy plant Selling certified RE metals into Asian permanent magnet manufact

13. Slide 13: Cleantech and Technology Applications

    Cleantech and Technology Applications For personal use only  ZIRCONIUM: Auto catalysts for emissions minimization; thermal barrier coatings for turbines (jet and industrial); ceramics; special alloys/glass; paint drying; paper coating; jewelry  HAFNIUM: turbine alloys (jet and industrial); special

14. Slide 14: DZP Financial Summary

    DZP Financial Summary For personal use only Front End Engineering Design (FEED) completed August 2015 on 1Mtpa ore processed Capex US$0.97B / US$77M contingency Revenue US$430 - $470Mpa Opex US$195Mpa EBITDA US$235 - $275Mpa 20 year NPV US$0.92B (8%) and 17.5% IRR Revenue based upon Chinese domestic

15. Slide 15: Key Milestones to Development

    Key Milestones to Development For personal use only Milestone Timing* Project Resources  Acquire remaining key project land parcels Q1/Q2 2016  Secure remaining water resources Project funding  Powerline easement option fees Project funding Key Agreements  Rare earth toll processing agreement Q2

16. Slide 16: The DZP Advantage

    The DZP Advantage For personal use only Internationally strategic with supply of several critical metals from non-Chinese sources Business case has robust revenues, even at current Chinese domestic RE and Zr prices Full spectrum of rare earth magnet materials – neodymium, praseodymium, dysprosium an

17. Slide 17: 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

18. Slide 18: Thank you

    For personal use only © Thank you

19. Slide 19: Zirconium Industry

    Zirconium Industry For personal use only Zircon Demand by End Use (2015 ~ 1 million tonnes) Other 3% Foundry 12% Ceramics 47% Chemicals 21% Refractory 17% Global market US$2-3B China dominates downstream 2015 producer zircon inventories still high zirconium industry (85-90%) Market expected to stabi

20. Slide 20: Zirconium Applications

    Zirconium Applications For personal use only Auto exhaust catalysts – ceria stabilised zirconia Thermal barrier coatings – yttria stabilised zirconia for jet and industrial gas turbines, and many other applications Substantial growth in advanced ceramics and cubic zirconia (jewellery) Current world

21. Slide 21: Hafnium Industry

    Hafnium Industry For personal use only Super Alloys - 73% of 2015 supply By-product from zirconium metal • Depends on nuclear industry Prices escalating through demand by aerospace industries 2014 into 2015 © 2016 Alkane Resources Ltd Source: Modified after Lipmann Walton & Co Ltd 2015 21

22. Slide 22: Hafnium Applications

    Hafnium Applications For personal use only Jet Engine Turbine Industrial Gas Turbine Forecast International: gas turbine power generation market has entered a period of sustained growth: Both passenger and military aircraft growth at plus  18,800 gas turbine engines for power generation in 100% ove

23. Slide 23: Rare Earth Industry

    Rare Earth Industry For personal use only REE Demand 2016 by Application US$3-5B Global market Other 136,000t Annual consumption 2014 Catalysts 8% 18% 3-5% Annual growth estimates Ceramics 85-90% REE produced by China 5% Glass 6% Phosphors 5% Permanent magnet dominant consumer and growth ~ 8% pa Ann

24. Slide 24: Rare Earth Applications – Permanent Magnets

    Rare Earth Applications – Permanent Magnets For personal use only Permanent Magnets – major growth • Hybrid and electric cars • Wind turbine • Industrial gas turbines • Marine electric motors Thysen Krupp Maritim Permasyn marine propulsion systems © 2016©Alkane 2016 Alkane Resources Resources Ltd Lt

25. Slide 25: Niobium Industry

    Niobium Industry For personal use only 90% of Nb used in standard grade ferro-niobium for the production of high strength low alloy (HSLA) steels World production estimated at 60,000t Nb in 2014. CBMM in Brazil accounts for 85% Global market US$3-4B. Price stability since 2008, including GFC CAGR an

26. Slide 26: DZP Resources and Reserves

    DZP 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 0.1

27. Slide 27: Resource & Reserves: Tomingley

    Resource & Reserves: Tomingley For personal use only TOMINGLEY GOLD OPERATIONS MINERAL RESOURCES (as at 30 June 2015) 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 Pittab

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