ABN 20 109 361 195

ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2015

Corporate Directory

Directors

Mr Andrew Viner Executive Chairman

Mr Kevin Hart Non-Executive Director Mr Andre Marschke Non-Executive Director

Company Secretary

Mr Kevin Hart

Principal and Registered Office

Suite 6, 7 The Esplanade

Mt Pleasant, Western Australia 6153 Telephone: (08) 9316 9100

Facsimile: (08) 9315 5475 Website: www.alloyres.com

Auditor

KPMG

235 St George's Terrace Perth, Western Australia 6000

Share Registry

Security Transfer Registrars Pty Ltd 770 Canning Highway

Applecross, Western Australia 6153 Telephone: (08) 9315 2333

Facsimile: (08) 9315 2233

Stock Exchange Listing

The Company's shares are quoted on the Australian Securities Exchange. The Home Exchange is Perth, Western Australia.

ASX Code

AYR - Ordinary shares

Corporate Governance

The Company has adopted the 3rd Edition of the ASX Corporate Governance Recommendations.

A summary statement which has been approved by the Board together with current policies and charters is available on the Company website.

(Click the following URL) http://www.alloyres.com.au/company-corpgov.php

Alloy Resources Limited and its Controlled Entities ABN 20 109 361 195

Contents Page

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Alloy Resources Limited and its Controlled Entities ABN 20 109 361 195

Chairman's Letter

Dear Fellow Shareholders,

It was a positive year for Alloy Resources notwithstanding low levels of market support for junior resource companies against the backdrop of a softening of the gold price and general weakness amongst commodities.

Alloy was able to maintain drilling activity on our principal project Horse Well by way of funding from our strong Joint Venture partner Doray Minerals Limited, who have this year committed to the second stage of their earn-in which will see a further one million dollars of exploration expenditure before May 2016. Drilling is underway and results are eagerly awaited.

One of the bright lights in the resource industry that has gone largely unnoticed is the Australian dollar gold price which has remained strong over the last year and seen consolidation within the Australian producers and active exploration occurring at mines and brownfields projects. The Horse Well Gold Project is very well located being adjacent to Northern Star's Jundee Gold Mine and hence has strategic value in the region especially if a major discovery is made.

We and our Joint Venture partner believe there is a major gold system present at Horse Well which has potential to yield a new stand-alone gold Project, and we believe the coming year will be very exciting as exploration continues.

Doray has confirmed extensive gold mineralisation at the Dusk til Dawn prospect which will now see pattern RC drill testing during the September quarter. This prospect has illustrated the potential of the regional Crack of Dawn target area and initial regional air-core drill testing has located numerous new targets which are to be followed up during the second year of the Joint Venture.

The Company has actively been looking for a new project that can add value for shareholders. This task has been difficult given current market conditions so low entry costs and inexpensive testing of targets have been primary parameters.

One such opportunity has been advanced in South Australia with the acquisition of 830 square kilometers of land containing an under-tested copper target at Martins Well. Sampling of historical drill core has been very encouraging, defining copper mineralization within a highly weathered gossan structure of over two kilometers strike length. This project justifies deeper drill testing either by a farm-in partner or by the Company should market conditions improve.

The Company will continue with project generation in the search for value-adding opportunities.

Thank you for your continued support and we look forward in anticipation of the results to flow from Horse Well and new project acquisitions.

Andy Viner

Executive Chairman

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