Alara Resources Limited: Project Update - Oman

Perth, May 13, 2016 - Further to the feasibility study findings announced earlier this month, Alara Resources Limited (ASX:AUQ) (OTCMKTS:ALULF) (FRA:AU5) (Alara or Company) provide this update on recent developments at the Al Hadeetha Copper-Gold Project in Oman (the 'Project').


Infill Drilling Program

The Project currently includes three exploration licences (Washihi, Al Ajal and Mullaq) covering an area of more 100sqkm, with a 14mt JORC Resource contained within the Washihi licence area.

In April, infill drilling was conducted on the Washihi licence. With drill spacing appropriate to the deposit geometry, the program is directed towards further increasing the size of the resource within the indicated category. Figure 1 in link below shows the location of historic, recent and proposed drill holes in relation to existing Washihi resource boundaries.

The drilling of three holes, namely WH16RD012, WH16RD013 and WH16RD014 has now been completed.

Geological observation of RC cuttings from these completed drill holes confirmed sulphide mineralisation as expected; however hole WH16RD012 appears to have intersected previously unknown mineralisation between 20 and 24m depths below an oxidised horizon. Detailed chemical analysis of samples will be completed to confirm the presence of copper mineralisation in this new zone.

Samples are now being dispatched to the laboratory for testing, with remaining drill holes due to be completed this month.


Community Meeting

Al Hadeetha Resources LLC recently held a community gathering and luncheon near the Washihi site (see images in link below). The luncheon was hosted by Alara's JV partner Sheikh Khalid bin Hamed bin Saif Al Busaidi. The event was attended by over fifty Omani nationals representing stakeholders from local communities, key government ministries, including the Public Authority of Mining, Ministry of Environment, Director General of Municipality, and officials from the local province (Wilayat).

The community meeting agenda included:

1. update on outcomes of the feasibility study;

2. discussion of key milestones going forward (e.g. mining licence grant and mine construction); and

3. questions and answers regarding the impact of the Al Hadeetha Project on the local community.

Sheikh Khalid Al Busaidi led the meeting and community interactions supported by key Government officials. The outcome of the discussions was very positive with good community support for the Project. This community feedback, coupled with subsequent meetings at relevant Ministry offices and recent public announcements on streamlining of approval processes, all bode well for Al Hadeetha's Washihi mining licence application.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/62227F8M


About Alara Resources Limited

Alara Resources Limited (ASX:AUQ) is an Australian-based 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



Contact

Alara Resources Limited
Justin Richard, Managing Director
T: +61-8-9481-0389
E: jrichard@alararesources.com

Elizabeth Hunt, Company Secretary
T: +61-8-9481-0389
E: cosec@alararesources.com