Announcement, page-9

Good to see AL8 coming back to life. In addition to the Kennecott drill results, as per their last quarterly report on 24 July, there is plenty of areas for potential news flow near term.


Alderan Resources Limited (ASX: AL8) (“Alderan” or “the Company”) is pleased to provide its quarterly
activities report for the three-month period ending 30 June 2020. The commodity focus of Alderan is the
discovery of high margin gold and copper deposits in the Western USA.

Tamra Option Agreements (Cu-Au-Mo)

In April 2020, Alderan signed Option Agreements with Tamra Mining Company LLC to acquire up to a 70%
interest in the highly prospective Valley/Crossroads copper-gold and Detroit gold/copper/molybdenum
projects in Utah, USA.

During the quarter, the Company successfully completed capital raising activities, raising approximately
$2.1 million, with proceeds to be used to complete an initial program at both projects. The Company has an
option to spend US$1 million on exploration at Valley/Crossroads and US$250,000 at Detroit prior to April
2021.

Alderan has commenced exploration activities, including geological, geochemical and geophysical surveys,
and is nearing completion of compilation and digitisation of historical exploration data from the past 100
years.

Figure 1: Alderan Project Locality Map showing its projects in Utah, USA.

Detroit Mining Project

The Detroit Mining Project is located about 56km northwest of Delta, Utah, and is host to a range of
mineralisation styles. The location of the Project and adjacent areas is shown on the index map (Figure 1),
with the focus of Alderan’s exploration efforts in the Drum Mountains, being a discovery of a Carlin-like gold
deposit. Carlin-like deposits have a number of key features:
a) Favorable permeable reactive rocks (silty limestones and limey siltstones);
b) Favorable structures;
c) Gold-bearing hydrogeochemical solutions;
d) Micron sized gold in disseminated pyrite;
e) Common geochemical indicators As, Sb, Ba, Te, Se, Hg;
f) Fairly common carbonaceous material.

Alderan has completed detailed geological mapping initially indicating that most of these parameters are
satisfied. In addition, Alderan has found previous drill results on the Mitzpah Prospect, which are currently
being compiled, that include 2,889m of drilling from 124 shallow vertical holes in the gold oxide cap,
averaging 23m depth. The company expects to report further on this once the compilation is complete.

Alderan has defined a drill program which is currently being permitted. Details will be released once
finalised with drilling likely to commence in late September.

Detroit semi-regional

Semi-regional BLEG/Stream geochemistry has been completed, prepared and sent for assaying with
results expected during August. Alderan has also completed semi-regional geological mapping to better
understand the mineralisation styles and controls.

Valley-Crossroads Project

Valley-Crossroads is adjacent to the Company’s existing Frisco project in Utah. Alderan is targeting
porphyry and skarn mineralisation, as well as sediment hosted gold.

Alderan has completed an airborne magnetic and radiometric survey. 3D inversion of all of the magnetic
data has been completed to determine geometries, depths to magnetic bodies and magnetite content. The
company has acquired ASTER hyperspectral data over the district, and processed it to highlight various
mineral alteration assemblages. Compilation and validation of previous historic exploration data has been
fast tracked, in conjunction with field inspection and mapping.

A first soil geochemical survey at Gold Peak has been planned and is being completed. A semi-regional
stream/BLEG survey will commence after the soil geochemical survey.

The above initial exploration works will be used as input into drill targeting, which is to be completed in
August.

White Mountain Project (Au)

The White Mountain project is 10km southwest of the Frisco Project. Alderan has completed and compiled
ground geological mapping at the White Mountain Epithermal Gold Project. Further geological appraisal is
planned. Alderan has planned a high resolution, deep penetrating Induced Polarisation survey to be
completed in August in preparation for drilling in October, subject to results of the survey.


Frisco Project (Cu-Au-Zn-Ag)

During the quarter, Kennecott Exploration Company (“Kennecott”), a subsidiary of Rio Tinto plc,
commenced exploration on Alderan’s Frisco copper/gold/silver project in Utah, USA. Kennecott is earning
up to 70% interest through exploration expenditure on the project.

Previously, Kennecott conducted field visits to assess ground conditions and determine logistics and safety
requirements to support an initial drill program. Kennecott spent several weeks reviewing selected drill holes
to understand the geology and planned an initial diamond drill program to follow up high-grade intersections
at the Cactus Breccia and Accrington Skarn targets, as well as a deeper hole testing the Reciprocity IP
Anomaly.

Kennecott and Alderan’s subsidiary, Volantis Resources Corp., worked closely with the Utah Division of Oil,
Gas, and Mining to permit near term drilling activities. A total of 15 previously permitted drill sites were
removed from Volantis’ existing permits and moved into a permit under Kennecott.

During May 2020, Kennecott commenced an initial four-hole 2,000m drill program to test targets at the

Cactus Breccias, Accrington Skarn and Reciprocity areas including:
▪ At the Cactus Breccias, a hole to test for possible continuity between the Cactus and Comet Breccias.
▪ At Accrington Skarn, a hole to test an approximately 50m step-out from significant historic intercepts and to help determine continuity in the area.
▪ At the Reciprocity target, a deeper hole is planned to test the IP anomaly where, based on Kennecott remodelling of geophysical data, a previous hole drilled by Volantis may have been terminated before reaching the anomaly depth.

Progress has been slow due to COVID-19 related protocols. RTX has now received assays from the first
Cactus hole. They are doing their QA/QC checks and other internal sign-offs required to release data to JV
partners. We anticipate receiving assay results shortly. Further drilling will be dependent on results of the
initial program.

This drill program forms part of the first earn-in stage for Kennecott’s option to acquire a 55% project interest
in Frisco by spending a total of US$6 million of expenditure. Kennecott will earn 70% of the project by
completing three stages which will total US$30 million exploration expenditure.

Other

Alderan is also continuing to appraise other opportunities as they arise. Corporate Activities