Alliance Resources : Aircore Drilling Completed - Nepean South Project

22 January 2018

ALLIANCE RESOURCES LTD

ASX: AGS

ABN: 38 063 293 336

Market Cap: $14.6 M @ $0.14

Shares on issue: 104,293,923

Principal Office:

Suite 3, 51-55 City Road Southbank Victoria 3006 AUSTRALIA

Tel: +61 3 9697 9090 Fax: +61 3 9697 9091

Email:info@allianceresources.com.au

Web:www.allianceresources.com.au

Projects:

Wilcherry JV, SA (61.36%): gold and base metals

Nepean South, WA (100%): nickel-gold

Gundockerta Sth, WA (100%): nickel-gold

Share Registry: Computershare Investor Services

GPO Box 2975 Melbourne Victoria 3001 AUSTRALIA

Tel: 1300 850 505 Fax: +61 3 9473 2500

AIRCORE DRILLING COMPLETED

Nepean South Project

Alliance Resources Ltd (Alliance) is pleased to announce the completion of aircore drilling at the Nepean South Project, targeting gold mineralisation.

The Nepean South Project is located 26 km southwest of Coolgardie in Western Australia and is prospective for both komatiitic-hosted nickel sulphide deposits and greenstone-hosted orogenic gold deposits.

Ninety aircore holes were completed for a total 4,392m. This first phase of aircore drilling is designed to test for low-level gold in regolith anomalism beneath a gold-in-soil sampling anomalism that can be used to vector towards a primary gold deposit. Drilling was completed on a 160m x 320m spaced grid.

The samples have been submitted for assay and the results are expected in 3 to 4 weeks time.

Refer to Alliance's ASX announcements dated 25 October 2017 and 11 January 2018 for further details.

Alliance is an Australian gold and base metals exploration company with projects in South Australia and Western Australia.

The Company's flagship project is the Wilcherry Project Joint Venture (Alliance 61.36% and increasing), located within the southern part of the Gawler Craton in the northern Eyre Peninsula of South Australia. The Project is prospective for gold and base metals, including tin, zinc-lead-silver.

The Weednanna prospect is the most advanced gold prospect at Wilcherry. Three RC drilling programs were completed in 2017 at Weednanna to test four areas of discrete historic high grade gold intercepts. These drilling programs have demonstrated that the high grade gold shoots are ovoid to rod-like in geometry and have continuity along strike. Close-spaced drilling is required for accurate definition. Further drilling is scheduled in February 2018.

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