Alkane Resources Quarterly Update - September 30 2025

• Site operating cash flow of A$73 million for the quarter, with production of 30,511 gold equivalent ounces at an all-in sustaining cost of A$2,988 per ounce during the statutory reporting period.
• Merger with Mandalay Resources completed on 5 August 2025, adding Costerfield and Björkdal operations to create a three-mine portfolio with full quarterly production of 36,407 gold equivalent ounces.
• Admitted to the ASX 300 index during the quarter following the transaction completion.
• Cash, bullion and listed investments totalled A$191 million at quarter end after repaying A$45 million in debt and absorbing A$25 million in one-off merger costs.
• Full-year guidance of 160,000 to 175,000 gold equivalent ounces at all-in sustaining costs of A$2,600 to A$2,900 per ounce remains on track.

Alkane Resources (ASX:ALK) is an Australian-based gold and antimony producer with mining operations in Australia and Sweden. The company's assets include the Tomingley underground and open pit gold operation in Central West New South Wales, the Costerfield underground gold and antimony mine in Central Victoria, and the Björkdal underground gold mine in northern Sweden. Alkane also holds the Boda-Kaiser gold-copper porphyry project in New South Wales and conducts exploration programmes at all three operating sites.

Record Operational Performance and Cash Flow Generation

Alkane produced 30,511 gold equivalent ounces during the September quarter at an all-in sustaining cost of A$2,988 per ounce. The statutory reporting period included three months of production from Tomingley and two months from Costerfield and Björkdal following the merger completion on 5 August. On a full three-month basis across all operations, production totalled 36,407 gold equivalent ounces at an all-in sustaining cost of A$3,036 per ounce.

The three operations generated A$73 million in operating cash flow for the quarter. Revenue reached A$147 million from sales of 30,010 gold equivalent ounces at an average gold price of A$4,896 per ounce and antimony price of A$35,646 per tonne. The company processed 571,429 tonnes of ore at an average gold grade of 2.27 grammes per tonne during the statutory period.

Managing Director Nic Earner stated:

"It has been a significant quarter with the merger with Mandalay completing in early August. Alkane now has three operating mines who together produced 35,527 ounces of gold and 198 tonnes of antimony (36,407 ounces of gold equivalent) over the full quarter."

Individual mine contributions comprised 18,335 gold ounces from Tomingley, 6,189 gold equivalent ounces from Costerfield, and 5,987 gold ounces from Björkdal during their respective production periods.

Mandalay Resources Merger Completion and ASX 300 Admission

The merger between Alkane and Mandalay Resources completed on 5 August 2025 following shareholder approval from both companies. The transaction added the Costerfield gold-antimony mine in Victoria and the Björkdal gold mine in Sweden to Alkane's existing Tomingley operation. The enlarged company now holds 1.37 billion fully paid ordinary shares on issue, including performance rights.

Following completion, the company repaid its A$45 million Macquarie Bank facility that financed the Tomingley Gold Extension Project. The company also incurred A$25 million in one-off transaction and tax costs during the quarter. The merger resulted in Alkane's admission to the ASX 300 index.

The company ended the quarter with A$191 million in cash, bullion and listed investments, comprising A$160 million in cash, A$14 million in bullion, and A$17 million in listed investments.

Mr. Earner commented:

"With the repayment of our A$45 million debt and the one-off transaction costs of A$25 million behind us we have a very solid balance sheet with A$191 million in cash, bullion and listed investments at quarter end."

Capital expenditure totalled A$27 million for the quarter, including A$6 million in growth projects focused on the Newell Highway realignment and biodiversity offset fencing at Tomingley.

Exploration Results Across Three Operating Mines

Alkane invested A$6 million in exploration drilling during the quarter across its three operations. At Costerfield, A$4 million was allocated to four areas, with near-mine drilling at Brunswick South, Sub KC and Kendal targeting extensions to immediate mine life. At True Blue, located 2 kilometres west of current development, drilling intercepted a new vein with results of 11.7 grammes per tonne gold and 6.5 per cent antimony over 4.88 metres (estimated true width 2.06 metres), situated 40 metres east of the targeted veining.

Tomingley's exploration programme at El Paso identified gold mineralisation within dacite, including an intercept of 8.2 metres grading 3.74 grammes per tonne gold, containing 1 metre at 25.0 grammes per tonne. The programme identified three zones of mineralisation, with one extending 32.1 metres at 1.65 grammes per tonne. The company commenced 2,000 metres of diamond core drilling to further define the El Paso target.

Björkdal's A$2 million exploration programme focused on three areas: the North Zone and Eastern extension programmes targeting reserve extensions at the Björkdal Mine, and drilling at Storheden, located approximately 1 kilometre northeast, to build on the inferred mineral resource. Geological modelling of Storheden results is underway. At the Northern Molong Porphyry Project, reconnaissance drilling at Boda-Kaiser extended gold-copper mineralisation outside current resource estimates, including an intercept of 53.3 metres grading 0.87 grammes per tonne gold and 0.27 per cent copper.

Outlook

Alkane's full-year guidance of 160,000 to 175,000 gold equivalent ounces at all-in sustaining costs between A$2,600 and A$2,900 per ounce remains on track. The guidance reflects full-year production from Costerfield and Björkdal from July 2025. In early October, Tomingley awarded the final contract portion for the Newell Highway realignment construction, with completion expected in the March 2027 quarter. The company continues exploration programmes at all three operations and development work at the Boda-Kaiser project.

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