ASX ANNOUNCEMENT 18 November 2016 ASX Code: AGS No. of pages: 30 - - PDF document

Suite 3, 51-55 City Road Southbank, VIC, 3006 P +61 3 9697 9090 F +61 3 9697 9091 info@allianceresources.com.au www.allianceresources.com.au

ABN 38 063 293 336

ASX ANNOUNCEMENT

18 November 2016 ASX Code: AGS

• No. of pages: 30

COMPANY PRESENTATION

Please find attached a copy of a presentation to be made by the Managing Director, Mr Steve Johnston at the 2016 Annual General Meeting in Melbourne, Victoria today. For and on behalf of the Board. Bob Tolliday Company Secretary About Alliance Resources Further information relating to the Company and its various exploration projects can be found on the Company’s website at www.allianceresources.com.au.

1

Annual General Meeting

Level 26, 530 Collins Street, Melbourne 18 November 2016

Annual General Meeting

Level 23, 530 Collins Street, Melbourne 18 November 2016

2

Corporate Overview

Board & Executive

• Ian Gandel (Chairman) LLB, BEc Businessman
• Steve Johnston (Managing Director) BAppSc Geologist
• Tony Lethlean (Director) BAppSc Geologist / Banking
• Bob Tolliday (CFO & Company Secretary) CA BBus

Corporate

• ASX Code

AGS

• Shares on Issue

417,173,773

• Options

Nil

• Market Capitalisation ($0.044)

$18.3 M

• Cash Reserves (30 Sep 16)

$23 M

3

FY2016 Review

• AGS sells its interest in the Project for $73.975 million
• Return of capital of 12 cps ($50m) returned to shareholders
• Drilling at Monardes Project in Chile intersects low grade Cu. Alliance withdrew from Chile.
• Exploration licence applications lodged at Nepean South and Gundockerta South in WA and at Mount

Pleasant, Garema and Bogan Gate West in NSW. Tenements prospective for gold and base metals

• Retirement of Mr John Dunlop as Chairman; reduction in Directors’ fees and executive salaries;

appointment of Mr Ian Gandel as Chairman

• Share Sale Facility for holders of unmarketable parcels of shares
• Announced intention to make a capital return of 2 cps ($8.3m) to shareholders
• On 23 September 2016, Alliance enters into agreement with Tyranna Resources Ltd (TYX) to:
• Acquire 51% of Wilcherry Project, SA for $2 million
• Subscribe and/or acquire up to 19.9% of TYX
• Alliance has projects in three states for gold and base metals, including the flagship Wilcherry Project
• Forecast cash reserves, post capital return, of approximately $10 million

4

Wilcherry Project JV

TRANSACTION

• Alliance enters into agreement with Tyranna Resources Ltd (TYX) to:
• Acquire 51% of Wilcherry Project, SA for $2 million
• Gives Alliance an advanced project in the mineral rich Gawler Craton
• Alliance is well funded to explore the project
• TYX has retained 49% equity, reflecting its view of the potential of the Project
• Exploration joint venture formed
• Exploration team assembled
• Subscribe and/or acquire up to 19.9% of TYX
• Principally to gain exposure to TYX’s Jumbuck Gold Project discovery, proximal to the +1Moz high

grade Challenger Gold Mine

• As at 24 October 2016, Alliance owns 17.91% of TYX

5

Wilcherry Project JV

PROJECT OVERVIEW (Why Wilcherry?)

• Located in the prospective Gawler Craton, northern Eyre Peninsula, South Australia
• Has been explored since the 1970’s by companies including Pan Continental Mining, Asarco, Murumba Minerals, Shell

(later Acacia), WMC, Aquila Resources Ltd, Trafford Resources Ltd, Ironclad Mining Ltd (later Tyranna Resources Ltd). Drilling has identified significant mineralised systems within Palaeoproterozoic calcareous and iron-rich metasediments

• Presence of Hiltaba Suite granites (~1600Ma) which are responsible for widespread gold, uranium and base metal

mineralisation in the Gawler Craton

• The 2012 discovery of high grade tin at Zealous by Trafford indicates the presence of a reduced granite intrusions into

sediments, including multiple fold-repeated horizons of dolomite (a host rock for replacement tin deposits). Potentially represents a new and significant tin province in South Australia

• Transported cover obscures most of the bedrock. Regolith of kaolinised saprock to depths of 40-100m. Groundwater saline

– strong geochemical depletion. This represents an opportunity for an explorer with experience is such terrains using modern geophysics

• Substantial datasets of geophysics, surface geochemistry (>9,000 samples) and drilling (>3,000 holes)
• 28 existing exploration targets prospective for gold, tin, copper, zinc, lead, silver, iron, bismuth, tungsten and uranium in a

variety of mineralisation styles

• Priority prospects currently Weednanna (gold) and Zealous (tin)

6

Wilcherry Project JV

Zealous (Tin)* 20m @ 1.29% Sn (incl. 7m @ 3.28% Sn) 12.3m @ 1.1% Sn 10m @ 1.23% Sn (incl. 5m @ 2.29% Sn) Weednanna (Gold)* 22m @ 5.25 g.t Au 32m @ 3.44 g/t Au 36m @ 5.71 g/t Au (incl. 12m @ 11.37g/t Au) 9m @ 24.69g/t Au 7m @ 18.50g/t Au

7.7 Mt @ 3.1% Zn, 2.6% Pb and 27g/t Ag 8.8 Mt @ 116 g/t Ag (33 Moz)

Tenements total 1,158 km2

*Refer ASX announcement 23 September 2016

7

Wilcherry Project JV

8

Wilcherry Project JV

Regional Geophysics

Image courtesy of Tyranna Resources Ltd / Trafford Resources Ltd

9

Wilcherry Project JV

Zealous Tin Prospect

ZEALOUS TIN PROSPECT

• Located in the central northern area of EL5299
• Lies between two elongated magnetic highs but is relatively quiet geophysically when compared to other Wilcherry iron

skarn targets

• Iron subcrop noted on historical maps. Visited by Ironclad geologists sometime in 2007-2008 . First pass exploratory drilling

for DSO hematite in 2012.

• The laboratory reported several samples from this drilling indicated missing mass in the Fe suite XRF. To show that it was

not a fault with the XRF, the laboratory checked the results using another analytical method and reported several other base metals including tin. The rest of the holes in the drill program were then analysed using Li-borate fusion ICPMS

• Testwork indicates the tin is cassiterite
• Regionally stands out as an arsenic anomaly and a weak gold anomaly in the historic calcrete data
• Subsequent drilling for tin has defined two main lithologies:
• High grade tin associated with a carbonate hosted goethitic iron unit
• Lower grade tin associated with a weathered kaolinised unit (rhyolite or quartzite)
• Ground magnetic survey in 2013 defined a magnetic response to the east of the current drilling, which is yet to be

explained by drilling

• The prospect also contains elevated lead, zinc, uranium and copper

10

Wilcherry Project JV

Zealous Tin Prospect

Image courtesy of Tyranna Resources Ltd / Trafford Resources Ltd

11

Wilcherry Project JV

Zealous Tin Prospect

Refer ASX announcement 16 November 2016

12

Wilcherry Project JV

Zealous Tin Prospect

Refer ASX announcement 16 November 2016

13

Wilcherry Project JV

Weednanna Gold Prospect

WEEDNANNA GOLD PROSPECT

• Originally a secondary base metal target to Menninnie Dam (Shell)
• In 1997, Acacia identified a strong gold-in-calcrete anomaly coincident with a NNW-trending magnetic anomaly
• In 2004, Aquila drilled a NW-trending target west of the main magnetic anomaly and intersected gold associated with a

calc-silicate (Weednanna West)

• The magnetic anomaly was the crystalline magnetite target for Ironclad Mining Ltd and the main gold target for Trafford

Resources Ltd

• Successive drilling campaigns identified that gold mineralisation associated with skarn (calc-silicate) alteration and

brecciation in the contact aureole of a granite

• Along the magnetic anomaly, gold mineralisation can be traced for over 900m
• Gold is associated with pyrite & arsenopyrite and occurs within the following rock types:
• Calc-silicate
• Crystalline magnetite
• Weathered magnetite (goethite, hematite)
• Gneiss (lower grade)
• Shear zones within all lithologies
• Skarn system at Weednanna also contains elevated tin, uranium, lead and zinc

14

Wilcherry Project JV

Weednanna Gold Prospect

Gold distribution >0.5 g/t Green: 0.5-0.99 g/t Yellow: 1+ g/t Background TMI RTP (magnetics)

22m @ 5.25 g/t Au from 63m in 12WDDH001* 36m @ 5.71 g/t Au from 52m in 06WDRC007* 32m @ 3.44 g/t Au from 56m in 06WDRC002* 9m @ 24.6 g/t Au from 7m in 98WDDH001* 7m @ 18.5 g/t Au from 125m in 98WDDH002*

*Refer ASX announcement 23 September 2016

WEEDNANNA WEST

15

Wilcherry Project JV

Weednanna Gold Prospect

Image courtesy of Tyranna Resources Ltd / Trafford Resources Ltd

Location of 2012 Weednanna dill holes. Image A on the left shows a plan image of the historic holes (yellow) and the 2012 drill holes (red) over the resistivity contours. Image B is the interpreted 3D gravity feature identified at Weednanna

16

Wilcherry Project JV

Proposed Heli EM survey

17

Wilcherry Project JV

Proposed Heli EM survey

18

Wilcherry Project JV

Work has commenced

19

WA Projects (100%)

20

Nepean South Ni-Cu-Au Project (100%)

Refer ASX announcement 25 November 2015

21

Nepean South Ni-Cu-Au Project (100%)

• Located 26 km SW of Coolgardie, WA
• Captures 14 km strike length of ultramafics interpreted

to be the southern extension of the sequence hosting the Nepean Nickel Mine

• Prospective for both komatiitic-hosted nickel sulphide

deposits and greenstone-hosted orogenic gold deposits

• Completed a 156 sample orientation auger soil survey
• n three 400m x 50m lines in areas of interpreted

shallow transported cover

• Commenced extension to first soil survey infilling to

50m x 200m for 251 samples

• Anomalous results will be announced upon receipt of

assays

• Subject to results, planned work includes a ground

electromagnetic survey and aircore drilling

Nepean South showing exploration target area and

• rientation soil survey lines on

background aeromagnetic image

22

Nepean South Ni-Cu-Au Project (100%)

Old gold workings immediately NE of tenement boundary

23

Gundockerta South Ni-Cu-Au Project (100%)

Refer ASX announcement 25 November 2015

24

NSW Tenement Applications (100%)

Potential for Gold & Base Metals

25

Garema Gold Project (100%)

• ELA – not yet granted
• Located 25 km south of Forbes, NSW
• The Parkes Fault Zone (PFZ) is located immediately west of the

tenement and is associated with significant gold deposits &

• ccurrences over a strike length of 100 km between Forbes

and Tomingley

• The tenements contains the historic Pinnacles Mining Centre,

where a number of mines were worked between 1883 and 1936 for total recorded production >158 kg gold

• The area has been explored by a number of companies since

the early 1980’s

• Previous exploration defined a 7 km x 500m +10ppb gold-in-

soil anomaly over this district

• Prospective for Ordovician sediment-hosted orogenic gold

deposits, based on it structural position within the PFZ and the existing gold occurrences, which have not been thoroughly tested at depth, along strike or below transported cover

Refer ASX announcement 7 June 2016

26

Garema Gold Project (100%)

Styles East & West Prospects

• Styles East and West prospects have been identified

as the most favourable for more detailed analysis

• Previous drilling carried out by Nicron Resources JV in

1984-88 and Compass Resources in 2003-04

• Gold mineralisation at Styles West is developed on

the margins of an altered syenite

• The results, whilst somewhat variable in grade,

thickness and depth of intersection, do show continuity of gold mineralisation over a strike length

• f 450m to 500m and open at both ends
• Requires further review of the drilling, sampling and

assay data that underpins the reported grade thickness values prior to mapping, geophysics and drilling

4m @ 2.5g/t Au in SWP06 15m @ 1.47g/t Au from 42m in CSRC2 4m @ 3.6g/t Au in SWP05 10m @ 1.8g/t Au from 30m in SWP02 4m @ 2.03g/t Au from 24m in SWP01 1m @ 1.89g/t Au from 71m in CSRC1 1m @ 2.26g/t Au from 52m in CSRC4 3m @ 1.23g/t Au from 76m in CSRC6 2m @ 4.2g/t Au in SWP09

References (open file):

• EL2079 Annual Exploration Reports, 1984-88, Range Resources Ltd JV with Nicron Resources Ltd, Pan Australian

Ltd and Petrocarb Exploration NL;

• EL4519 Annual Exploration Reports, 1994-96, North Ltd;
• EL6090 Annual Exploration Reports, 2004-2010, Compass Resources Ltd

27

Next 12 months

• Wilcherry Project JV, South Australia (51%)
• Heli EM (XCITE) planned to test for conductors
• Screening of historic drilling pulps by portable XRF analyses prior to more accurate multi-element

analyses

• Zealous tin prospect – re-log and re-interpret prior to RC and/or diamond drilling
• Weednanna gold prospect – re-log and re-interpret prior to RC and/or diamond drilling
• Western Australian Nickel-Copper-Gold Projects (100%)
• Nepean South – complete auger soil geochemistry, geophysics (EM) and aircore / RC drilling
• Gundockerta South – auger soil geochemistry, geophysics (EM) and aircore / RC drilling
• New South Wales Gold-Base Metals Projects (100%)
• Garema – ELA prospective for gold – mapping, geophysics (IP) and RC and/or diamond drilling
• Bogan Gate West – ELA prospective for gold and base metals – mapping, geochemistry and IP
• Mount Pleasant – ELA prospective for molybdenum-tungsten-copper-gold – resampling of available

drill core, alteration mapping and IP

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Cautionary & CP Statement

Cautionary Statement

This presentation has been prepared by Alliance Resources Limited (“Alliance”). The information contained in this presentation is of a general nature only and does not constitute and offer to issue, or to arrange an issue, of securities or the financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision on the basis of this presentation, the investor needs to consider, with or without the assistance of a financial advisor, whether the investment is appropriate with due regard for their particular investment needs, objectives and financial circumstances. This presentation is based on internal company and joint venture partner reports, stock exchange announcements, stockbroker research and technical information believed to be

• reliable. To the maximum extent permitted by law, none of Alliance’s directors, employees or agents, nor any other person accepts any liability, including, without limitation, any

liability arising out of fault of negligence, for any loss arising from the use of the information contained in this presentation nor is any obligation assumed to update such

• information. In particular, no representation or warranty, express or implied, is provided as to its accuracy, completeness or currency of the information contained in this
• presentation. Alliance accepts no obligation to correct or update the information or opinions expressed in it. Opinions expressed are subject to change without notice and reflect

the views of Alliance at the time of presenting.

Competent Person Statement

The information in this report that relates to the Exploration Results is based on information compiled by Mr Stephen Johnston who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Johnston is a full time employee of Alliance Resources Ltd and 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Johnston consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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