Proposed Alkane and Nagambie Joint Venture

• $27.5 million staged expenditure by Alkane to earn up to 80% interest in Nagambie's tenements
• Alkane to become a significant 13.6% shareholder in Nagambie
• Potential for significant future Nagambie free cash flow from joint venture antimony and gold production

Nagambie Resources Limited (ASX: NAG, Nagambie) and Mandalay Resources Costerfield Operations Pty Ltd, a 100% subsidiary of Alkane Resources Limited (ASX: ALK), have signed a binding Term Sheet for a proposed earn-in over Nagambie's mining licence MIN 5412 and exploration licence EL 5511. The activities of the earn-in and subsequent potential joint venture are proposed to include exploration drilling, decline-access mine development, mine stoping operations, and the potential trucking of ore to the Costerfield treatment plant for gravity-gold recovery and the production of saleable antimony-gold flotation concentrate. Alkane can earn up to an 80% interest in the tenements by spending $27.5 million, or an earlier 60% interest by spending $12.5 million. Alkane will also subscribe for $2.5 million of NAG shares, and PPT Nominees will convert $1.5 million of its loan facility into NAG shares, making Alkane a 13.6% shareholder in Nagambie. The joint venture has the potential to provide significant future free cash flow to Nagambie from antimony and gold production. Nagambie retains 100% of its other gold-antimony projects.

Alkane to spend $27.5 million over 5 years to earn up to 80% interest in Nagambie's tenements, or $12.5 million over 3 years to earn 60% interest.