Sydney Presentation26 June 2013

Dubbo Zirconia ProjectNSW Australia

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Corporate Profile• Listed on ASX since 1969, also listed on OTCQX

• Market cap $120M

• 6,100 shareholders (85% Australian)

• Multi commodity explorer, miner and developer focused on Central West of NSW

• Active in region for more than 20 years

• Developed Peak Hill Gold Mine in 1996, operated to 2005

• Tomingley Gold Mine construction underway, first gold production early 2014

• World-class Dubbo Zirconia Project (DZP) feasibility completed; environmental assessment and financing in progress

• Successful ongoing exploration

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The Dubbo Zirconia Project

• A very large* polymetallic resource of the metals zirconium (hafnium), niobium (tantalum), yttrium and rare earths

• Important and strategic metal mix, including 25% heavy rare earth

• Open pit life of at least 70 years

• Demonstrated flow sheet with pilot plant and products for market evaluation

• Robust technical and financial feasibility completed

• Strong market interest in products

• Growing and diverse markets

*resource and reserve statement appended

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Rare Metals - Rare Earths

Rare Metals – Rare Earths• China produces 90% of world

downstream zirconium chemicals

• China currently produces 95% of world REE output

• China is limiting the export of raw rare earths materials

• Brazil produces 90% of world niobium

…not so rare, but increasingly valuable

Green technology is dependent on rare metals and rare earths

Increased demand also driven by changes in legislation

China has dominant position

Yttr

ium

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Heavy rare earthsLight rare earths

Rare metals

Middle

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Zirconium IndustryIncreasing prices

Increasing purity

DZP target market

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Zirconium Industry

Fused unstabilised

zirconia72000t

Fused stabilised zirconia25000t

Chemical zirconia40000t

ZOC 50000t

Baddeleyite, 7000t

Zirconium Chemicals Output(2011 – 194,000t ZrO2 basis CAGR 10% )

• Mid 2013 consumer zircon inventories running down

• Market expected to move back into under supply 2015 - 2016

Source: Iluka, TCMS, JP Morgan © 6

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Zirconium Prices

0

2000

4000

6000

8000

10000

12000

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

2Q2012

3Q2012

4Q2012

1Q2013

US$/T

Zirconium Price Trends US$/kg

Zircon 65% ZrO2 Fused Zirconia 99.0% ZrO2

Chemical Zirconia 99.5% ZrO2 ZOC 36.0% ZrO2

• China produces 90% of world downstream zirconium chemicals

• Zircon is the primary feed for downstream industry

• Zirconium chemicals -zirconia market (estimated) • 140,000t in 2012• 240,000t by 2020

• Zircon prices, and then zirconium chemical prices will start to increase as the market stabilises in 2014

Source: TCMS © 7

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Zirconium Applications

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Niobium Industry/Price

• CBMM (Brazil) dominates the industry85% (80,000t) of world production in 2012

• Early 2011 a Japanese Korean consortiumacquired 15% of CBMM for US$1.95B

• September 2011 a Chinese consortiumacquired 15% of CBMM for US$1.95B

Niobium market supply

© Sources: Niobec (IAMGOLD) 9

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Niobium Industry

29%

24%

24%

10%

13%

Structural

Pipe

Auto

Stainless

Other

Current use of ferro-niobium

• 90% of Nb used in standard grade ferro-niobium for the production of highstrength low alloy (HSLA) steels

• Nb HSLA steels are primarily consumed in structural and pipe, but the autoindustry is becoming an increasing consumer

© Sources: Niobec (IAMGOLD) 10

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Niobium Applications

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REE Industry

Source: IMCOA

Catalysts15%

Glass6%

Polishing15%

Metal Alloys16%

Magnets22%

Phosphors8%

Ceramics6%

Other12%

REE DEMAND 2016

• Total REE consumption 2012 115,000twith annual growth estimated at 5-10% to be 162,000t in 2016

• China produces about 90% of worldsupply and consumed about 65%,with Japan 15% and the US 14%

• The REE industry is “imbalanced” withpotential oversupply of light rareearths (Ce & La) and undersupply ofheavy rare earths

• Neodymium, europium, terbium,dysprosium and yttrium areconsidered to be in critical supplythrough to at least 2020

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REE Supply - Demand

Source: IMCOA© 13

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REE Prices

$- $20 $40 $60 $80

$100 $120 $140 $160 $180

4Q2010

2Q2011

4Q2011

1Q2012

2Q2012

3Q2012

4Q2012

1Q2013

US$/kg

DZP LREE US$/kg

DZP LREE DZP DFS LREE Concentrate

$-

$50

$100

$150

$200

$250

$300

$350

4Q2010

2Q2011

4Q2011

1Q2012

2Q2012

3Q2012

4Q2012

1Q2013

US$/kg

DZP YHREE US$/kg

DZP YHREE DZP DFS YHREE Concentrate

DZP Light REE mix DZP Heavy REE mix

Source: IMCOA© 14

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Rare Earth Applications

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DZP Process Flow Sheet

Demonstration Pilot Plant – established 2008 ANSTO – Aust. Nuclear Science & Technology Organisation Process – unique & advanced Optimization – ongoing

Simple open cut mining operation Crushing and grinding Sulphuric acid leach whole of ore Solvent extraction, separation

& refining Chemical precipitation Zirconium products Niobium products Heavy RE product Light RE product

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DZP Demonstration Pilot Plant

Operating at ANSTO since 2008

DPP Filtration, PLS, SX, Zr and Nb recovery

Zirconium refining and precipitation Reverse osmosis and water recycle

Y and HREE refining and recovery

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Zirconium (Zr) • Leading chemical company to develop applications and markets in Asia for zirconia produced by DZP

• European manufacturer/trading company to market DZP products in Europe and North America

• Ceramic colours laboratory developed in Perth produce test products for ceramic tile industry

Niobium (Nb) • European alloy manufacturer JV to produce and market ferro-niobium

• Test work for tantalum recovery

Light rare earths Heavy rare earths

• Japan’s Shin-Etsu Chemical toll treatment JV for separation and sale

DZP Pathway to Market

AZL MoU’s and Agreements to secure 100% of output

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DZP Product Output

70%

31%

9%

16%

18%

24%

4%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Production RevenueZrO2 Nb metal LREO concentrate HREO concentrate

911t$149.4M

$118.7M

$81.5M

$153.9M

3,997t

1,967t

15,827t

A$503.5M22,702T

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DZP Operating Costs

Annual operation costs at 1Mtpa steady state A$214M

• Polymetallic deposit and integrated flow sheet makes it difficult to assign costs to specific products

• For total output, cost ~US$8.80/kg

• On a proportional revenue basis:Zirconium ~US$ 3.90/kgNiobium ~US$16.20/kgLREE ~US$11.45/kgHREE ~US$68.66/kg

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DZP Feasibility Study

DUBBO ZIRCONIA PROJECT

Financial Summary for 20 year life in A$

Project Capacity 1,000,000 tonnes pa

Capex – Plant $396.8M

Sulphuric Acid Plant $116.6M

Infrastructure + Owners $253.4M

SUB TOTAL $766.8M

EPCM $63.5M

Contingency (20%) $166.1M

TOTAL $996.4M

Annual Revenue $503.5M

Annual Operating Costs $213.5M

Annual EBITDA $290.0M

IRR* 19.3%

NPV* $1,235M

* 20 year life, pre-tax, 8% discount rate

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DZP Infrastructure

• 20km from Dubbo (43,000 pop)

• Access to skilled local labour

• 250 permanent workforce

• Access to State power and gas

• Land and water being secured

• Waste to be stored onsite

• EIS to be lodged June 2013

• Production expected Q1 2016

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DZP EnvironmentAlkane has a 25 year history of sustainable mine management

EIS addresses all environmental aspects

Water• 70% recycle of process water currently achievable• Limited groundwater aquifers – minimal impact• Water secured from existing water licences

Power• The sulphuric acid plant will generate (cogen) about 70% of power onsite

Fauna • Farming/industry co-habitation: Sheep/cattle farming across available farming land• Endangered species identified and potential impacts mitigated

Naturally occurring radioactive material (NORM)• Waste salts remain onsite and contains less radioactivity than ore.

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DZP Community Inclusion

Community involvement is core to our work• Regular community consultation’s and newsletters

• RTO’s invited to Alkane demonstration pilot plant to discuss job training/planning

• Community feedback and discussion encouraged

• Local aboriginal community engaged

• Local MP and Council very supportive

• Employment will be sourced locally

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DZP Financing

• $1 billion DZP finance package being arranged by:o Credit Suisse (Australia)o Sumitomo Mitsui Banking Corporationo Petra Capital

• Finance sources:o Possible sale of a strategic minority stake in DZPo International Government funding (ECA)o Commercial debt facilityo Public equity raising

• 12 months timeline

• Coincides with final project approvals, allowing construction to commence in Q2 2014.

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DZP Major Milestones

Major Milestones 2013 2014 2015 2016

Environmental Impact Statement

Project Approval Process

Project Financing Program

EPC / EPCM tender award

Detailed design / Long lead orders

CONSTRUCTION

PRODUCTION

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Financial

Shares – 372,539,000 Market Capitalisation – A$120M (21 June 2013) Cash & Investments – A$120M (31 May 2013) 2012 Financials

Revenue A$96.7M Profit A$66.5M Earnings per share A$0.19 Net Assets A$236.4M

Debt – nil Share turnover – ~0.5M / day current 12 Month Low/High – A$0.28/$1.14 Top 20 – 58% Codes – ALK (ASX)

– ANLKY (OTCQX )

Equity

Major Shareholder: Abbotsleigh (Gandel Metals) – 25%Fidelity Investments – 5%

Financial and Equity

As at 30 April 2013

Source: ASX ALK v LYC

Domestic Institutions 20%

Foreign Institutions 14%

Directors and management

26%

Retail and others 34%

Hedge Funds 6%

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• Cash flow from Tomingley Gold Project early 2014 - $20-25Mpa at current spot gold

• This cash flow supports all Alkane’s activities and provides DZP funding options

• Dubbo Zirconia Project – strategically important zirconia and heavy rare earth production

• Large & diverse resource (80+ years life) – zirconium, niobium and rare earths. Importantly rare earth output is “non-impacting” accommodated by current demand

• Proven flowsheet (5 years demonstration plant)

• Strategic partners for financing and product off-take

• DZP Operational in 2016

• Substantial cashflows - $250Mpa (based on 20 year DFS) 2017

The Bottom Line

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Dubbo Zirconia Project

www.alkane.com.au

View a video summarizing the DZP at: http://www.alkane.com.au/index.php/media-centre/videos

The DZP is a world class project providing a strategic and alternate supply of zirconium, niobium and rare earths for rapidly developing international

“Future Metal” markets for many years.

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Disclaimer

DisclaimerThis 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 trend projections. Such statements are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors which are beyond the control of Alkane Resources Ltd. Actual results and developments may differ materially from those expressed of implied by these forward looking statements depending on a variety of factors. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.

This document has been prepared in accordance with the requirements of Australian securities laws, which may differ from the requirements of United States and other country securities laws. Unless otherwise indicated, all ore reserve and mineral resource estimates included or incorporated by reference in this document have been, and will be, prepared in accordance with the JORC classification system of the Australasian Institute of Mining, and Metallurgy and Australian Institute of Geosciences.

Competent PersonThe information in this presentation that relates to mineral exploration, mineral resources and ore reserves is based on information compiled by Mr D I Chalmers, FAusIMM, FAIG, (director of the Company) has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ian Chalmers consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears.

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DZP Resource & Reserves

These Mineral Resources are based upon information compiled by Mr Terry Ransted MAusIMM (Alkane Chief Geologist) who is a competent person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Terry Ransted consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The full details of methodology were given in the 2004 Annual Report.

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 0.75

Dubbo Zirconia Project – Mineral Resources

Dubbo Zirconia Project – Ore Reserves

Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REODeposit (Mt) (%) (%) (%) (%) (%) (%)Proved 8.07 1.91 0.04 0.46 0.03 0.14 0.75

Probable 27.86 1.93 0.04 0.46 0.03 0.14 0.74

Total 35.93 1.93 0.04 0.46 0.03 0.14 0.74

These Ore Reserves are based upon information compiled by Mr Terry Ransted MAusIMM (Alkane Chief Geologist) who is a competent person as defined in the 2004 Edition of the Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves. The reserves were calculated at a1.5% combined ZrO2+Nb2O5+Y2O3+REO cut off using costs and revenues defined in the notes in ASX Announcementof16 November 2011. Terry Ransted consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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