Alkane Resources : Quarterly Cashflow Report - 30 September 2017

+Rule 5.5

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

ALKANE RESOURCES LTD

35 000 689 216 30 September 2017

1. Cash flows from operating activities Year to date (3 months) $A'000

2. Receipts from customers

3. Payments for

4. exploration & evaluation

   36,417 36,417

   (3,309) (3,309)

   (b) development (5,308) (5,308)

   (c) production (16,600) (16,600)

5. staff costs (administration and corporate)(858) (858)

6. administration and corporate costs (1,287) (1,287)

7. Dividends received (see note 3) - -

8. Interest received 237 237

9. Interest and other costs of finance paid (5) (5)

10. Income taxes paid - -

11. Research and development refunds - -

12. Other (includes minerals royalties)(1,472) (1,472)

    1.9 Net cash from / (used in) operating

    activities 7,815 7,815

13. Cash flows from investing activities

14. Payments to acquire:

15. property, plant and equipment

    (432) (432)

16. tenements (see item 10) - -

17. investments - -

18. other non-current assets (10) (10)

    Consolidated statement of cash flows Currentquarter $A'000

19. Proceeds from the disposal of:

    Year to date (3 months) $A'000

20. property, plant and equipment - -

21. tenements (see item 10) - -

22. investments - -

23. other non-current assets - -

24. Cash flows from loans to other entities - -

25. Dividends received (see note 3) - -

26. Other (net movement in security deposits) (3,060) (3,060)

    2.6 Net cash from / (used in) investing

    activities (3,502) (3,502)

27. Cash flows from financing activities

28. Proceeds from issues of shares - -

29. Proceeds from issue of convertible notes - -

30. Proceeds from exercise of share options - -

    3.4	Transaction costs related to issues of shares, convertible notes or options	(2) (2)
    3.5	Proceeds from borrowings	- -
    3.6	Repayment of borrowings	- -
    3.7	Transaction costs related to loans and borrowings	- -
    3.8	Dividends paid	- -
    3.9	Other (provide details if material)	- -

    3.10 Net cash from / (used in) financing activities (2)(2)
31. Net increase / (decrease) in cash and cash equivalents for the period

    41,969	41,969
    7,815	7,815
    (3,502)	(3,502)
    (2) -	(2) -
    46,280	46,280

32. Cash and cash equivalents at beginning of period

33. Net cash from / (used in) operating activities (item 1.9 above)

34. Net cash from / (used in) investing activities (item 2.6 above)

35. Net cash from / (used in) financing activities (item 3.10 above)

36. Effect of movement in exchange rates on cash held

    4.6 Cash and cash equivalents at end of period
37. Reconciliation of cash and cash equivalents

    at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

    Current quarter $A'000 Previous quarter $A'000

38. Bank balances 17,552 6,432

39. Call deposits - 3,000

40. Bank overdrafts - -

41. Other (31 day notice deposit)28,728 32,537

    5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 46,28041,969
42. Payments to directors of the entity and their associates Currentquarter $A'000

43. Aggregate amount of payments to these parties included in item 1.2 $318

44. Aggregate amount of cash flow from loans to these parties included - in item 2.3

45. Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

    Payments to directors and/or companies associated with directors for: $A'000

    • Directors fees/corporate consulting fees $ 211

    • Executive director salary and superannuation $ 107

46. Payments to related entities of the entity and their associates Current quarter $A'000

47. Aggregate amount of payments to these parties included in item 1.2 $52

48. Aggregate amount of cash flow from loans to these parties included - in item 2.3

49. Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

    Payments to related entities of the entity and their associates $A'000

    • Administration/accounting and company secretarial fees $ 48

    • IT consulting fees and services $ 4

50. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A'000 Amount drawn at quarter end $A'000

51. Loan facilities - -

52. Credit standby arrangements - -

53. Other (please specify) - -

54. Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

55. 9.	Estimated cash outflows for next quarter	$A'000
    9.1	Exploration and evaluation	5,000
    9.2	Development	700
    9.3	Production	19,000
    9.4	Staff costs (administration and corporate)	700
    9.5	Administration and corporate costs	1,000
    9.6	Other (mineral royalties, property plant and equipment, repayment of borrowings)	3,500
    9.7	Total estimated cash outflows	29,900

    10.	Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
    10.1	Interests in mining
    tenements and
    petroleum tenements
    lapsed, relinquished
    or reduced
    10.2	Interests in mining tenements and	Tomingley, NSW

    petroleum tenements acquired or increased

    ELA 5555 Application0% 100%