#1Alara resources Alara Resources Limited A.B.N. 27 122 892 719 Level 14, The Forrest Centre 221 St Georges Terrace Perth Western Australia 6000 Telephone Facsimile +61 8 9214 9787 +61 8 9322 1515 Web | www.alararesources.com Email [email protected] ASX/MEDIA RELEASE 15 October 2012 Investor Presentation Perth: Australian-based minerals exploration and development company Alara Resources Limited (ASX: AUQ) (Alara) is pleased to attach a copy of an Investor Presentation. For further information, please contact: Shanker Madan Managing Director T +61 8 9214 9787 E [email protected] - ENDS - ABOUT ALARA RESOURCES Alara Resources Limited (ASX: AUQ) is an Australian-based minerals exploration and development company with a diverse portfolio of projects in Saudi Arabia, Oman, Chile, and Australia. With a strong pipeline of advanced and early stage projects, Alara is moving towards establishing itself as an emerging base and precious metals development company. For more information, please visit: www.alararesources.com Page 1 of 33#2Alara Resources Limited Alara resources Investor Update Presentation October 2012 ISTED ON www.alararesources.com ASX ASX: AUQ#3Project Locations Khnaiguiyah (50%) Zinc-Copper, Saudi Arabia Washihi (75% EARN IN) Copper-Gold, Oman El Quillay Project (Chile) Daris (50%) Copper-Gold, Oman Khnaiguiyah & Marjan Projects (Saudi Arabia) Washihi, Daris & Awtad Projects (Oman) Perth Alaa resources Marjan (50%) Alara Resources Limited (ASX:AUQ) is an Australian based mineral exploration and development company with a diverse portfolio of projects in Saudi Arabia, Oman, and Chile. With a strong pipeline of advanced and early stage projects, Alara is establishing itself as a Base and Precious Metals exploration and development company. Zinc-Gold-Silver, Saudi Arabia © Alara Resources Limited Awtad (70% EARN IN) Copper-Gold, Oman www.alararesources.com El Quillay (70% EARN IN) Copper-Gold, Chile 2#4Alara offers attractive base metal exposure Alaa resources Khnaiguiyah Zinc Copper Project (50%) • • Draft DFS report received. Review is in progress DFS completion expected in Q4 2012 80,000tpa zinc production targeted to commence into forecast strongly rising zinc prices Saudi Arabia offers significant investment and operational benefits Oman (+50-75%) • Initial JORC Resource¹ at Washihi Project: • • 6.9Mt Inferred @ 0.76% Cu and 0.16g/t Au • 2.1Mt Indicated @ 0.70% Cu and 0.17g/t Au Geophysics indicates open mineralisation +5,000m drilling completed, additional 2,000m drilling in progress • Scoping study completed for a 500,000tpa throughput mining and beneficiation operation at Washihi Alara has an experienced management team capable of bringing these projects into production. 1 Refer to ASX market announcement dated 15 October 2012: Initial JORC Resource - Washihi Project in Oman O Alara Resources Limited www.alararesources.com 3#5Company Profile Directors • 40+ years mining experience lan Williams AO Chairman • • Hamersley Iron, Rio Tinto, Century Zinc & Pasminco Awarded Order of Australia for services to Indigenous communities Shanker Madan 35+ years mining industry experience Managing Director • BHP, Rio Tinto & Hamersley Iron Alaa resources Stock ASX Code AUQ Market Cap (3 October 2012) $61M Issued Capital Shares Options Cash (30 June 2012) 210.5M 41.25M $10.9M Top Shareholders Antares Equities (previously Aviva) 10.0% Northcape 9.0% Colonial 7.5% Kinetic 7.4% 8.7% 5.7% Doug Stewart • Territory Iron, Teck Corporation, NM Rothschild and Sons, Australia 42+ years mining industry and capital markets advisory experience Acorn Contango AUQ Daily Line Chart [Close] 0.400 • William Johnson O Alara Resources Limited 20+ years experience in senior management and executive roles in public companies in Australia, New Zealand and South East Asia www.alararesources.com April May June July August September Oct 0.360 0.320 -0.280 4#6Management Team Management Team Shanker Madan Managing Director 35+ years mining industry experience with BHP, Rio Tinto & Hamersley Iron. Alara resources Maxwell Hobson General Manager, Projects 35+ years in mining, metals and heavy industrial engineering project management and EPCM. Previous experience with FMG, Alcoa, Rio Tinto, Strike Resources and past principal of Aurecon Consulting Group. Ganesh Krishnamurthy General Manager, Exploration 20+ years, with 4 years in exploration and development in Oman, 8 years with Rio Tinto Iron in Australia. Juan Carlos Toro Taylor General Manager, Chile 35+ years experience mainly in copper, gold and iron ore in South America and South Africa. Previously Senior Geologist with Codelco (Chile). AV Sthapak Exploration Manager (Oman) 20+ years exploration and feasibility experience in Oman and Australia. Discoverer of the Year award, Rio Tinto 2010. Ravi Sharma Resources Consultant (Saudi Arabia) Mike Efthymiou Metallurgical Consultant (Saudi Arabia) 20+ years exploration and mining. Previously Chief Geologist with Barrick at 350,000oz/year Bulyanhulu gold mine, Tanzania. Specialist metallurgist with 35+ years in metallurgical operations in senior roles, feasibility studies, metallurgical optimisation/development studies with OK Tedi Mining, BHP Billiton Olympic Dam Operations, Freeport MacMoran Grasberg Operations Indonesia, Mount Isa Mines Operations, Zambia Copper Belt. O Alara Resources Limited www.alararesources.com 5#72650000 2660000 2670000 Saudi Arabia - Khnaiguiyah Project (50%) Alaa resources 2680000 2690000 470000 480000 490000 500000 Khnaiguiyah Licence Areas | Khnaiguiyah Mining Licence Khnaiguiyah Exploration Licence Alara Alara Resources Limited Khnaiguiyah Zinc-Copper Project 470000 Projection: UTM Zone 38N Datum: WGS 1984 480000 O Alara Resources Limited Umm Al Wibran Khnaiguiyah West 66 Sq Km 25 Sq Km Umm Hijjah 66 Sq Km 510000 520000 530000 N Khnaiguiyah North 35 Sq Km Khnaiquiyah Mining 5.5 Sq Km Khnaiguiyah East 67 Sq Km Khnaiguiyah South 30 Sq Km Marjan-1 87 sq km Mutiyah 84 Sq Km A Marjan-2 86sq km Marjan-3 86sq km Mineralised Zone 1 Mineralised Zone 2 5.462 Sq Km W 2680000 2690000 Khnaiguiyah Licence Areas (Sq Km) Mineralised Zone 3 Umm Hija Mutiyah 30 Mineralised Zone 4 490000 500000 $10000 Kilometers Khaaguiya Mining Licence Khaaiguiyah Exploration Licence Major Road Kilometres 0 5 10 20 www.alararesources.com 06 Alaa ALARA RESOURCES LIMITED Khnaiguiyah Zinc-Copper Project Khnaiguiyah Licence Paleozoic Cover Rocks Carbonatized Shear Zone Mineralised Zone Iraq Kuwaite Iran Khnaiguiyah Project Qatar UAE (Dubai) Saudi Arabia Yemen Eritrea Oman g 6#8Joint Venture Partner - Manajem (50%) Management Team Engr. Mohamad Abdalah Al Hatlani Founder/Board Member Chairman Senior Consultant • Founder and Owner of: • Delta Consulting Group Metals Corners Holding Co. · Naga Metals Co. Nassaf Metals Co. Company Profile Alara resources United Arabian Mining Company (Manajem) was established in June 2004 and is comprised of a group of successful engineers and businessmen with experience in the Industrial, Construction and Engineering fields. Engr. Mohammad Hussain Al Assaf Board Member Mr. Nassir Ali Al Agel Board Member Executive Director Finance & Administration Engr. AbdulRahman Abdalah Al Hatlani Founder/Board Member Consultant O Alara Resources Limited Founder and Owner of: • Andas Telecommunication Est. • Rick Trading Est. Indipco Ductile Pipes Co. Founder and Owner of: Metals Corners Holding Co. • Naga Metals Co. Nassaf Metals Co. Partner: • Delta Consulting Group مناجم M NAJEM www.alararesources.com 7#9Timetable Finalise formal JV agreements Mining Licence granted to project* Establish office in Riyadh Obtain Environmental permit DFS completion, including Zone 1 modelling Drill, assay, density validation, metallurgical sample ㅁ and Geotech holes ם Complete definitive test work on representative samples from new core holes in Mineralised Zones 2 and 3 (includes regrind and floatation to improve recoveries) Upgrade non-JORC Code compliant estimation to JORC standard Mine design, optimisation and scheduling studies Make changes to plant design as necessary Secure water land for the project* Financing ☐ Design & construction Commissioning & production *Transfer to Joint Venture in progress O Alara Resources Limited Commenced Completed D Draft www.alararesources.com Oct Nov Dec uer Feb Mar Apr 2011 Sep Oct ΛΟΝ Dec Jan ממון Feb Mar Apr 2012 Aug Sep Oct Nov NOV Dec Jan Feb Mar Apr Draft received, revision in progress 8 2013 Sep Oct ΛΟΝ 2014 Dec Jan Feb Mar Apr Alaa resources#10DFS Status • Draft DFS report received. Review is in progress • DFS comprises 17 volumes and approximately 3,000 line items of bill of quantities • Initial review indicates that: • Plant, equipment and mine designs are fundamentally sound Alaa resources • • • Mine scheduling required further optimisation including the potential to add Zone 1 to the mine schedule Much of the 'costing estimates' were based on Australian and other international cost structures with only a small portion based on actual Saudi Arabian inputs Review process being conducted by the Company and consultants have identified some areas requiring further examination. Local cost inputs have since been obtained O Alara Resources Limited www.alararesources.com 9#11Attributes - Country & Historical Work Country • • • • • • • Tax -20% Corporate (nil personal tax rate) Royalties - nil SIDF-75% debt available at sub-LIBOR rates with long 10 year tenure (Saudi Industrial Development Fund) - Ownership 100% permitted Profits & Capital - 100% repatriation. Nil import duties for CAPEX Tenure certainty - exploration to mining - Roads bitumen highway & road to mine gate Power - 33KVA power line to site Water - 15km to aquifer (low salinity) Fuel <US$0.09/L (diesel) Two hours from Riyadh on the Riyadh-Jeddah Highway 2 Historical Work - Khnaiguiyah Project² • • • • Drilling 45,000m drilled via 345 holes - Mining - 2 deep shafts sunk for bulk testing Metallurgy - testing by BRGM & independent consultants Feasibility studies - by independent consultants (incorporating pit design work & financial modelling) Alara resources Alara ASX market announcement dated 5 October 2010 and entitled "Project Acquisition - Khnaiguiyah Zinc Copper Project in Saudi Arabia" BRGM Geoscientists 1993, Khnaiguiyah Zinc-Copper deposit - pre-feasibility study - 1,2 and 3, Saudi Arabian Directorate General of Mineral Resources Technical Report BRGM TR 13- 4, 651p, 209 figs, 171 tables, 78 appendices and 23 photo plates O Alara Resources Limited www.alararesources.com 10#12Updated JORC Resource Alaa resources Results from further drilling have led to a -30% upgrade³ in the JORC Measured and Indicated Zinc and Copper Resource at the Khnaiguiyah Project from the maiden JORC Resource4 . - • Resource Statement³ – focused on lifting the category on Zones 2 & 3 (so as to not delay BFS) Three Domains - Domain 1 (zinc only), Domain 2 (zinc & copper) and Domain 3 (copper only) Table 1: JORC Measured and Indicated Zinc and Zinc Copper Resources at Khnaiguiyah JORC Resources (at 1.5% Zn cut-off grade) Mineralised Zones Tonnes (Mt) Zinc % Copper % Measured and Indicated – October 2012 - 1, 2 and 3 25.33 4.03% 0.16% Measured and Indicated – February 2012 2 and 3 20.09 4.24% 0.15% Table 2: JORC Measured and Indicated Copper Resources at Khnaiguiyah JORC Resources (at 0.0% Cu cut-off grade) Mineralised Zones Tonnes (Mt) Copper % Zinc % Measured and Indicated - October 2012 Measured and Indicated 5 - February 2012 1, 2 and 3 6.67 0.69% 0.67% 2 and 3 4.93 0.77% Not estimated 3 Refer to ASX market announcement dated 12 October 2012: JORC Resource Upgrade for Khnaiguiyah Zinc-Copper Project Refer to ASX market announcement dated 21 February 2012: Maiden JORC Resource - Khnaiguiyah Zinc Copper Project - Saudi Arabia Cut-off grade at 0.2% Cu 4 5 LO O Alara Resources Limited www.alararesources.com 11#13Alara resources Zinc Prices Forecast Targeting commencement of Zinc Production from Khnaiguiyah into a strongly rising market 3500 3000 2500 2000 $/T 1500 1000 500 Zinc Price Forecasts Khnaiguiyah Targeting 70,000 tpa Zinc production - - 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: IRESS, CRU 2013 2014 2015 2016 2017 O Alara Resources Limited www.alararesources.com LME cash price CRU forecast 12#14Achievements Rapid progress in <1.5 years! ✓ Projects secured - October 2010 (post successful Manajem ✓ ✓ negotiations) Mining licence - granted December 2010 Environmental licence - granted June 2012 ✓ JORC Resource – announced February 2012 - Team - established in Saudi Arabia & Perth head office Rigs 3-6 drilling rigs secured & active ✓ Drilling - +35,000m drilled since Feb 2011 (290 holes), plus 45,000m drilled historically (345 holes) Mineralisation - extensions defined Sterilisation drilling work completed - Project site and construction camp Power line O Alara Resources Limited Alara resources Sealed Road connecting project site to Al Quwaiyah 20min. from site on the high way to Riyadh Geotechnical work - completed with further work underway Water water bore drilled & pump testing underway. Agreement reached to procure land for water Fauna & Flora - studies completed (16 reptile species, 17 bird species & 44 flora species identified) - Metallurgy completed, review underway. Coarse grind of P80 < 106μm, delivered 87% recoveries for Cu and 91.5% for Zn, at concentrate grades of around 30% for Cu and 57% for Zn. Recoveries may drop marginally below zinc grades of 4.5%. Moderate hardness (14kWh/t energy). Further work is being undertaken by ALS Ammtec to complete the 2Mtpa case www.alararesources.com 13#15Resource Outlook - Zone 1 Zone 2 Legend . KMC drill hole • Historic drill hole Mineralised zone Mineralisation Mineralisation extension Fault Afghanistan Zone 3 Israel Jordan Iraq -Kuwait Khnaiguiyah Project Iran Pakistan Bahrain Egypt 1Y Qatar Saudi Arabia UAE (Dubai) Oman Sudan Eritrea Yemen Ethiopia Djibouti Somalia Khnaiguiyah Zinc-Copper Project ALARA RESOURCES LIMITED Alaa resources Resource open along strike (South) Zone 4 Metres 0 150 300 600 900 1,200 © Alara Resources Limited www.alararesources.com Alaa resources . • • Further upgrades ahead Drilling cut-off (for resource) - September 2011 Data cut-off (for resource) - November 2011 Metres drilled since cut-off dates +12,000m in Zones 1 & 2 • Zone 1 - Mineralisation . • drilled on 50x50m grid. Shallow with low strip ratio. Extends for 600m long, generally 300m wide, average 8-10m thick and open to the north and south Zone 2 - extended a further 400m NE since resource announced on 21 February 2012 was calculated Zone 3 - open to the south • Zone 4 - drilled by BRGM and awaits drilling so as to upgrade former data 14#16Zones 1 & 2 - Upgrades Ahead Zone 1 NORTH 000000 1007200 Legend Zone 1 (KZ1) Mineralitation open KMC drillholes, present announcement KMC drillholes, previously reported KMC drillholes, results awaited Historic holes Zone 1 Zone 2 already extended 400m NE NORTH 507450 507800 547950 508250 508-400 Zone 2 (KZ2) Extension of mineralisation Legend Alaa resources KMC drillholes present announcement KMC drillholes previously reported KMC drillholes results awaited Historic holes Cu resource outline Zn resource outline Mineralisation open KIDD12 222 KID011 203 KID012 221 K10012 220 Section 17 K10012 21 K10012 215 10012 216 Section 9 KIDD12.245 Mineralisation open 110 220 508750 Projection: UTM Zone N Datum: WGS 1954 500900 Drilling Highlights: Hole K1DD12_221 Hole K1DD12_222 Hole K1DD12_245 from 24-30.8m: from 63-66m: from 25.45-34m: including 25.45-28m: and 42-47.1m: including 45-46m: O Alara Resources Limited 1007200 Su resource cutline- Zn resource outline 587450 Section 11 20012 240 120 K20012 233 KID012 250 K70012 226 Projection: UTM Zone 38N 547800 307950 Datum Was 1984 508100 240 mineralsation open 20012 238 K20012 237 508250 508-440 K20012,238 Drilling Highlights: Hole K2DD12_233 Hole K2DD12 237 Hole K2DD12_239 6.8m at 6.02% Zn; 0.49% Cu 3m at 7.51% Zn; 0.95% Cu 8.55m at 10.91% Zn; 0.19% Cu 2.55m at 21.80% Zn; 0.34% Cu 5.1m at 10.97% Zn; 0.21% Cu 1m at 31.56% Zn; 0.70% Cu Hole K2DD12_240 Hole K2DD12_255 from 80.8-86m: from 157-162m: from 177-188m: from 91-101m: from 32-41m: Hole K2DD12_258 from 59.4-69m: Hole K2DD12_237* from 164-168m: Hole K2DD12_238* Copper-rich zone from 193.4-203m: 5.2m at 7.15% Zn; 0.14% Cu 5m at 8.40% Zn; 0.38% Cu 11m at 6.42% Zn; 0.12% Cu 10m at 10.90% Zn; 0.31% Cu 9m at 7.7% Zn; 0.3% Cu 9.6m at 7.1% Zn; 0.1% Cu 4m at 1.09% Cu 9.6m at 1.47% Cu www.alararesources.com 15#17Zones 3 & 4 - Upgrades Ahead Zone 3 open to the south Zn resource outline Zone 3 (KZ3) K30011 044 Legend KMC drillholes, present announcement KMC drillholes, previously reported KMC drillholes, results awaited Historic holes Cu resource outline Zone 4 remains undrilled by JV Co. Zone 4 (KZ4) • Legend Alaa resources Zone 4 Zn & Cu resource outline Historic holes Cu resource outline K30011 052 Section 15 Section 14 30011 047 Section 8 Section 7 Mineralisation open K30011 037 ° 50 100 200 Projection: UTM Zone 38N Datum WGS 1984 WHN Zn resource outline Drilling Highlights: Hole K3DD11_037 Hole K3DD11 044 Hole K3DD11_052 from 78-82m: from 187-209.1m: and 214-221m: from 20-31m: 4m at 11.02% Zn; 0.07% Cu 22.1m at 6.87% Zn; 0.14% Cu 7m at 6.69% Zn; 0.65% Cu 11m at 5.62% Zn; 0.22% Cu O Alara Resources Limited Inferred Zn & Cu resource outline Projection: UTM Zone 38 Datum WGS 1964 www.alararesources.com 16#18Mineralisation - Zone 2 Mineralisation in Zone 2 is flat lying and shallow, deepening to the east 900 Elev. Easting -200 Section 11 -150 Ground level Pit Limit -100 -50 $2.83 KZ2_315 KZ2_314 KZ2_313 KZ2_312 Z2_311 KNP 24 50 Alara 100 ALARA RESOURCES LIMITED Khnaiguiyah Zinc-Copper Project KZ2 351 Ground level Pit Limit Alaa resources S11 Drill hole intersections: KZ2 311: 8m @ 4.6% Zn, 0.5% Cu KZ2 351: 8m @ 7.5% Zn, 0.3% Cu 18m @ 7.2% Zn, 0.1% Cu KZ2_312: KZ2 313: 17m @ 18% Zn, 0.3% Cu KZ2 314: 18m @ 6.5% Zn, 0.25% Cu KZ2 315: 24m @ 5.5.% Zn, 0.2% Cu 750 Mineralised Zone 2 Section Profile 11 Host rock Mineralisation Mineralisation intercept Hole Pit limit 37.5 75 150 Metres Copper grade Zinc grade O Alara Resources Limited 47.92 45.0 009 $9.50 Scale: 1:1,500 Mineralised zone Hanging wall / footwall www.alararesources.com Section 11 e + 17#19Alaa resources Mineralisation - Zone 3 Mineralisation is thick, high grade, open and has good continuity S7 Drill hole intersections: Mineralised Zone 3 is thicker and close to the surface on the east limb but generally Copper rich and towards the west Elev. Easting -50 Section 7 Pit limit Ground level 80 Mineralised Zone 3 Section Profile 7 Host rock Mineralisation Dyke Fault Mineralisation intercept Pit limit Hole 50 100 150 200 250 K97_277 106.80 K97 235 0 25 50 100 Metres 87 K97 198 Copper grade Zinc grade Mineralised zone Hanging wall / footwall Alara 300 ALARA RESOURCES LIMITED Khnaiguiyah Zinc-Copper Project Pit limit K97 136: 4m @ 3.58% Zn, 0.27% Cu 3m @ 3.93% Zn, 0.19% Cu 10m @ 3.06% Zn, 0.05% Cu K97_197: 2m @ 3.1% Zn, 0.02% Cu K97 198: 5m @ 3.99% Zn, 0.21% Cu K97 199: 2m @ 4.56% Zn, 0.36% Cu 2m @ 7.89% Zn, 0.09% Cu K97 200: 2m @ 3.6% Zn, 0.17% Cu 7m @ 0.5% Zn, 3.5% Cu K97 135: 5m @ 5.91% Zn, 0.18% Cu 17m @ 23.8% Zn, 0.71% Cu K97 201: 3m @ 6.39% Zn, 0.09% Cu 25m@ 18.68% Zn, 0.54% Cu K97 277: 25m @ 3.07% Zn, 1.1% Cu K97 235: 16m @ 2.52% Zn, 0.41% Cu KHNC 49: 7m @ 3.95% Zn, 0.2% Cu K97 202: 2m @ 10.58% Zn, 0.01% Cu 2m @ 4.43% Zn, 0.02% Cu 29m @4.59% Zn, 0.03% Cu KHNC 64: 3.5m@ 10.95% Zn, 0.32% Cu 11.2m @ 5.66% Zn, 0.21% Cu KN_3: Section 8 6.97m @ 4.51% Zn, 0.18% Cu 4m @ 1.37% Zn, 1.1% Cu 6.75m @ 5.13% Zn, 0.24%Cu 9.2m@ 0.3% Zn, 1.73% Cu O Alara Resources Limited www.alararesources.com 18#20009 700 7'50 800 Mineralised Zone 3 Section Profile 14 Host rock Mineralisation Mineralisation intercept Hole Pit limit 098 Section 14 Ground level Mineralisation - Zone 3 (cont'd) Pit Limit Easting -50 0 50 100 150 200 250 300 350 400 56.0 K97_263 100.2 170.0 230.35 50 100 200 Metres Copper grade Zinc grade Mineralised zone Hanging wall/ footwall 240.55 154.22 216.63 KHNC_76 K97_151 KHNC_77 17_130 K97_174 K97_275 Scale: 1:2,115 O Alara Resources Limited www.alararesources.com K97_101 K97_276 K97_110 Alara resources ALARA RESOURCES LIMITED Khnaiguiyah Zinc-Copper Project Pit Limit Ground level 700 S14 Drill hole intersections: K97 263: 23m @ 4.4% Zn, 0.08% Cu KHNC 76: 8.31m @ 13.5% Zn, 0.37% Cu K97 151: 16.78m @ 6.18% Zn, 0.31% Cu KHNC 77: 61.7m @ 9.07% Zn, 1.22% Cu 2.6m @ 5.14% Zn, 0.05% Cu K97 130: 4m @ 3.67% Zn, 0.3% Cu K97 110: 9m @ 3.1% Zn, 0.14% Cu 12m @0.06% Zn, 1.89% Cu K97 117: 4m @ 4.07% Zn, 0.04% Cu 3m @0.06% Zn, 0.61% Cu K97_101: 64.55m @ 9.39% Zn, 0.2% Cu HOW Section 15 19 Alaa resources#21507875 Mineralization extension (400 m) -507750 508000 Alaa resources 3D Model - Zone 2 Zone 2 - Flat & shallow. Zinc mineralisation overlays copper mineralisation -2687000 2686875 -2686750 2686625 2686500 2686375 2686250 -268612 260000 2685875 750 625 507750 507875 - 508000 508125 O Alara Resources Limited -50 - 508250 508375 750 625 2687000 2686875 2686750 2686625 2686500 2686375 2686250 2686125 Zinc Mineralization Copper Mineralization 2686000 .508250 75 www.alararesources.com 20 20#22Alara resources 3D Model - Zone 3 Structurally thick & continuous mineralisation (2% Zn cut-off envelope shown below) >2% Zinc O Alara Resources Limited 100 Plunge +15, Looking North 200 300 www.alararesources.com 24 21#23Plant Flow Sheet ROM BIN GRIZZLY ROMBIN PRIMARY CRUSHER APRON FEEDER PRIMARY CRUSHER GRIZAY PROCESS WATER COPPER CLEANER SCAVENGER CELLS OFF) شركة الكنيقية لللمدين المحدودة Khnaiguiyah Mining Co. Ltd. PRIMARY CRUSHER CRUSHED ORE CONVEYOR STOCKPILE FEED CONVEYOR COPPER CONDITIONING TANK COPPER RECLEANER CELLS (4 OFF) CRUSHED ORE STOCKPLE PELE CRUSHER PEBBLE CRUSHER FEED HOPPER PEBBLE CRUSHER FEEDER PEBBLE CRUSHER DISCHARGE CONVEYOR PEBBLE CRUSHER FEED CONVEYOR No 2 SAG MILL DISCHARGE SCREEN PEBBLE CRUSHER FEED CONVEYOR N PRIMARY CYCLONE CLUSTER SAG MILL BULL MILL FEED CONVEYOR SAG MILL RECLAM FEEDERS CYCLONE FEED HOPPER CYCLONE FEED PUMPS COPPER ROUGHER FEED PUMP COPPER CONCENTRATE THICKENER COPPER CONCENTRATE THICKENER UNDERFLOW PUMP COPPER CLEANER CELLS (4 OFF) COPPER ROUGHER CELLS(5 OFF) COPPER REGRIND CYCLONE FEED TANK COPPER CONCENTRATE FILTER FEED PUMP COPPER CONCENTRATE FILTER FEED TANK COPPER REGRIND COPPER ROUGHER TALINGS PUMP CYCLONE FEED PUMP COPPER CONCENTRATE FILTER COPPER CONCENTRATE STORAGE SHED COPPER REGRIND CYCLONE CLUSTER ZINC CONDITIONING TANK COPPER REGRIND ZINC ROUGHER FEED PUMP MILL TALINGS THICKENER ZINC CONCENTRATE THICKENER ZINC ROUGHER CELLS(4 OFF ZINC CLEANER ZINC CLEANER CELLS(5 OFF) SCAVENGER CELLS OFF) TAILINGS THICKENER UNDERFLOW PUMPS ZINC RECLEANER CELLS IS OFF TALINGS FILTER FEED TANK TAILINGS FILTER FEED PUMPS TAILINGS BELT FILTERS ZINC CONCENTRATE FILTER FEED TANK TAILINGS CONVEYOR ZING CONCENTRATE FILTER ZINC CONCENTRATE THICKENER UNDERFLOW PUMP ZINC CONCENTRATE FILTER FEED PUMP DRAWN CHECKED PGRIGOROFF 01.08.11 DEAR 2 FOR Y APPROVED FOR STUDY AMROG DESIGNED FOR LDY REVER DES. APPR REVISION DETAILS CHKD ENG APPR PROJ APPR 12 PG OR T DRAWING No REFERENCE DRAWING BY DATE O Alara Resources Limited ZINC CONCENTRATE STORAGE SHED ZINC REGRIND CYCLONE FEED TANK ZINC REGRIND CYCLONE FEED PUMP 2NC REGRIND MLL ZINC REGRND CYCLONE CLUSTER PROCESS WATER STORAGE PROCESS WATER PROCESS WATER PROCESS WATER STORAGE TASK TALINGS STACKER TALINGS STOCKPRE Alaa resources Safety CLIENT KHNAIGUIYAH MINING CO. LTD. Ausenco TITLE KHNAIGUIYAH ZINC-COPPER PROJECT PROCESS PLANT PROCESS OVERVIEW PROCESS FLOW DIAGRAM COPYRIGHT PROJECT No 2154 DRAWING No Ausenco Limited SCALE SIZE NTS A1 REV D 2154-0000-F-0001 www.alararesources.com 22 22#24Oman - Copper Gold (+50-75%) Alara resources The Oman Copper Gold Projects are located in a region with several examples of VMS Copper Deposits in the Ophiolites and close to a nearby Copper Smelter Halhal 550000 Musaynaah Barka 600000 Al Sib Alaa Alara Oman Operations Exploration Blocks 2550000 2600000 Rumaylah O Alara Resources Limited Block 7 587 Sq km Hazm Block 8 497 Sq Km Al Ajal 25 Sq Km Wasit Tayyib Ar Rustaq Al Aysh Al Hamra Bahla Nattalah Bisiyah 550000 Awabi Nizwa Sunnar Saiq Said Washihi 39 Sq Km Fathi 600000 Samail Gharyan Nida Bidbid Sarur Murayrat Al Ulya As Samad Mullaq 41 Sq Km www.alararesources.com Scale: 0 36 12 18 24 Baushar Km Nagisi 2550000 2600000 WGS 1984 UTM Zone 40N Projection Transverse Mercator Datum WGS 1984 False Easting 500,000.0000 False Northing, 0.0000 Central Mendian: 57.0000 Scale Factor: 0.9996 Latitude Of Origin: 0.0000. Units: Meter N Legend Block 7 Block 8 Al Ajal Mullaq Washihi Cities/Towns UAE Saudi Arabia Yemen Oman 23 23#25Oman (cont'd) Alara is targeting discovery and development of Copper-Gold in Oman • Drilling +5,000m completed Initial JORC Resource at Washihi Project: • 6.9Mt Inferred @ 0.76% Cu and 0.16g/t Au • • • 2.1 Mt Indicated @ 0.70% Cu and 0.17g/t Au Completed scoping study for a 500,000tpa throughput mining and beneficiation at Washihi Geophysics indicates several targets and open mineralisation • Block 7 - VTEM & IP completed (over 3 main targets). RAB drilling completed • Block 8 - VTEM, IP & RAB drilling completed. 1.5km gossan discovered • Daris drilling intersections: . DERO006 - 23.0m @ 1.2% copper as copper oxide from 7.0m (from 17.0m) D3DC001 18.7m @ 3.8g/t gold (from 19.0m) • D3DC002 17.9m @ 2.6g/t gold (from 28.4m) • D3DC003 - 17.2m @ 8.1% copper, as copper sulphides and 2.7g/t gold (from 51.5m) • D3DC002 11.9m @ 5.7% copper, as copper sulphides (from 34.4m) . DERO004 - 8.0m @ 1.3% copper as copper oxide (from 28m) & 8m @ 2.9g/t gold (from 1.0m) DEDC005 - 7.3m @ 4.1% copper as copper sulphides (from 50.0m) Alaa resources D3DC001-6.1m @ 5.8% copper, as copper sulphides (from 31.6m) DEDC0064.4m @ 2.0% copper as copper sulphides (from 51.6m) . DERO009 -4.0m @ 5.3% copper as copper sulphides and 0.4g/t gold (from 34.0m) • D3DC002 - 3.5m @ 10.3% copper, as copper sulphides (from 50.6m) . D3DC002 3.5m @ 3.1g/t gold (from 50.6m) . DEDC007 - 2.9m @ 4.6% copper as copper sulphides (from 30.7m) 6 Refer to ASX market announcement dated 15 October 2012: Initial JORC Resource - Washihi Project in Oman O Alara Resources Limited www.alararesources.com 24 24#26Oman - Washihi Drill Hole Plan Drill hole locations at the Washihi Copper Gold Prospect 601000 & 601500 602000 602500 603000 603500 Alara 2516500 2517000 2517500 2518000 2518500 601000 Projection: UTM Zone 40N Datum: WGS 1984 601500 WH12DD005 1.1·1 WH12DD011 WH12DD012 WH12DD010 WH12DD001 WH12DD002 O Alara Resources Limited WH12DD003 WH12DD004 602000 WH12DD007 WH12DD009 WH12DD008 602500 603000 0 280 560 1,120 Meters 603500 www.alararesources.com 2516500 2517000 2517500 2518000 0058 LSZ Alaa resources resources Washihi Copper Gold Project Pilatus Resources - Oman Alara Oman Drillholes • Proposed • Completed Result highlights from nine drilling holes totalling 1,615m include: In progress • Old drillholes Hole WH12DD005 72m @ 1.3% Cu, 0.15g/t Au Hole WH12DD007 18m @ 1.4% Cu, 0.21g/t Au Washihi license area Qatar UAE Saudi Arabia Oman Yemen Alara Resources www.alararesources.com Iran 45 25#27Oman - Washihi Drill Hole Locations 2517300 2517600 2517900 2518200 Alaa 601800 Alara Resources Limited 602100 Washihi Copper-Gold Project Mineralisation & Discovery Intersections Mineralisation open 602400 602700 Qatar 603000 UAE (Dubai) Washihi Project Saudi Arabia Sohar Muscat Sur Oman Kilometers Yemen 0 150 300 WH12DD005: 72m @1.26% Cu & 0.15 g/t Au; 3m @1.45% Cu; 0.61 g/t Au & 3m @3.20% Cu & 0.05 g/t Au WH12DD010: 112.35m @0.78% Cu & 0.11 g/t Au WS-14: 27.5m @1.25% Cu & 0.12 g/t Au WS-20: 8.6m @2% Cu & 4 g/t Au, 39.3m @1% Cu & 0.07 g/t Au WS-23: 14.1m @1.56% Cu & 1.21 g/t Au, 1.5m @1.54% Cu & 0.66 g/t Au WS-03: 8m @0.95% Cu & 0.95 g/t Au, 39m @0.9% Cu & 0.3 g/t Au WH12DD007: 18m @1.35% Cu & 0.21 g/t Au 157-8: 1.79m @1.17% Cu 157-1: 4.76m @2.49% Cu & 6.75g/t Au WS-24: 24.9m @1.3% Cu & 0.23 g/t Au WH12DD001: 22m @0.71% Cu & 0.11 g/t Au 157-10: 6.7m @0.73% Cu WH12DD004: 13.7m @0.64% Cu & 0.52 g/t Au Anomaly A Kilometers 0 0.5 1 2 Washihi Licence Anomaly C Low Ground Mag. (RTP) High Ref. GW2012082111 O Alara Resources Limited 601800 Anomaly B 157-6: 23.47m @0.95% Cu 157-7: 11.7m @0.89% Cu & 0.30 g/t Au WH12DD009: 40m @0.58% Cu & 0.21 g/t Au WH12DD008: 2m @0.72% Cu & 0.15 g/t Au, 4m @1.09% Cu & 0.28 g/t Au Mineralisation open Meters 0 150 300 600 602100 602400 602700 www.alararesources.com Low Ground Mag. (RTP) High Legend Alara drilling 2012 Historic drilling Inclined hole trace . Mineralisation outline Mineralised zone 603000 Projection: UTM Zone 40N | Datum: WGS 1984 www.alararesources.com 2517300 2517600 2517900 2518200 26 Alaa resources#28Oman - Washihi Cross Section (250N) Level (m) 250 300 350 оль 450 500 100 Washihi Copper-Gold Mineralisation Geological Cross Section N 48.3 E Ophiolitic basalt lavas Legend Drill hole trace Mineralisation intersect Fault breccia Mineralisation Basalt Length (m) O Alara Resources Limited WH12DD005 72m @1.3% Cu & 0.15 g/t Au F 100 200 WH12DD010 200 300 F 112.35m @0.78% Cu, 0.11 g/t Au F Ref. GW2012082114 www.alararesources.com 300 www.alararesources.com 2517500 2518000 400 Alara Resources Limited Washihi Copper-Gold Project Alaa resources Map View 602000 Ophiolitic basalt lavas A Section line Drill hole Low Mineralised zone 602000 400 802500 Meters 0 50100 Ground Ma RTP) 602500 A 200 2517500 250 2518000 300 350 оль 450 27 500 Alara resources#29Oman - Washihi Mineralisation Targets 2517000 2517600 2518200 2518800 Anomaly A Alara 600000 600600 Alara Resources Limited Washihi Copper-Gold Project Potential Geophysical Targets Kilometers 0 0.5 1 2 Washihi Licence Magnetic anomaly "A" (Target for drilling) Anomaly C Low Ground Mag. (RTP) High 600000 Ref. GW2012082112 O Alara Resources Limited Anomaly B 601200 601800 602400 Qatar Sohar Magnetic anomaly "C" (Target for drilling) Muscat UAE (Dubai) Sur Washihi Projects Saudi Arabia Oman Kilometers Yemen 0 150 300 Magnetic anomaly "B" Interpreted feeder zone (Target for drilling) WH12DD010: 112.35m @0.78% Cu & 0.11 g/t Au Confirmed Washihi mineralisation coincident with magnetic anomaly WH12DD005: 72m @1.26% Cu & 0.15 g/t Au; 3m @1.45% Cu; 0.61 g/t Au & 3m @3.20% Cu & 0.05 g/t Au Meters 150 300 600 600600 601200 601800 www.alararesources.com Low Ground Mag. (RTP) High 602400 Legend • Alara drilling 2012 Historic drilling Mineralisation outline Magnetic anomaly Mineralised zone 603000 Projection: UTM Zone 40N | Datum: WGS 1984 www.alararesources.com 2517000 2517600 603000 2518200 2518800 28 Alaa resources#30Alara resources Chile - El Quillay Project (earning 70%) In the "El Quillay" Prospect, numerous workings exist over 1km strike and up to 85m depth. Outcrops and workings have been extensively sampled La Serena Coquimbo+ -72°E A N www EL QUILLAY PROJECT -32°S Pacific Ocean (Port) Province of Coquimbo Ovalle CHILE Province of Valparaíso San Filipe Viña del Mar Quilpué Valparaiso Los Andes -68°E • Ownership - earning 70% interest over three years Alara Resources Limited COPPER PROJECTS, CHILE SANTIAGO! San Bernardo Puente Altoj Province of Santiago D Rancagua Province of O'Higgins! San Fernando Santa Cruz PIEDRECILLAS PROJECT Curico Province of Maule Constitición Talca O Alara Resources Limited 0 20 40 60 80 100km ARGENTINA CHILE Highway Major Road Railway Drainage 40° 0° CHILE Santiago 40° 2000km . • . Targets copper-gold with extensive previous - workings and walk up drill targets - Prospects copper, copper-gold, copper molybdenum, IOCG type and porphyry Deep workings - along 6km strike 5,000m drilling programme completed, results being evaluated Piedrecillas Prospect – No drilling has yet been performed in the project area however historical sampling taken in outcroppings both at surface and from small underground mining works show grades between 0.30% Cu to 3.30% Cu with up to 77g/t Ag, 0.15g/t Au and 0.001% Mo www.alararesources.com 29 29#31Chile (cont'd) "Lana and Corina" – highlight prospectivity of breccia pipes, with porphyry below Two drill holes - intersected 130m & 180m @ 0.7% Copper & up to 200ppm Molybdenum E-294300 E29400 E-298 500 E-298 600 E-29 700 N-6 555 300 56 200 LCO-2 6555.100 N-6.555 000 N-6.504 800 CORINA LANA N-4 555 300 Lana-Corina Project Area Geology Plan N-4555 100 N-6 555.000 LCO-2 800m 700m 600m 500m LITHOLOGY Breccia pipe Dacite porphyry Diorite ALTERATION-MINERALISATION Breccia pipe with tourmaline-serecite Intercept of copper/ molybdenum mineralisation in diorite porphyry Drill hole trace 400m LCO-1 LANA-CORINA PROJECT 300m GEOLOGY PLAN E-298 300 E-296 500 E-298 600 E-29 700 O Alara Resources Limited www.alararesources.com T GEM GEM-2 Alaa resources Lana-Corina LCO-1 Project Area Cross 800m 700m GEM-1 14 GEM-3 LO LEGEND 0.50-3-0023 Breccia pipe with copper/molybdenum mineralisation Copper/molybdenum mineralisation in dacit porphyry with quartz dolerite Mineral >= 0.7% Cu Mineral intercept 0.2 y @ 0.69% Cu <Und> CuT (%) Ag (g/t) Assay result= Cu Mo 600m 500m m Mined areas LANA-CORINA PROJECT CROSS SECTION OF PORPHYRY SHOWING DRILL HOLES A SA. 2005 Age 200 6 150m 30#32Summary Khnaiguiyah Zinc Copper Project (50%) . Khnaiguiyah Zinc-Copper DFS on track for completion in December 2012 quarter • Recent Resource expansion of 30% • Production from Khnaiguiyah expected to commence into a strengthening zinc market Alaa resources Oman (+50-75%) • Scoping Study from Oman confirms potential for small scale, low cost copper-gold production Chile (El Quillay 70%) . Initial drilling results from Chile under review O Alara Resources Limited www.alararesources.com 31#33JORC Code Competent Person Statements Alaa resources The information in this presentation that relates to Mineral Resources within Mineralised Zones 2 and 3 of the Khnaiguiyah Project (as reported in the Alara Resources Limited ASX market announcement dated 21 February 2012 entitled "Maiden JORC Resource - Khnaiguiyah Zinc-Copper Project) is based on information compiled by Mr Daniel Guibal, an employee of SRK Consulting (Australasia) Pty Ltd, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Guibal has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity they are undertaking to qualify as Competent Persons in terms of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2004 edition). Mr Guibal consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears. The information in this presentation that relates to Exploration Results and other Mineral Resources pertaining to the Khnaiguiyah Project is based on information compiled by Mr Ravindra Sharma, who is a Chartered Professional Member of The Australasian Institute of Mining and Metallurgy and registered member of SME. Mr Sharma is a principal consultant to Alara Resources Limited. Mr Sharma has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity they are undertaking to qualify as Competent Persons in terms of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2004 edition). Mr Sharma consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears. The information in this presentation that relates to other Exploration Results has been compiled by Mr Hem Shanker Madan who is a Member of The Australian Institute of Mining and Metallurgy. Mr Madan is the Managing Director of Alara Resources Limited. Mr Madan 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 a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)." Mr Madan consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. O Alara Resources Limited www.alararesources.com 32 32#34Alara Resources Limited ABN: 27 122 892 719 ISTED ON ASX ASX Code: AUQ Level 14, The Forrest Centre 221 St Georges Terrace Perth, Western Australia 6000 Telephone: +61 8 9214 9787 Facsimile: +61 8 9322 1515 [email protected] www.alararesources.com DISCLAIMER This presentation contains certain forecasts and forward-looking information including possible or assumed future performance, costs, production levels or rates, prices, reserves and resources or potential growth of Alara Resources Limited, industry growth or other trend projections. Such forecasts and information are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors, many of which are beyond the control of Alara Resources Limited. Actual results and developments may differ materially from those expressed or 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.