HORSE WELL GOLD PROJECT

- Dusk til Dawn RC Drilling confirms Gold Discovery

ABN 20 109 361 195

ASX Release

21 October 2015

Alloy Resources Ltd Suite 6, 7 The Esplanade Mount Pleasant WA 6153

Tel: +61 8 9316 9100

Fax: +61 8 9315 5475

Email:

[email protected]

Website:

www.alloyres.com

Directors

Executive Chairman:

Andy Viner

Non-Exec Director

Andre Marschke

Non-Exec Director/Co Sec:

Kevin Hart

Issued Capital Shares: 489,582,656

Unlisted Options:

33,142,821

ASX Symbol: AYR

SUMMARY

Alloy Resources Limited (ASX:AYR, Alloy or the Company) wishes to advise the market that Farmin Partner Doray Minerals Limited (ASX:DRM, Doray) has today released results from follow-up RC Drilling completed at the Dusk til Dawn prospect within its Horse Well Gold Project.

Key Points;

Doray completed an 18 hole deep RC drill program across the Dusk til Dawn mineralised structure during July-August.

These holes were highly successful in defining a thick zone of gold mineralisation which remains open along strike and down-plunge at depth.

The Company regards these results as confirming a significant new gold discovery in the Western Australian Goldfields;

• More zones of high-grade mineralisation intersected in RC Drill Hole DDRC014;

  16 metres @ 7.2 g/t Au from 109mdh, including

  6 metres @ 16.3 g/t from 116mdh

• Numerous holes intersected thick moderate grade gold mineralisation such as Hole DDRC015;

44 metres @ 1.4 g/t Au from 140mdh.

Doray have also commenced a substantial 15,500 metre air-core drill program testing regional targets in the northern part of the Horse Well Project.

Alloy Executive Chairman, Andy Viner, commented 'Drilling has confirmed a major new gold discovery in the Western Australian Goldfields. Doray's systematic approach has proven to be highly effective and it is evident from the results to date that this part of the project has extensive gold mineralisation and further regional drilling is likely to enhance the overall prospectivity and potential of the area.'

Doray's ASX release is attached.

Andy Viner

Executive Chairman Phone: +61 8 9316 9100

www.alloyres.com

ASX Announcement

21st October 2015

DRILLING INTERSECTS WIDE ZONES OF GOLD MINERALISATION AT DUSK 'TIL DAWN

• Intersections of significant thick zones of gold mineralisation confirm a new greenfields gold discovery at 'Dusk 'til Dawn'

• Results up to:

  • 16m @ 7.2g/t Au from 109mdh (DDRC014), including 6m @ 16.3g/t Au

  • 44m @ 1.4g/t Au from 122mdh (DDRC015)

• Results significantly upgrade the potential for further discoveries at Horse Well

• Extensive aircore drilling program recommenced over regional targets

Doray Minerals Limited (ASX:DRM, Doray, the Company) is pleased to announce that RC drilling recently completed at the Horse Well JV Project has intersected thick zones of gold mineralisation confirming the Dusk 'til Dawn Prospect as a significant new greenfields gold discovery.

The Horse Well Gold Project ('Horse Well') is located in the North East Yilgarn of Western Australia, approximately 50km north of the Jundee Gold Mine. Doray signed a farm-in Agreement with ASX-listed Alloy Resources Limited (ASX:AYR, 'Alloy') over the Project in May 2014 and can earn up to 80% through the expenditure of $4 million within 3 years. Doray has spent $1.75 million to date, with an additional $0.25 million to be spent by 22 May 2016 to earn an initial 60% of the Project.

Doray's Managing Director, Mr Allan Kelly, said the new results have enabled Doray's exploration team to further confirm the orientation and style of the gold mineralisation encountered at Dusk 'til Dawn.

'The wide zones of mineralisation, along with favourable host rock geology and structural settings and some higher grade gold zones all lead us to believe that Dusk 'til Dawn is a significant new greenfields gold discovery, but is only the first of several potential opportunities within the wider Horse Well Project'.

Dusk 'til Dawn RC Programme

The Dusk til Dawn Prospect forms part of the Horse Well JV Project and is located at the extreme northern end of the Archaean Yilgarn Craton, close to the onlap of the Proterozoic Earaheedy Basin (see Figure 1). Dusk til Dawn occurs in a structural embayment on the western edge of a granitoid body (see Figure 2), in a similar setting to the Granny Smith gold deposit.

Doray previously announced the potential for a new greenfields gold discovery at Dusk til Dawn, following a number of significant drill intersections up to 65m @ 2.6g/t Au, including 13m @ 8.17g/t Au (see ASX release dated 10 December 2014). The recently completed RC drill programme was designed to further systematically drill this gold mineralisation, in order to provide a robust 3-dimensional orientation on the mineralisation and controlling geological features. A total of 18 holes for 3,940m of RC were drilled in this programme.

Drilling intersected a host geology package consisting of steeply dipping dacitic and andesitic intermediate volcanic rocks. A wide, moderately NE dipping shear zone is developed, with orientation thought to be controlled by the nearby granitic intrusive body. Mineralisation intersected is characterised by biotite and silica alteration of host volcanic units and a broader pyrite mineralised envelope is also present within the mineralised system.

In addition, two zones of shallower flat-lying supergene mineralisation have also been defined, reflecting the position of redox fronts within the weathering profile. Figures 3 and 4 highlight the mineralisation intersected at Dusk 'til Dawn to date.

Significant assay results received from the recent drilling include:

• DDRC014 - 16m @ 7.2g/t Au from 109mdh, including 6m @ 16.3g/t Au from 116mdh

• DDRC015 - 44m @ 1.4g/t Au from 122mdh, including 3m @ 6.2g/t Au from 150mdh

• DDRC011 - 31m @ 1.2g/t Au from 153mdh

• DDRC012 - 24m @ 1.6g/t Au from 190mdh, including 4m @ 4.0g/t Au from 200mdh

• DDCR016 - 28m @ 1.5g/t Au from 148mdh

• DDRC017 - 14m @ 2.0g/t Au from 41mdh, including 4m @ 4.4g/t Au from 46mdh

• DDRC018 - 14m @ 1.5g/t Au from 33mdh;

  and - 9m @ 2.1g/t Au from 98mdh, including 2m @ 4.9g/t Au from 103mdh

  
  

  Details of significant results from the recent drilling, as well as relevant JORC Table 1, are included in the appendices.

  
  

  The drill programme not only successfully confirmed the orientation and tenor of mineralisation at Dusk til Dawn, but has also confirmed the presence of significant mineralised fluids over a wide area within the broader northern Horse Well project area. This has enhanced the overall project prospectivity and potential to host significant gold endowment, with Dusk 'til Dawn the first discovery amongst several prospects to be tested.

  
  

  Drilling of regional targets commenced

  
  

  Following on from this successful programme, Doray is actively pursuing a number of additional earlier- stage targets within the northern end of the broader Horse Well project area. To this end, a significant aircore drilling programme is commencing this week, with a planned 15,500m of drilling.

  
  

  This air core drilling programme will test other favourable gold targets around the Dusk 'til Dawn granite body, including:

• a potential footwall zone at Dusk 'til Dawn,

• additional 'look-alike' conceptual targets to Dusk 'til Dawn, and

• the 'Django' prospect (formerly the 'T-06' target) that has returned anomalous gold results from a single line of aircore drilling carried out by Doray last year.

  
  

  The drilling programme is expected to take approximately 6 weeks to complete.

  
  

  -ENDS-

  
  

  For further information, please contact:

  Allan Kelly Margie Livingston

  Managing Director Associate

  Doray Minerals Limited AMN Corporate

  +61 (08) 9226 0600 +61 (0)438 661 131

  [email protected] [email protected]

  About Doray Minerals Limited

  
  

  Doray Minerals Limited is a high-grade Australian gold producer, developer and explorer with two high- grade Western Australian gold assets: the operating Andy Well Gold Project (Andy Well); and the Deflector Gold Project (Deflector), currently under construction and due for first production mid-2016.

  
  

  Doray has a strategic portfolio of gold exploration properties within Western Australia and South Australia and each presents multiple discovery opportunities. The Company's Board and management team has expertise in discovery, development, and production.

  
  

  About the Horse Well Joint Venture

  
  

  Doray Minerals Ltd and Alloy Resources Ltd have entered into a binding Heads of Agreement over the Horse Well Project, which will be more fully documented in a formal Farm-in Agreement. Key Terms agreed are listed below:

• Doray to spend a minimum $900k within the first 12 months of Commencement before withdrawal.

• Doray to manage the JV with field input from Alloy for, at least, the initial minimum commitment period.

• Once the minimum commitment is met, Doray can elect to earn an initial 60% with a further spend of $1 million within 24 months of Commencement (i.e. total spend of $2 million to earn 60%).

• Doray can elect to spend a further $2 million within 36 months of Commencement to earn 80%.

  o Alloy can elect to contribute pro rata to this $2M and continue through to Pre-Feasibility Study (PFS) or dilute to 20% using an industry standard formula, whereby Doray can earn up to 80%.

• Alloy can elect to contribute from PFS onwards (i.e. Definitive Feasibility Study, Decision to Mine and operational JV) or dilute to 1% Net Smelter Royalty using an industry standard formula.

Competent Person Statements

The information in this announcement that relates to Exploration Results is based on information compiled by Mark Cossom. Mr Cossom is a full time employee of Doray Minerals Ltd and is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Cossom has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activities, which he is undertaking. This qualifies Mr Cossom as a 'Competent Person' as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Cossom consents to the inclusion of information in this announcement in the form and context in which it appears. Mr Cossom holds shares and options in Doray Minerals Ltd.