Deep Drilling Intersects Epithermal Mineralisation 1 km Below Proprietary Pit at Peak Hill

PERTH, Australia, Oct. 14, 2026 (GLOBE NEWSWIRE) — Alkane Resources Limited (ASX: ALK, TSX: ALK, OTCQX: ALKRY) (‘Alkane’) is pleased to announce the latest exploration results at its Peak Hill Gold Project (Peak Hill) in New South Wales.

Summary

• Alkane was awarded an NSW Critical Minerals exploration grant of $165,000 to explore for a copper-gold porphyry at Peak Hill.
• One diamond core drill hole (PHD084), was completed to 1,651 m, intersecting transitional phyllic alteration beneath the Great Eastern open cut suggesting the targeted porphyry environment may be deeper. A study has been commissioned to evaluate the proximity of possible porphyry intrusives to PHD084 before further testing this target.
• Deeper down hole and approximately 1 km vertically below the Proprietary open cut, PHD084 intersected the same advanced argillic alteration (pyrophyllite-silica) similar to that mapped at surface, indicating a strong vertical continuation of the previously mined epithermal mineralisation.      
• Assays show elevated gold and copper within the sulphide mineralisation although at lower grades than seen within the drilling approximately 1km above within the core of the deposit. This lower tenor may be indicative of the beginning of a transitional zone to the porphyry setting or the drilling simply intercepted the system on the periphery.
• 6,600m of drilling is planned to commence in November to test the area between PHD084 and the Proprietary Inferred Resource. The aim of the drilling is to assess the vertical continuity of grade and to ascertain whether the PHD084 may have missed the high-grade core of the system.

Drilling result highlights

Intercepted mineralisation within epithermal to porphyry traditional environment:

• 0.42 g/t Au over 6.4m from 1,000.6 metres including;
  • 1.02 g/t Au over 2m.       

Interpreted 1km depth extension to the Peak Hill epithermal system:

• 0.11g/t Au and 0.02% Cu over 153m including;
  • 0.46 g/t Au and 0.06% Cu over 4.8m.

Alkane Managing Director, Nic Earner, said:

“The NSW Critical Minerals Exploration grant supported Alkane to drill a very deep hole beneath Peak Hill, exploring for a copper-gold porphyry system. Whilst the hole did not resolve the target, it did highlight the potential for the shallow epithermal gold resource at Peak Hill to extend to a significant depth below the Proprietary pit. The drilling highlights the potential for mineralisation to continue at significant depth beneath Peak Hill and identifies a substantial area for further exploration. Follow-up drilling is set to commence in 2026 and aims to delineate scale of epithermal gold deposit whilst also providing further system information and vectoring towards a potential copper–gold porphyry system below.”

Peak Hill Gold Project

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The Peak Hill Gold Project (Peak Hill) is located on a group of Mining Leases about 60 km southwest of Dubbo in the Central West of NSW, and only 10 km south of Alkane’s operating Tomingley Gold Operations (TGO) (Figure 2). Peak Hill was a fully operational open pit gold mine operated by Alkane that is currently under care and maintenance. There are four pits, the main Proprietary-Parkers Pit and three satellite pits, Bobby Burns, Crown and Great Eastern.

The oxidised cap of the Peak Hill system was mined by Alkane from 1998 to 2005. The refractory sulphide orebody beneath the pits has a JORC (2012) Inferred Resource of 1.02Mt grading 3.29g/t Au and 0.15% Cu¹. Gold and copper metal prices have significantly increased since this resource was estimated, and the project has justified further examination.

In 2025, Alkane was awarded a NSW Critical Minerals and High-Tech Metals Exploration Program collaborative grant of $165,000 to drill a deep hole beneath the Peak Hill epithermal gold deposit to explore for a copper-gold porphyry that is likely causing the epithermal gold mineralisation at Peak Hill.

The Peak Hill deposit is interpreted as a high sulphidation epithermal gold system likely caused by a deeper magmatic source. This style of deposit is well documented globally, although usually in better preserved younger geological terrains than the Ordovician volcanic provinces of the Macquarie Arc in NSW.

The deposit is hosted by strongly deformed and hydrothermally altered Ordovician volcanic rocks of the Mingelo Volcanics that is also host to the Tomingley orogenic gold deposits. The Mingelo Volcanics are predominantly andesitic volcaniclastic breccias, lesser sandstone/siltstone units, black mudstones, and lavas with minor intrusives.

Figure 1. Schematic model of Peak Hill in the porphyry-epithermal environment.

The hydrothermal alteration is evident over a 3 km long by 0.5 km wide north-south trending zone that appears to be focused on coarser grained permeable breccias and volcaniclastic rocks, with coherent andesite lavas significantly less altered. The core of the alteration envelope is an elliptical zone (500 m by 400 m) of advanced argillic alteration (extensive pyrophyllite and muscovite-illite alteration with residual silica-pyrite mineralised zones). High pyrite concentrations, with the copper sulphide assemblage dominated by enargite, tennantite and luzonite, are often focused within higher grade structures within the residual silica-pyrite zones.

A 2023 Honours study in collaboration with CODES (University of Tasmania) determined that the hydrothermal system at Peak Hill is beginning to transition to high temperature phyllic alteration in the previously deepest drill holes of approximately 400m deep². Phyllic alteration typically sits above the potassic alteration that is usually associated with porphyry copper-gold deposits, suggesting Peak Hill occupies the roots of a deeply eroded epithermal system and a porphyry source could be present at a potentially economic depth (see Figure 1).

Figure 2. Basement geology from Peak Hill Gold Mine to Tomingley Gold Operations. 

Drilling Results

Deep diamond drill hole PHD084 was completed to 1,651 m and terminated approximately 1 km vertically below the base of the Proprietary open cut and 800 m below the existing underground Inferred Resource. The hole was designed to test below up-flow zones (interpreted hydrothermal conduits from a connected porphyry system) in and around the Great Eastern and Parkers pits. These up-flow zones are highlighted by a domain of elevated high-temperature pathfinder elements, including fluorine, identified in the honours research project and follow-up rock chip sampling. This domain is also above an earlier drillhole (PHD083) that was identified to contain a transitional muscovite-pyrophyllite assemblage at its end.

The drilling achieved its primary objective by intersecting interpreted transitional phyllic alteration beneath the up-flow zones mapped between Great Eastern and Parkers pits. Unfortunately, the drilling was not deep enough to transect the phyllic alteration or lithocap to an underlying porphyry intrusion. Phyllic alteration often overlies and overprints a potassic core to a porphyry system but is generally not mineralised (as in PHD084). Other indicators that a magmatic source is proximal to the drill hole was evidenced by common anhydrite-quartz±chalcopyrite veins (Figure 3) and sericite-pyrite veinlets. These veins can be formed from magmatic fluids related to porphyry deposits. Another indicator was the occurrence of pebble dykes that commonly occur above magmatic intrusions (Figure 4).

Although not the primary target, the hole was extended to 1 km vertically below the main Proprietary open cut at Peak Hill. Surprisingly, the hole intersected the continuation of the advanced argillic (pyrophyllite-topaz-silica) alteration pipe that extends from Proprietary for over 1 km vertically (Figures 5 and 6). Significant low grade gold-copper was intercepted:

Figure 3. White and pink anhydrite ± chalcopyrite veins (magmatic derived fluids) that crosscut the earlier advanced argillic pyrophyllite-silica-pyrite alteration (PHD084 from 1421m).

Figure 4. Pebble dyke with clasts of quartz vein and silica with pyrite ± bornite that are sourced from a deeper level and milled by the hydrothermal brecciation (PHD084 at 1582.7m).

Figure 5 – Local geology and mineralisation of the Peak Hill Gold Mine with drill hole trace PHD084.

Figure 6 – Section of general alteration assemblages informed by short wave infrared spectral scanning.

The phyllic alteration (identified through the presence of high crystallinity white mica) intersected beneath the Great Eastern-Parkers pits has associated chlorite (propylitic) alteration. The advanced argillic alteration intersected beneath the Proprietary pit suggests a different depth of emplacement and indicates the Peak Hill system may be associated with a cluster of porphyry intrusions that have been telescoped relative to each other. A new, second domain of remnant advanced argillic alteration was also identified to the east, around 300 m downhole. The entire hole has been overprinted with retrograde argillic alteration

Whilst PHD084 only intersected broad low grade gold mineralisation associated with silica-pyrite and advanced argillic alteration, potential remains for the high-grade core to extend at depth to the north or south of this hole. The extension of advanced argillic alteration to at least 1 km below the Proprietary open cut highlights that the potential for additional sulphide mineralisation below Proprietary open cut has not yet been fully evaluated.

Future Work

A surface exploration diamond core drill rig is currently working at the El Paso prospect before mobilising to the Tomingley mine site for a small program. The rig is then planned to mobilise to Peak Hill in November to complete six drill holes totalling 6,600m. Final assay results will be expected in 2027.

The drill rig is then planned to complete geotechnical drilling to provide information for future mining studies evaluating the potential viability of mining the existing underground Mineral Resource.

A new study has been commissioned focussing on PHD084 to evaluate the proximity of possible ‘pencil’ porphyry intrusives to the various alteration zones intersected by the deep hole. Further drilling is to be planned on the results of the study to test the potential for Peak Hill to host a Cu-Au porphyry deposit at an economic depth.

Peak Hill Gold Project
Mineral Resources

The Company confirms that it is not aware of any new information or data that materially affects the information included in the announcement dated 11 September 2026, and that all material assumptions and technical parameters underpinning the Mineral Resource estimate in that announcement continue to apply and have not materially changed.

Tabulated Drilling Results

<sup>Notes:
1. True widths are approximately 70% of intercept width.
2. Reported intercepts (>0.1g/t Au and/or 0.05% Cu) are calculated using a broad lower cut of 0.1g/t Au or 0.05% Cu although grades lower than this may be present internally (internal dilution).</sup>

Competent Person

The information in this report is based on, and fairly represents, information compiled and verified by Mr David Meates. Mr Meates is a Member of the Australian Institute of Geoscientists (MAIG).

Mr Meates has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves” (JORC Code).

For the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (‘NI 43-101’), the scientific and technical information contained in this announcement has been prepared under the supervision of, and approved by, Mr David Meates, who is a “qualified person” as defined in NI 43-101. Mr Meates is employed by Alkane as Exploration Manager NSW and is not considered independent of Alkane within the meaning of NI 43-101.

Mr Meates consents to the inclusion in this report of the matters based on his information in the form and context in which they appear.

This document has been authorised for release to the market by Nic Earner, Managing Director & CEO.

ABOUT ALKANE ‐ alkres.com ‐ ASX:ALK | TSX: ALK | OTCQX: ALKRY
Alkane Resources (ASX:ALK; TSX:ALK; OTCQX:ALKRY) 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 very large gold-copper porphyry Boda-Kaiser Project in Central West New South Wales and has outlined an economic development pathway in a Scoping Study. 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.

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Comprehensive financial, operational, resource and reserve information for Alkane Resources is available through the Interactive Analyst Centre™ located in the Investors section of our website at alkres.com.

Cautionary Note Regarding Forward-Looking Information and Statements
This announcement contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation and may include future-oriented financial information or financial outlook information (collectively “Forward-Looking Information”). Actual results and outcomes may vary materially from the amounts set out in any Forward-Looking Information. As well, Forward-Looking Information may relate to: future outlook and anticipated events; expectations regarding exploration potential; production capabilities and future financial or operating performance, including AISC, investment returns, margins and share price performance; production and cost guidance and the timing thereof; issuing updated resources and reserves estimate and the timing thereof; the potential of the Company to meet industry targets, public profile and expectations; and future plans, projections, objectives, estimates and forecasts and the timing related thereto. Forward-Looking Information is generally identified by the use of words like “will”, “create”, “enhance”, “improve”, “potential”, “expect”, “upside”, “growth” and similar expressions and phrases or statements that certain actions, events or results “may”, “could”, or “should”, or the negative connotation of such terms, are intended to identify Forward-Looking Information. Although Alkane believes that the expectations reflected in the Forward-Looking Information are reasonable, undue reliance should not be placed on Forward-Looking Information since no assurance can be provided that such expectations will prove to be correct. Forward-Looking Information is based on information available at the time those statements are made and/or good faith belief of the officers and directors of Alkane as of that time with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by the Forward-Looking Information. Forward-Looking Information involves numerous risks and uncertainties. Such factors include, without limitation: risks relating to changes in the gold and antimony price. Forward-Looking Information is designed to help readers understand Alkane’s views as of that time with respect to future events and speak only as of the date they are made. Except as required by applicable law, Alkane assumes no obligation to update or to publicly announce the results of any change to any forward-looking statement contained or incorporated by reference herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the Forward-looking Information. If Alkane updates any one or more forward-looking statements, no inference should be drawn that the company will make additional updates with respect to those or other Forward-looking Information. All Forward-Looking Information contained in this announcement is expressly qualified in its entirety by this cautionary statement.

Disclaimer
Alkane has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Alkane, its directors, officers, employees, associates, advisers and agents, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it. This announcement is not an offer, invitation, solicitation, or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this announcement nor anything in it shall form the basis of any contract or commitment whatsoever.

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)

¹ ASX Announcement 11 September 2026 “Tomingley Resources & Reserves Statement FY26”
² M. P. Young – “Geology, Alteration, Mineralisation and Geochemistry of the Peak Hill deposit NSW – Genetic and Exploration Implications’. (Honours Thesis, CODES, University of Tasmania).

CONTACT:  NIC EARNER, MANAGING DIRECTOR & CEO, ALKANE RESOURCES LTD, TEL +61 8 9227 5677
INVESTORS & MEDIA:  NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL +61 418 642 556

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