Alara Resources : Mining and Procurement Progress at Wash-hi Majaza Project

Alara Resources Limited	Telephone |	[phone]
A.B.N. 27 122 892 719	Facsimile	|	[phone]
Suite 1.02, 110 Erindale Road,	Web	|	www.alararesources.com
Balcatta WA 6021, Australia	Email	|	[e-mail]

PO Box 963, Balcatta WA 6914

For personal use only

ASX/MEDIA RELEASE

7 March 2022

ALARA PROGRESSES MINING, ENGINEERING AND PROCUREMENT

ACTIVITIES AT OMAN COPPER-GOLDPROJECT

Investment highlights

• Alara continues to make significant progress at its joint venture copper-gold project in Oman
• First controlled blast conducted at the mine site
• New contracts awarded, with approximately 70% of procurement now completed
• General construction contracts now awarded.
• Separately, Alara has also been awarded an exploration drilling contract for the Al Rimal limestone project in southern Oman.

Perth, Australia: Alara Resources Limited (ASX: AUQ) ("Alara" or the "Company"), a base and precious metals explorer and developer with projects in Oman, is pleased to provide an update on its construction and procurement activities at the Al Hadeetha at the Wash-hi Majaza Copper-Gold Project in Oman. Alara owns a 51 per cent equity interest in the joint venture developing the project.

Pre-production activities commence at mining site

After formal commissioning of pre-stripping of Wash-hi Majaza pit in February 2022, pre-production activities at mine site during the month continued to focus on the following:

• Topsoil over the first cut area of pit stockpiled and stored for post mine rehabilitation
• First blast carried out under the supervision of Royal Oman Police, measuring the vibrations and sound impact over a 1km radius
• Excavation and transport of overburden and construction of waste rock dump platforms
• Extraction of top copper oxide ore and separate storage
• Excavation of 1200m long water diversion channel and settling (decant) tanks
• Construction of haul roads from the pit to ROM pad and waste dumping areas.

The images beginning over the page depict some of the recent progress achieved at the site.

For personal use only

Image 1: First controlled blast at Wash-hi Majaza site

Image 2: First cut mining activities and overburden and limited oxide copper ore removal

ASX Code | AUQ

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Image 3: Waste haulage road constructed

Image 4: Ore haul road under construction

ASX Code | AUQ

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Image 5: Topsoil storage

Image 6: Drilling in progress

ASX Code | AUQ

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Image 7: Water diversion channel

Project procurement 70% complete

Since the Company's previous update, Al Hadeetha Resources LLC continued to draw down on finance, using the capital for a number of new purchase orders and contracts. Total cumulative Capex stands at US$53.6 million in February 2022 which accounts for about 70% of total procurement packages. The figure over the page provides details of equipment and contracts already ordered/awarded as well as the progress of total procurement.

	No	Details package/equipment		Supplier	Country
1		Ball Mill, SAG Mill, Crusher		CITIC	China
	2		Rock Breaker		Metso-OT	Finland & India
3		Apron Feeder		L&T	India
	4		Pan Feeders		Metso-OT	India
5		Magnetic Separators		ElectroZavod	India
6		Accommodation Cabins Refurbished		Al Tasnim	Oman
7		Accommodation Camp Construction		Al Naba Infrastructure	Oman
	8		New Cabins - Dining, Offices etc.		Al Rehwan	Oman
9		Fencing		Al Naba Infrastructure	Oman
10		Conveyors		Al Tasnim	Oman
	11		Belt Weigher and Vibrating Screens		Schenck	India
12		Hydrocyclones		Weir	UAE
	13		Conveyor safety switches		Smart SAA	India
14		Construction of Access Road		Al Naba Infrastructure	Oman
	15		Pressure Filters		Matec	Italy
16		Regrinding Mill		Metso Outotec	USA
	17		Electrical Packages - Panels, Motors,		ABB		India
		Telecom
18		Transformers		Voltamp	Oman
19		Dust Collector		Stratgem Projects	India
20		Powerlines		ONEIC	Oman
	21		Agitator		Afromix	SA
22		Sampling and Analyzing System		Metso Outotec	USA
	23		Air Compressor		Bin Salim	Oman

ASX Code | AUQ