MANAGEMENT’S DISCUSSION AND ANALYSIS

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# Mar 2026

Source: https://investors.alkres.com/site/pdf/862f7d87-c706-4076-915b-7d82907112a3/Q3-FY2026-Managements-Discussion-Analysis.pdf?Platform=ListPage
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# Mar 2026
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE THREE AND NINE MONTHS ENDED
31 MARCH 2026
AS OF 14 MAY 2026
TABLE OF CONTENTS
OUR BUSINESS .......................................................................................................................................................... 3
Q3 2026 FINANCIAL & OPERATING SUMMARY, ..................................................................................................... 4
FINANCIAL AND OPERATIONAL DISCUSSION ....................................................................................................... 5
REVIEW OF OPERATING AND FINANCIAL RESULTS .............................................................................................. 7
CONSOLIDATED FINANCIAL RESULTS.................................................................................................................. 11
REVIEW OF FINANCIAL CONDITION .................................................................................................................... 15
NON-IFRS PERFORMANCE MEASURES ................................................................................................................. 18
CAPITAL MANAGEMENT ....................................................................................................................................... 20
OFF-BALANCE SHEET ITEMS ................................................................................................................................. 20
QUARTERLY EXPLORATION HIGHLIGHTS ............................................................................................................ 21
QUALIFIED PERSONS ............................................................................................................................................. 24
OUTSTANDING SHARE DATA ................................................................................................................................ 24
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS .................................................................... 24
Alkane Resources Limited - Third quarter 2026 Management’s Discussion and Analysis 1
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE QUARTER AND NINE MONTHS ENDED 31 MARCH 2026
This Management’s Discussion and Analysis (“MD&A”) should be read in conjunction with the condensed consolidated interim financial
statements and notes to the condensed consolidated interim financial statements of Alkane Resources Limited (“Alkane” or the
“Company”) for the three and nine months ended 31 March 2026, the Quarterly Activity Reports lodged with the Australian Securities
Exchange (“ASX”) and the Company’s 2025 audited consolidated financial statements and related notes, as well as other information
relating to the Company on the ASX website (www.asx.com.au), on file with the Canadian provincial securities regulatory authorities on
SEDAR+ at www.sedarplus.com and the Company’s website (www.alkres.com). The Company’s reporting currency is the Australian
dollar and all amounts in this MD&A are expressed in Australian dollars unless otherwise stated. The Company reports its consolidated
financial position, results of operations and cash flows in accordance with Australian Accounting Standards as issued by the Australian
Accounting Standards Board (“AASB”) and the International Financial Reporting Standards (“IFRS”) as issued by the International
Accounting Standards Board. The information provided in this document is not intended to be a comprehensive review of all matters
concerning the Company. No securities commission or regulatory authority has reviewed the accuracy or adequacy of the information
presented herein.
This MD&A contains references to Non-IFRS measures. Please refer to the Non-IFRS Performance Measures section for the list of these
measures and their definitions.
Cautionary Note Regarding Forward-Looking Information
Certain statements contained in this document constitute “forward-looking statements.” Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the
Company to be materially different from any future results, performance, or achievements expressly stated or implied by such forward-
looking statements. Such factors include, among others, the following: mining industry risks; fluctuations in the market price of mineral
commodities; project development; expansion targets and operational delays; environmental risks and hazards; requirement of
additional financing; health and safety; uncertainty as to calculations of mineral deposit estimates; marketability; licenses and permits;
title matters; governmental regulation of the mining industry; cybersecurity events; current global financial conditions including
inflation; currency risk; uninsured risks; competition; repatriation of earnings; properties without known mineral reserves; dependence
upon key management personnel and executives; dependence on major customers; infrastructure; litigation; potential volatility of
market price of ordinary shares; possible conflicts of interest of directors and officers of the Company; risk of dilution; payment
obligations relating to properties; instability of political and economic environments; and integration of acquisitions. Specific reference
is made to the Annual Information Form for a discussion of some of the factors underlying forward-looking statements. There can be no
assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Where we say “we,” “us,” “our,” the “Company” or “Alkane” we mean Alkane Resources Limited and/or one or more or all of its
subsidiaries, as applicable. The following abbreviations are used to describe the periods under review throughout this MD&A. All
amounts included in this MD&A are in Australian dollars (“$”), unless otherwise specified. The use of CAD refers to Canadian dollars, the
use of SEK refers to Swedish Krona, and the use of USD refers to United States dollars.
Abbreviation Period Abbreviation Period
FY 2026 1 July 2025–30 June 2026 FY 2025 1 July 2024–30 June 2025
HY 2026 1 July 2025–31 December 2025 HY 2025 1 July 2024–31 December 2024
Q1 2026 1 July 2025–30 September 2025 Q1 2025 1 July 2024–30 September 2024
Q2 2026 1 October 2025–31 December 2025 Q2 2025 1 October 2024–31 December 2024
Q3 2026 1 January 2026 –31 March 2026 Q2 2025 1 January 2025–31 March 2025
Alkane Resources Limited - Third quarter 2026 Management’s Discussion and Analysis 2
OUR BUSINESS
Alkane (ASX:ALK; TSX:ALK; OTCQX:ALKEF) is an Australia-based gold and antimony producer with a portfolio of three
operating mines across Australia and Sweden. The Company has a strong balance sheet and is positioned for further growth.
Alkane’s wholly owned producing assets are the Tomingley open pit and underground gold mine southwest of Dubbo in Central
West New South Wales, the Costerfield gold and antimony underground mining operation northeast of Heathcote in Central
Victoria, and the Björkdal underground gold mine northwest of Skellefteå in Sweden (approximately 750km north of
Stockholm). Ongoing near-mine regional exploration continues to grow resources at all three operations.
Alkane also owns the gold-copper porphyry Boda-Kaiser Project in Central West New South Wales. The Company has ongoing
exploration within the surrounding Northern Molong Porphyry Project and is confident of further enhancing eastern
Australia’s reputation as a significant gold, copper, and antimony production region.
On 27 April 2025, Alkane entered into an arrangement agreement (the “Arrangement Agreement”) with Mandalay Resources
Corporation (“Mandalay”), a British Columbia, Canada company with its common shares listed on the Toronto Stock Exchange.
Pursuant to the Arrangement Agreement, Alkane, through a wholly owned Canadian subsidiary, agreed to acquire 100% of the
issued and outstanding common shares of Mandalay by way of a statutory plan of arrangement under the Business
Corporations Act (British Columbia).
The transaction was approved by Alkane shareholders and Mandalay shareholders at separate meetings held on 28 July 2025.
Final British Columbia court approval was received on 4 August 2025, and the arrangement became effective on 5 August
2025. Pursuant to the Arrangement Agreement, Mandalay shareholders received 7.875 ordinary shares of Alkane for each
common share of Mandalay held immediately prior to the completion of the transaction.
At the date of this MD&A, the initial accounting for the business combination is provisional. The Company will recognise any
adjustments to the provisional amounts of assets and liabilities within twelve months of the acquisition date.
Alkane Resources Limited – Third quarter 2026 Management’s Discussion and Analysis 3
Q3 2026 FINANCIAL & OPERATING SUMMARY 4,5
Three months ended Nine months ended
(Expressed in Australian dollars thousands, except where indicated)
31 March 31 March
2026 2025 2026 2025
Financial Data
Revenue 274,374 63,204 678,324 184,704
Cost of sales 148,735 53,357 432,809 152,259
Gross profit 125,639 9,847 245,515 32,445
Net profit 92,991 8,097 157,888 21,189
Per share ("EPS" in cents) 6.81 1.34 12.44 3.51
EBITDA1 161,236 28,081 334,145 67,280
Cash operating costs per ounce gold eq. produced ($)1 2 2,037 2,037 2,086 2,020
All-in sustaining costs per ounce gold eq. produced ($)1 2 2,928 2,590 2,883 2,672
Average realised gold price ($ per ounce)1 6,315 3,839 5,752 3,608
Average realised antimony price ($ per tonne)1 34,394 - 38,578 -
Cash generated from operating activities 161,428 20,799 315,182 50,536
Sustaining capital expenditures1 24,305 7,010 59,885 25,067
Non-sustaining capital expenditures1 22,561 6,069 56,975 48,924
Total capital expenditure 46,866 13,079 116,860 73,991
Free cash flow1 127,608 7,667 213,041 (23,626)
Free cash flow per ounce gold eq. sold ($)1 2,942 464 1,814 (461)
1
Average realised gold and average realised antimony price, sustaining and non-sustaining capital expenditures, cash operating costs and all-in sustaining costs, free cash
flow, free cash flow per ounce gold eq. sold and EBITDA are non-IFRS performance measures with no standard definition under IFRS. Refer to the Non-IFRS Performance
Measures section of the MD&A.
2
Cash operating costs and All-in sustaining costs per ounce were previously calculated based on ounces sold. Since Q1 2026, the calculation methodology has been revised to
use ounces produced instead of ounces sold. Accordingly, the comparative figures for the previous quarter have been restated.
Three months ended Nine months ended
31 March 31 March
2026 2025 2026 2025
Consolidated Operating Data
Gold equivalent produced (ounces)3 45,776 17,657 119,950 50,927
Gold produced (ounces) 44,669 17,657 117,401 50,927
Antimony produced (tonnes) 377 - 768 -
Gold equivalent sold (ounces)3 43,373 16,513 117,467 51,298
Gold sold (ounces) 42,550 16,513 114,877 51,298
Antimony sold (pre-payability) (tonnes) 280 - 778 -
3
Gold equivalent ounces calculated by multiplying quantities of gold and antimony in period by respective average market price of commodities in each quarter, adding the two amounts
to get ‘total contained value based on market price’ and dividing that total contained value by the average market price of gold in each quarter. I.e., AuEq = ((Au Produced x Au $/oz) +
(Sb Produced pre-payability x 70% payability x Sb $/t)) / (Au $/oz). Accumulated gold equivalent ou

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