Alliance Resources Ltd (Alliance) is pleased to announce assay results for the latest RC drilling campaign completed at the Weednanna Au-Fe Deposit (Weednanna), located 45 km north of Kimba on the Eyre Peninsula, South Australia.

During November and December 2020, 19 RC holes for 3,098 metres were drilled at Shoots 7 and 8 to define the limits of gold in the central area of the deposit. Drilling was completed using a 20 metre by 25 metre spaced drilling pattern to identify extensions to gold for classification in the Indicated resource category

The results from this drilling program have confirmed extensions to highgrade gold at Shoots 7 and 8 that are expected to increase the Indicated gold resource. Gold at both shoots remains unconstrained by drilling in at least one direction.

Most of the gold is located within 200m of surface in the southern half of the deposit and has been defined to Measured or Indicated resource category. The objective of the November and December RC drilling program was to expand this area towards the north in the central area of the deposit by testing the limits of high-grade gold at Shoots 7 and 8.

Most of the gold defined at Shoot 7 for the 2020MRE was classified as Indicated and no gold resource was defined for Shoot 8.

Shoot 7 is hosted within calc-silicate and magnetite skarn in an interpreted structural dilatational position near the hanging wall contact with granite and gneiss. Previous gold intersections into this shoot (used in the 2020MRE) include: 11.25m @ 2.3 g/t Au from 60m in 10WDDH012, 7m @ 16.7 g/t Au from 89m in 19WDRC051, 6m @ 6.2 g/t Au from 90m in 10WDRC072, and 12m @ 2.6 g/t Au from 91m in 19WDRC054.

Recent drilling at Shoot 7 consisted of 12 holes, for 2,150 metres, (20WDRC081-092) and has continued to define the extent of high-grade gold with significant intersections including: 8m @ 5.2 g/t Au from 92m in 20WDRC083, 11m @ 3.2 g/t Au from 84m including 1m @ 20.0 g/t Au from 88m in 20WDRC085, 9m @ 15.6 g/t Au from 85m including 4m @ 33.4 g/t Au from 87m in 20WDRC091, and 6m @ 4.3 g/t Au from 104m in 20WDRC092.

Shoot 8 is hosted within calc-silicate near the footwall contact with granite and gneiss, immediately to the west and south of Shoot 7. Previous gold intersections into this shoot have been narrow and moderate grade and consequently Shoot 8 was not included in the 2020MRE. Most of these gold intersections were identified during iron-focussed exploration and include: 1m @ 6.9 g/t Au from 73m in 08WDRC010, 2m @ 3.8 g/t Au from 68m in 10WDRC038, 3m @ 2.4 g/t Au from 116m in 08WDRC011, and 5m @ 3.5 g/t Au from 178m including 1m @ 12.2 g/t Au from 178m in 19WDRC050.

Recent drilling at Shoot 8 consisted of 7 holes, for 948 metres, (20WDRC074-080) and has intersected highgrade gold near the footwall contact and in a possible hangingwall splay with hole 20WDRC075 returning: 3m @ 5.5 g/t Au from 67m (Shoot 8HW), and 3m @ 9.1 g/t Au from 76m (Shoot 8).

The high-grade gold intersected at Shoots 7 and 8 remains open with further drilling planned to define their extent.

In November 2020, Alliance announced a gold and iron Mineral Resources Estimate (2020MRE) for the Weednanna Deposit of 1.106 Mt grading 4.3 g/t gold for 152,000 oz gold (classified 85% Measured & Indicated and 15% Inferred) and 1.15 Mt grading 59.4 % iron (classified as 65% Measured & Indicated and 35% Inferred). Refer to Alliance ASX announcements dated 9 November 2020 and 19 November 2020.

Current and Future Work

Alliance is completing feasibility level assessment into the commercial viability of establishing a 250,000 tonne per annum CIL gold producing operation at Weednanna using the 2020MRE. Metallurgical test work is complete and detailed engineering design of the gold processing facility has commenced. Mine design and cost analysis work is progressing, as are various other studies and agreements required to support the submission of a mining lease application and mining proposal.

Alliance is working towards submitting its application for a mining lease in Q3 2021. Further drilling is planned at Weednanna in H2 2021 to increase the size and upgrade Inferred resources to the Indicated category in the northern area of the deposit, thereby increasing mine reserves and extending mine life.

About Alliance

Alliance Resources Ltd is an Australian gold and base metals exploration company with 100% owned projects in South Australia and Western Australia. The Company's flagship project is the Wilcherry Project, located within the southern part of the Gawler Craton, approximately 45 km north of the township of Kimba, South Australia

The Mineral Resource estimate for the Weednanna Gold Deposit, part of the Wilcherry Project, is 1.106 Mt grading 4.3 g/t gold for 152,000 oz gold (classified 85% Measured & Indicated and 15% Inferred). Refer to ASX announcement dated 9 November 2020 for details concerning the Mineral Resource and the Competent Persons consent. The maiden iron resource for the Weednanna project was announced on 19 November 2020 and totals 1.15 Mt grading 59.4% Fe (classified as 65% Measured & Indicated and 35% Inferred). Refer to ASX announcement dated 19 November 2020 for details concerning the Mineral Resource and the Competent Persons consent. There is potential to increase the size of these Mineral Resources with further drilling

Alliance is not aware of any new information or data that materially affects the information included in the above-mentioned announcements. All material assumptions and technical parameters underpinning the above-mentioned Mineral Resource estimates continue to apply and have not materially changed.

An independent scoping study reported a positive outcome and supports a new, 250,000 tpa gold processing plant at Weednanna. Total indicative capital cost is approximately $44 million. Refer to ASX announcement dated 18 April 2019 for details concerning the scoping study including the above-mentioned financial information. All material assumptions underpinning the above-mentioned financial information continue to apply and have not materially changed.

Detailed Engineering design and Mine design studies have commenced to produce Detailed Feasibility Study (DFS) level designs and cost estimates for the gold processing plant and proposed open pit and underground mining operations. Alliance also owns an 80 person camp located on leased land in the township of Kimba which will be utilised during construction.

Contact:

Tel: +61 3 9697 9090

Fax: +61 3 9697 9091

Email: info@allianceresources.com.au

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