Alkane Extends Storheden Gold Deposit to 464m Depth at Björkdal

• Gold-bearing quartz veins intercepted to 464m depth, more than doubling the previous tested depth of 200m
• High-grade intercepts include 142.0 g/t gold over 0.60m, 111.0 g/t gold over 0.50m, and 34.3 g/t gold over 1.6m
• Strike length of known mineralisation extended to over 2.7km through drilling
• Geological analysis indicates Storheden and Björkdal systems share a common fluid source and are interpreted to converge at depth
• Drilling scheduled to recommence January 2026 focusing on resource definition and extension

Alkane Resources Limited (ASX: ALK, TSX: ALK, OTCQX: ALKEF) is an Australia-based gold producer and explorer operating three mines: the Tomingley open pit and underground gold mine in New South Wales, the Costerfield gold-antimony underground operation in Victoria, and the Björkdal underground gold mine in northern Sweden, located approximately 750km north of Stockholm. The company conducts ongoing near-mine exploration at all three operations. Alkane also holds the Boda-Kaiser gold-copper porphyry project in New South Wales, which has been evaluated through a scoping study.

Storheden Depth Extension Drilling Results and High-Grade Intercepts

The 2024 depth testing campaign comprised 6,598m over 14 holes targeting zones beneath the initial inferred mineral resource of approximately 99,000 ounces at 1.74 g/t gold. Drilling successfully intercepted gold-bearing quartz veins at 464m depth, extending the tested vertical extent from the previous 200m established in 2023. The deposit remains open at depth with no indications of diminishing grade.

Notable intercepts from the 2024 campaign included 34.3 g/t gold over 1.6m (estimated true width 0.68m) at 470m depth in hole SH24-006, 16.2 g/t gold over 0.70m (ETW 0.60m) at 475m depth in SH24-003, and 14.0 g/t gold over 1.2m (ETW 0.85m) at 317m depth in SH24-004. Visible gold, scheelite, and tsumoite were observed in high-grade tension veins, consistent with mineralisation characteristics at the adjacent Björkdal mine.

The 2025 resource extension campaign completed 7,938m over 14 holes with closer drill spacing to further define veining patterns. This programme returned intercepts of 142.0 g/t gold over 0.60m (ETW 0.25m) and 111.0 g/t gold over 0.50m (ETW 0.25m) in hole SH25-006, along with 57.7 g/t gold over 0.50m (ETW 0.41m) in SH25-009. The results were obtained from drilling targeting the interpreted core of the system. Strike extension drilling also confirmed continuous mineralisation across 2.7km.

Geological Interpretation and System Continuity

Storheden mineralisation is hosted in mafic to intermediate volcanic rocks of the Upper Skellefte group, near the contact with sedimentary sequences in the Vargfors Group. The deposit is located stratigraphically above the Björkdal deposit. Visible gold, scheelite, and tsumoite identified in Storheden's high-grade tension veins suggest derivation from the same fluid source as the Björkdal deposit, which has produced 1.66 million ounces of gold since 1988 and currently holds 1.40 million ounces in measured and indicated mineral resources.

The Björkdal-Storheden system is hosted within a fold and thrust architecture on the northwestern margin of the Björkdal dome. A key structural feature is the north-south striking Cross fault, which dips moderately westward and extends across both deposits parallel to the axial plane of the large fold. High-grade mineralisation occurs where this fault intersects major stratigraphic contacts and interacts with other faults.

At surface, thickening of the stratigraphic sequence creates approximately 750m to 1,000m separation between the marble horizon beneath Björkdal and the Skellefte-Vargfors contact hosting Storheden. Structural projections indicate these two contacts converge at depth to separations comparable to other parts of the Björkdal dome (less than 200m). Based on similar mineralisation styles and structural analysis, the two systems are interpreted to be connected at depth.

2026 Drilling Plans and Resource Growth Objectives

Alkane plans to recommence drilling in January 2026 to continue resource growth and mineralisation framework definition at Storheden. Upcoming programmes will focus on target zones defined from current drilling (designated A, B, and C), where lithostructural analysis indicates suitable conditions for quartz veining and mineralisation.

Managing Director Nic Earner stated:

"These highly encouraging results from the Storheden Deposit further support our understanding that the wider Björkdal system is vast and underexplored. Our focus for Björkdal is bringing higher grade ore through the processing plant by replacing low grade stockpile feed with underground ore. Storheden presents an opportunity to create a distinct production area alongside those already in production and achieve this goal."

The Storheden deposit is situated approximately 600m north-northeast of the active Björkdal mine infrastructure. Exploration will also continue at the Eastern Extension and North Extension areas of the Björkdal deposit, as drilling platforms become available. The resource model update incorporating recent drilling results is ongoing.

Milestones and Next Steps

Drilling has extended the tested depth of Storheden to 464m and confirmed strike continuity over 2.7km. The January 2026 drilling programme will target resource definition in priority zones identified through lithostructural analysis. Alkane aims to update the inferred mineral resource estimate and establish a basis for mining decisions at Storheden. Concurrent exploration at Björkdal's Eastern and North Extension areas will continue testing system extents.

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