ASX/MEDIA RELEASE

Friday, 8 July 2016

FURTHER INFORMATION AND PROJECT UPDATE: AL HADEETHA COPPER-GOLD PROJECT IN OMAN

Alara Resources Limited (ASX: AUQ) (Alara or Company) refers to its ASX Announcement of 1 July 2016 "Oman Project Update: Infill Drilling Program at Washihi Complete", specifically Table 1 below.

Since July 2013, Table 1 has appeared in many Alara ASX Announcements. Alara's ASX Announcement of 14 June 2016, noted that this table had been updated (from JORC Code 2004) to comply with JORC Code 2012, on the basis that the information had not materially changed since it was last reported.

The Company confirms that it is not aware of any new information or data that materially affects the information included in Table 1 and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

However, in light of the additional high grade mineralisation identified during the recent drilling program at Washihi, reworking of the resource model will now be undertaken to determine the extent to which (if at all) the additional mineralisation, that was previously unknown, changes the resource model.

This reworking of the resource model cannot be completed until all drill-hole results have been received. The third and final batch of samples from the infill drilling program was dispatched to the laboratory on Monday. The laboratory has confirmed receiving the second batch of samples on 30 June 2016. Further results will be released as soon as possible.

TABLE-1 WASHIHI JORC RESOURCES

The information in this JORC Resource table was prepared and first disclosed under the JORC Code 2004 and has now been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Competent Person Statement

The information in this report that relates to JORC Resources in relation to the Al Hadeetha Copper-Gold Project (Oman) is based on, and fairly represents, information and supporting documentation prepared by Mr Ravi Sharma, who is a Chartered Member of The Australasian Institute of Mining and Metallurgy. Mr Sharma is a principal consultant to Alara Resources Limited. Mr Sharma has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking to qualify as a Competent Person as defined in the JORC Code, 2012 edition. Mr Sharma approves and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Exploration Results has been compiled by Mr Atmavireshwar Sthapak who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Sthapak is an Executive Director of Alara Resources Limited. Mr Sthapak has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code)." Mr Sthapak consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

For further information, please contact:

Justin Richard T | +61 8 9481 0389

Managing Director E | [email protected]

Elizabeth Hunt T | +61 8 9481 0389

Company Secretary E | [email protected]

About Alara Resources

Alara Resources Limited (ASX: AUQ) is an Australian minerals exploration company with a portfolio of projects in Saudi Arabia and Oman. Alara has completed a Definitive Feasibility Study on the Khnaiguiyah Zinc-Copper Project in Saudi Arabia, an Advanced Scoping Study on the Daris and Al Hadeetha Copper-Gold Projects in Oman and a Feasibility Study for the Al Hadeetha Project, Washihi deposit. The Company is transitioning to establish itself as a base and precious metals mine development and production company. For more information, please visit: www.alararesources.com