Alara Resources Limited

A.B.N. 27 122 892 719

Level 11, 216 St Georges Tce Perth WA 6000, Australia

GPO Box 2517

Perth WA 6831

Telephone | +61 8 9481 0389

Facsimile | +61 8 9463 6103

Web | www.alararesources.com Email | [email protected]

ASX/MEDIA RELEASE

Friday, 15 July 2016

DISPATCH OF PROSPECTUS FOR ENTITLEMENT OFFER

Alara Resources Limited (ASX: AUQ) (Alara or Company) is pleased to announce the dispatch today, 15 July 2016, of the Prospectus for a renounceable, pro rata offer of fully paid shares to eligible shareholders at an issue price of $0.02 each on the basis of 1 new share for every 7 shares held at 14 July 2016 to raise approximately $1.446 million (Entitlement Offer) as outlined to ASX on 8 July 2016.

Acceptances for the Entitlement Offer will close at 5:00pm WST on 2 August 2016.

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.

ASX Code | AUQ