Alara Resources Limited announced to update investors on construction work now underway on infrastructure that will supply process water for the Al Hadeetha Copper Project (Al Wash-hi Majaza Copper-Gold Project) in the northern region of the Sultanate of Oman. Alara owns a 51% equity interest in Al Hadeetha Resources LLC (AHRL) the joint venture developing the Project. Public-private STP upgrade and water supply: The works are being carried out in fulfillment of an agreement executed earlier this year between AHRL and Oman Water & Wastewater Services Company SAOC (OWWSC) to secure the critical process water supply for the duration of the Al Wash-hi Majaza Copper-Gold Project.

Key highlights of the agreement are: OWWSC will provide daily water supply to AHRL's copper concentrator plant via its sewage treatment plants (STPs) located near the Project site. The water will be priced at a fixed rate for the first five years of the agreement. AHRL will upgrade the capacity of an STP near the Al Mudhaibi township to 1800 cubic metres per day.

AHRL's investment in the STP upgrade will be recovered over the life of the agreement via water charge discounts. Ownership of the upgraded STP will ultimately be transferred to OWWSC. AHRL will transport the water from the STP to the Al Wash-hi Majaza Copper-Gold Project site.

Following agreement signing, a number of key milestones in the STP upgrade project were promptly delivered. The engineering, procurement and construction contract was awarded to a local company. Design and drawing requirements were settled with Haya, major equipment approvals obtained and all process equipment ordered, with construction activities now underway.