alliance resource edging closer

..."completion of resource drilling about a fortnight away"......


Alliance resource edging closer

Michael Vaughan
Thursday, 7 September 2006

ALLIANCE Resources expects to have the highly anticipated resource estimate for its
Beverley 4 Mile uranium prospect in South Australia ready in the December quarter, with
completion of resource drilling about a fortnight away.

The company was trading at 29c at the start of August and hit 94c by the end
of the month with only one set of drilling results released to the market early
in the month.

Further high-grade results were released this morning including 3m grading
2.11% uranium oxide, 9m at 0.62% and 6.5m at 0.82%.
Alliance finance manager Ian Pamensky told MiningNews.net today that once drilling is finished, the
company will validate the data then calculate and release a JORC-compliant estimate before the end
of the year.

The Beverley 4 Mile prospect lies about 10km from the Beverley uranium mine. Operator of the mine,
Heathgate Resources, is Alliance's joint venture partner at the Arkaroola project, which contains the
Beverley 4 Mile. Alliance has a 25% free-carried interest in Arkaroola to a decision to mine.

Meanwhile, at Arkaroola's M1 copper-gold prospect, results from one of two diamond holes drilled
mid-year have been returned.
The hole hit sulphide mineralisation associated with a hematite-magnetite breccia complex. The best
result from the hole is 10m at 0.32% copper from 264m, Alliance said.

The company is awaiting results of the second hole.
Shares in Alliance moved down in early trade but reversed the trend after the announcement. The
stock was up 8c (10.6%) at 89c by mid-morning.

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