QUARTERLY ACTIVITIES

REPORT

FOR QUARTER ENDED 30 September 2016

HIGHLIGHTS

EXPLORATION

• The 2016 exploration season was completed with two great targets defined in the 'Violet-Orion Zone'

• Target TCC4 in the Tin Camp Creek tenement (AGE 98% interest) has all the responses sought from a large concealed unconformity uranium deposit with similar interpreted characteristics to the nearby Jabiluka or Ranger deposits. It is the best target defined by Alligator since it began exploration in 2011. It is "drill ready"

• Target BT12 in the Beatrice Joint Venture tenement (AGE 51% interest) is the largest uranium pathfinder anomaly ever defined by Alligator. It is interpreted to be the surface "footprint" of a large uranium deposit beneath the covering sandstone. A ground geophysics program is being planned to bring this to the "drill ready" stage.

• Pathfinder element responses from additional sampling at Targets BT1 and BT2 in the Beatrice Joint Venture tenement were not encouraging enough to warrant further work.

• Alligator's review of the Razorback gold prospect in the Tin Camp Creek tenement showed potential strike extensions north and south but a modest stream sediment and soil sampling program revealed only isolated weak gold values and no significant uranium values.

  CORPORATE

• Alligator's Annual General Meeting is scheduled for 18 November 2016.

Alligator Energy

ABN 79140575604

Suite 3

36 Agnes Street Fortitude Valley, QLD 4006

Ph: (07) 3852 4712

Fax: (07) 3852 5684 ASX Code: AGE

Number of Shares: 359.9M Ordinary Shares 8.4M Unlisted Options

Board of Directors: Mr John Main (Exec Chairman)

Mr Paul Dickson (Non Exec. Director)

Mr Peter McIntyre (Non Exec. Director)

Mr Andrew Vigar (Non Exec. Director)

Mr Greg Hall (Non Exec. Director)

EXPLORATION

Overview

Alligator continued to focus its exploration efforts in the "province-scale" Violet-Orion Zone of uranium mineralization, anomalism and pathfinder elements that stretches for 40 kilometres across the company's Beatrice and Tin Camp Creek tenements. See Figure 1.

Uranium decay pathfinder element sampling of covering sandstone has been the principal tool used by Alligator to identify and define the footprint of large concealed unconformity uranium deposits. In 2016 samples collected from surface and from drill core and drill cuttings were used to locate and define anomalous pathfinder elements at BT1, BT2, BT12 and TCC4. Finding the mineral sought or in this case its direct radioactive decay products is the first step to successful discovery. The responses at BT12 and TCC4 were of the size and intensity sought.

Then for those areas with large and intense anomalous uranium pathfinder responses such as BT12 and TCC4 Alligator reviewed existing geophysical survey data. This was to identify not just basement geology but more importantly conductors in the basement rocks below the diffuse pathfinder anomalies in the sandstone. These could represent the responses of minerals directly associated with the uranium deposits sought and would be the focus for the drill holes to test that target.

An outstanding coincident sandstone pathfinder element anomaly and basement conductor anomaly within a favourable stratigraphic setting at Target TCC4 makes this the best target yet defined by Alligator in the Province.

At BT12 additional surface sampling of covering sandstone enlarged the initial pathfinder anomaly to 500m x 2000m and defined a sub parallel anomalous feature 500m north of this very large response. This is the biggest pathfinder anomaly defined by Alligator and has extremely anomalous pathfinder element values and ratios. The next step was to identify and define basement conductors to focus drilling. Unfortunately no appropriate geophysical survey data was available for this target area. Alligator's preferred technique of SAM geophysical surveying was not applicable so instead Alligator is likely to utilise the CSAMT geophysical technique. For scheduling, operational and budget reasons this survey was deferred until the next exploration season.

Additional sampling of sandstone and drill-hole material at the targets BT1 and BT2 in the Beatrice JV tenement showed that no further work is warranted.

Alligator's review of the Razorback gold prospect in the western part of the Tin Camp Creek tenement, defined by previous mineral explorers, showed it to be open to the north and south. It was of interest as a gold prospect but also as a different pathfinder response to a uranium deposit as some unconformity uranium deposits contain significant precious metal contents. A modest sampling program consisting of 71 stream sediment samples, 77 rock- chip samples and 141 soil samples revealed isolated high values restricted to very narrow quartz breccia structures, and no vector toward a possible uranium deposit was identified.

Figure 1: Violet -Orion Zone showing 2016 targets.

Tin Camp Creek

Three standout targets worthy of additional exploration are located within the Tin Camp Creek project tenure. TCC2, TCC4 and TCC13 are all located within the 'Violet-Orion Zone' defined in Alligator's ASX announcement dated 23 June 2016. Alligator focused on TCC4 in 2016

(i) TCC4

TCC4 has all of the characteristics sought by Alligator in a high quality drill target. Coincident strong extensive surface pathfinder element anomalism and strong coherent basement SAM conductor features are stand out features. Two holes drilled nearby in 2014 returned strong downhole pathfinder element anomalism and intense chlorite alteration within the preferred Cahill Formation host stratigraphy beneath the covering sandstone.

Re-logging, petrographic analyses and pathfinder element analyses of drill core from these two holes showed abundant graphite associated with uranium pathfinder elements within Cahill Formation units. Projecting these units up dip and along strike from the two drill holes to the unconformity showed they coincided with a zone of high pathfinder elements and a very strong conductor extending 2,500 metres along strike. In addition the intrusive dolerites near this feature show a second conductor response associated with chlorite alteration and have known uranium mineralisation.

Figure 2 below is an interpreted cross section built from the TCC4 pathfinder element, conductor and geological data. It shows two potential large unconformity uranium deposit targets and the drill holes required to test these.

Figure 2: TCC4: Schematic cross section showing drill targets.

The untested feature at TCC4 is the highest quality target yet generated by Alligator in the Province with the potential to yield a large, Jabiluka-style uranium deposit. However a modest amount of drill site access and clearance work is required to finalize actual drill sites.