The Board of Directors of Alliance Resources Limited...

The Board of Directors of Alliance Resources Limited (“Alliance”) has, reluctantly, resolved that its wholly owned subsidiary Alliance Craton Explorer Pty Ltd (“ACE”) should elect not to contribute to the Four Mile Uranium Project 2015 Program and Budget for the period 1 December 2014 to 31 December 2015 (2015 Program and Budget). This decision has been forced upon it due to Quasar Resources Pty Ltd's (“Quasar”) refusal to sell ACE's share of product from Four Mile (thereby depriving ACE of funds that it would have used to defray those expenses). The impacts of this decision are:

ACE will have no outgoings associated with Four Mile after December 2014 until 1 January 2016 (but may recommence contributions as at 1 January 2016); and

ACE's interest in the Four Mile Mine Development Area will reduce from 25% to approximately 15% by 31 December 2015 (based on the 2015 Program and Budget forecast expenditure).

This decision does not preclude ACE participating in programs and budgets beyond 31 December 2015, albeit at its reduced equity at that time and ACE will maintain its 25% interest, and continue to be free carried for exploration, in the area outside the Four Mile Mine Development Area.
ACE estimates its share of production from Four Mile as:

from commencement of mining to 30 November 2014, 367,1191 pounds (lbs) with an estimated value of $16.3 million2; and
from 1 December 2014 to 31 December 2015, 502,422 lbs with an estimated value of $22.3 million2;
being a total of 869,541 lbs with an estimated value of $38.6 million2.