Page 1

ASX and MEDIA RELEASE 25 February 2021 ALKANE RESOURCES LTD ABN 35 000 689 216 Alkane Delivers Half - Year Profit After Tax of A $ 38.8 Million Alkane Resources Limited ( ASX : ALK , the Company ) is pleased to report a $ 38m Half - Year profit after tax , driven by a 90 % increase in gold production at Tomingley and the successful demerger of Australian Strategic Minerals . Highlights • The successful demerger and listing of Australian Strategic Materials ( ASX : ASM ) . • • • • A company profit after tax of A $ 38.8 million driven by excellent production and cost performance at Tomingley Gold Operations , and the profit recorded from the successful demerger of Australian Strategic Materials . Production of 28,559 ounces of gold at an all - in sustaining cost ( AISC ) of A $ 1,358 per ounce . Completion of the infill drilling program at Roswell and San Antonio . Feasibility plans that include both open - cut and underground mines at Roswell and San Antonio are expected to be finalised in the coming quarter . Progressed the securing of approvals with the NSW Government for the development of the Roswell and San Antonio deposits . Continued the Boda drilling program with mobilization of a second rig to site . Results received ( see ASX Announcements 11 November and 18 December 2020 ) show a sub - vertical elliptical zone of significant gold - copper mineralisation , indicative of a large alkalic porphyry system of 400 metres width that is over 1,000 metres of north - south strike length , and more than 1100 metres vertically . Execution of facility documentation with Macquarie Bank Limited to provide a A $ 20,000,000 working capital facility ( see ASX Announcement 17 December 2020 ) . On 31 December 2020 the company's cash , bullion , and listed investments totaled A $ 82.3 million , with A $ 33.3 million in cash , bullion on hand at a fair value of A $ 2.7 million and A $ 46.3 million of listed investments at market value . Guidance for FY2021 increased to 47,000 to 52,000 oz at an AISC of A $ 1,450 to A $ 1,600 per ounce . 1/3 Alkane Resources Ltd - Half Year Interim Financial Results FY2021 25 February 2021