CHAIRMAN’S LETTER TO SHAREHOLDERSThe past 12 months has been a...

CHAIRMAN’S LETTER TO SHAREHOLDERS

The past 12 months has been a period of significant transformation for Alliance from junior explorer with a relatively
modest profile to a better recognised company with equity in an emerging world-class uranium discovery.
At the Arkaroola Project in South Australia, our joint venture partner Quasar Resources Pty Ltd reported
continued exploration success at the Beverley 4 Mile uranium prospect. Quasar is an affiliate of Heathgate
Resources Pty Ltd, owner of the Beverley uranium mine.
Many outstanding drilling intercepts have been reported subsequent to year’s end, indicating that Beverley
4 Mile has the potential to be a significant uranium discovery by global standards. Quasar has conducted an
accelerated drilling program in 2006 aimed at establishing a mineral resource by December quarter 2006.
Alliance acknowledges Quasar’s excellent progress at Arkaroola and looks forward to a continued cooperative
relationship, as we move towards a maiden mineral resource estimate for the 4 Mile.
During the year Alliance awarded Stage 1 of its 100% owned Maldon underground development contract to
Deckoss Mining Pty Ltd, which mobilised in June 2006 and commenced refurbishment of the existing portal
in July. The decline will provide a platform for exploration drilling of the Eaglehawk Reef and infill drilling and trial
mining of the Alliance South gold lodes. Over the next 15 months the mining schedule involves 1900 metres of
decline advance, 190 metres of cross-cut development and 270 metres of ore driving.
Plans are in hand to upgrade the company’s Porcupine Flat gold ore processing plant and its associated water
handling facilities, so that we may mine and mill all the gold ore we delineate as part of this programme, thus
creating cash flow and cementing our place as a Victorian gold producer in our own right.
It promises to be an exciting time, as we open up highly prospective ground and it is our plan to put in place
safe and well run operations in Victoria, rather than relying solely on our JV partners in South Australia for
growth in our share value.
Alliance has developed a strong working relationship with the Maldon community and looks forward to positive
economic and environmental benefits resulting from these successful developments. We have put considerable
effort into our local community relations and thank the local community for its continued support.
The Board of Directors are optimistic that the 4 Mile uranium discovery is a company-maker and when
combined with the potential of Maldon to deliver a cash flow within 18 months, may prove to be the platform
that grows Alliance into a significant mining house.
The Company has made excellent progress with its key projects over the past year. Without doubt, our patient
and professional approach has brought encouraging results. It is now up to us to capitalise on them. To this
end, our team is growing steadily as we push ahead towards what we hope will be project feasibility, production
and further growth.
On behalf of the Board of Directors, we look forward to the next twelve months and take this opportunity to
acknowledge the contributions of our employees, consultants, contractors and joint venture partners. We also
thank our shareholders for the confidence shown in our team and support for our ongoing activities. The rising
share price over the last year has been pleasing for all and I hope that the next year will herald the initial steps
towards your company becoming a minerals producer as well as a minerals explorer.

Executive Summary @ 26 September 2006
Activities: Diversified mineral exploration
Issued Capital: 230 million shares & 8.12 million
unlisted options
Market Capitalisation: $177.1 million
($58.4 million @ 30 June 2006)
Cash reserves: $4.6 million @ 30 June 2006
Top 20 shareholders: 53.7%
Company Objective
Maximise shareholder wealth through successful exploration and
responsible, sustainable & profitable development of mineral deposits.
Corporate Strategy
1. Realise the full potential of the Beverley 4 Mile uranium
discovery and surrounds
2. Prove the concept that Maldon Gold Project is profitable in
order to assist with capital funding of Beverley 4 Mile.

Project Outlook (12 months)
Y Arkaroola Uranium, Copper-Gold Project, South Australia
:: Establish uranium mineral resource at Beverley 4 Mile
Western Zone
:: Commence feasibility study at Beverley 4 Mile Western Zone
:: Infill drill Beverley 4 Mile Eastern Zone
:: Locate hard rock source of Beverley 4 Mile uranium
:: Complete drill testing of M1 & M2 anomalies for copper-gold
Y Maldon Gold Project, Victoria
:: Explore for remnant gold lodes as decline progresses
:: Establish mineral resources at Alliance South
Y Warrina Copper-Gold Project, South Australia
:: Diamond drill BigNE magnetic/gravity targets for
IOCG copper-gold