Quarterly Activities Report to 31 March 2020

Alkane Resources is pleased to provide the Q3FY20 Activities Report. Please find below a summary of activities.

Tomingley Gold Operations

Now producing steady-state stoped ore from the underground.
Gold production on forecast at 5,723 ounces.
Site operating cash costs were A$995/ounce with AISC of A$1,346/ounce.
Gold sales of 3,864 ounces for revenue of A$8.2M at an average price of A$2,126/ounce.
Guidance for FY20 is unchanged at 30,000 to 35,000 ounces of gold at an AISC of A$1,250 to A$1,400 per ounce.
The Company is expediting the move to mine development of the Roswell and San Antonio prospects.

Resource drilling continued at the Roswell and San Antonio prospects.
Drilling completed at the San Antonio Deposit. Modelling (see ASX announcement 20 April 2020 for detail) demonstrates an Inferred Mineral Resource (using a 0.5g/t gold cut-off) of 7.92 million tonnes grading 1.78g/t gold (453,000oz).
Resources at Tomingley Gold Operations (TGO) and the exploration tenements to the immediate south including the San Antonio Deposit are now in excess of one million ounces.
Results from the follow-up core program (for five holes ~5,000m) at Boda were received during the quarter and included the spectacular KSDD007 (ASX announcement 23 March 2020):
- KSDD007 1,167m @ 0.55g/t gold, 0.25% copper from 75 metres
- incl 502m @ 1.00g/t gold, 0.45% copper from 768 metres
- incl 376m @ 1.30g/t gold, 0.56% copper from 768 metres
- incl 96.8m @ 3.97g/t gold, 1.52% copper from 768 metres

Cash, bullion and listed investments position totalled A$81.9M.
Shareholdings remained 13.0% of ASX listed gold developer Calidus Resources Ltd (ASX:CAI) and 15.0% of ASX listed gold developer Genesis Minerals Ltd (ASX:GMD) at end of March quarter.
ALK has been granted permission by the ASX to change its ASX classification from a “mining exploration entity” to a “mining producing entity” as defined in Listing Rule 19.12. As a result, ALK is no longer lodging Appendix 5B Quarterly Cash Flow reports.
Alkane’s OTCQX Listing (ANLKY) using American Depository Receipts (ADRs) has been terminated. Under the terms of the Deposit Agreement with the sponsor, BNY Mellon, shareholders have until 15 January 2021 to surrender their Alkane Resources ADRs for delivery of the underlying shares. Alkane shares continue to be quoted on OTCQX as ALKEF.

Appointed Mr David Woodall as Managing Director of Australian Strategic Materials Limited (ASM), a wholly-owned subsidiary of Alkane (ASX announcement 10 February 2020).
Construction of the commercial-scale pilot plant as part of the investment in Clean Metal Processing Technology with Ziron Tech of South Korea continued.
Consultation with regulators regarding the demerger and listing of ASM, together with the key transaction documents is substantially completed.
Alkane’s Board remains committed to the demerger of ASM, but is reviewing the timing of the demerger on a month by month basis given the very turbulent market conditions.