March 2016

Quarterly Activities Report‌‌‌‌

ABN 20 109 361 195

ASX Release

29 April 2016

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]oyres.com‌

Website:

www.alloyres.com

Directors

Executive Chairman:

Andy Viner

Non-Exec Director

Andre Marschke

Non-Executive Director/Co Sec:‌

Kevin Hart

Issued Capital Shares: 712,707,646

Unlisted Options:

9,000,000

ASX Symbol: AYR

HIGHLIGHTS

HORSE WELL GOLD PROJECT - W.A (40%)

• Manager Doray Minerals Limited completed an air-core drill program of 17,124 metres across three target areas during the quarter.

• The drilling was very successful in confirming the Django trends and defining new gold mineralisation under the Warmblood South soil anomalies.

• Infill air-core drilling at the Django Prospect has confirmed a number of +100 ppb gold trends;

  • The Western Trend covers a 1.5km x 300m area and now appears to have two pods within it, the southern one hosting the previously announced discovery hole of 22 metres @ 1.4 g/t Au from 36mdh.

  • An Eastern trend covering an area of 3km x 300m, which has at least two parallel anomalous zones.

• Warmblood South drilling defines gold mineralisation beneath soil anomalies;

  • 8 metres @ 0.8 g/t Au from 56 mdh

  • 3 metres @ 1.8 g/t Au from 52 mdh

• An RC drill program is planned to commence in the second week of May;

  • 3,240 metres testing beneath the strongest Django anomalies.

  • 1,260 metres testing in fresh rock beneath the Warmblood gold mineralised zone.

    PROJECT GENERATION

• Prospective gold and lithium targets pegged in W.A

  CORPORATE

• In April the Company completed a placement to raise

$1,320,000 before costs through a new share issue of 120,000,000 shares at a price of 1.1 cents. Bell Potter Securities Limited acted as Manager to the Placement.

Funds raised are primarily to meet the Company's 40% contributing interest in the Horse Well Joint Venture.

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March 2016 Quarterly Report Alloy Resources Limited Page 1 of 10

HORSE WELL GOLD PROJECT JOINT VENTURE (ALLOY 40% CONTRIBUTING)

Joint Venture partner and manager Doray Minerals Limited ('Doray') continued to explore the 1,000 square kilometre Horse Well Project during the quarter with a large regional air-core drill program. The Joint Venture is completing a minimum of $2 million in exploration expenditure during the 2016 calendar year as part of the final Stage 3 minimum Joint Venture commitment.

Figure 1 Horse Well location on regional geology

COMPLETED EXPLORATION

Joint Venture partner Doray Minerals Limited has completed the following activities during the quarter;

1. A substantial air-core drill program of 17,124 metres was undertaken during the quarter, targeting the Django, Warmblood South and Celia Shear areas.

2. Results have been assessed and RC drill programs planned for the June quarter of 2016.

Full exploration details including JORC 1 Table can be found in the Doray Minerals Limited (ASX:DRM) March 2016 Quarterly Report.

Drill Program

The drilling was all by air-core methods drilled to blade refusal which is normally the fresh rock level. The aim is to define geochemical trends within interpreted geological target areas. In particular the programs tested;

1. The "Django" prospect (formally the "T-06" target) was infill drilled to a 200 metre by 50 metre drill pattern to more clearly define the +100 ppb gold trends.

2. Soil anomalies at Warmblood South were tested with 80 metre spaced drill holes on eight drill lines.

3. The Celia shear target was tested by four drill lines. Drill Results

Django Prospect

This drill program was designed to infill the extensive +100ppb Au gold anomalism defined as two coherent trends at the Django prospect.

Figure 2 Django Prospect. March quarter 2016 air-core drilling, drill hole location diagram

Previously, 400 metre spaced lines had indicated that strong alteration and gold anomalism existed in two parallel trends within the area, and the latest drilling has now confirmed these anomalies as shown in Figure 3. The defined trends appear to correspond very well to a prospective structural corridor and an associated demagnetised zone (possibly representing a large alteration halo) interpreted from airborne magnetics.

The western trend extends over a strike length of at least 1.5km and a width of 300 metres. Infill drilling suggests there are two 'pods' within the trend, and the southern one remains the strongest where hole HWAC 112 intersected 22 metres at 1.4 g/t Au. Better results included;

HWAC358, 12 metres @ 0.2 g/t Au from 48 mdh HWAC396, 4 metres @ 1.1 g/t Au from 44 mdh HWAC633, 8 metres @ 0.4 g/t Au from 52 mdh

Figure 3 Django Prospect - aircore drilling anomalism and significant intercepts over 1vd aeromagnetics