Company Announcements Office 12 January 2012

Australian Securities Exchange

20 Bridge Street

SYDNEY NSW 2000

Dear Sir/Madam

ANNOUNCEMENT OF A FULLY UNDERWRITTEN NON-RENOUNCEABLE ENTITLEMENT ISSUE OF SHARES TO RAISE $4.2 MILLION

Alchemy Resources Limited (the Company) announces a pro-rata non-renounceable offer to eligible shareholders of 1 ordinary fully paid share for every 3 shares held on 23 January 2012 (the Issue) at a price of per Share, to raise $4,222,721 (before costs). The purpose of the issue is to fund a significant exploration program proposed for its tenement holding in the Bryah Basin.

Jindalee Resources Limited and Grandor Pty Ltd (an entity controlled by Mr Mark Scott, Jindalee's chairman) have agreed to take up their entitlements and fully underwrite the remaining shares offered under the Issue.

The proposed timetable for the Issue is set out below.

Announcement of Entitlement Issue and Lodgement of Prospectus

12 January 2012

Despatch of Preliminary Notice to Shareholders 16 January 2012

Ex Date - shares trade ex Entitlement 17 January 2012

Record date to determine Entitlement 23 January 2012

Prospectus and Entitlement and Acceptance Form sent to Shareholders 30 January 2012

Closing date for receipt of acceptances 13 February 2012

Allotment and issue of New Shares and despatch of shareholding statements 21 February 2012

These dates are indicative only and may vary. The Company reserves the right to vary the opening and closing dates of the Issue without prior notice. This may impact subsequent dates in the timetable. An Appendix 3B announcement and application for quotation is attached.

The Issue is made under a prospectus that has been lodged with ASIC and which is available on both the ASX website (www.asx.com.au) and on the Company's website (www.alchemyresources.com.au). Eligible shareholders should consider the Prospectus in deciding whether to acquire shares under the Issue, and complete the personalised Entitlement and Acceptance Application Form that will accompany the Prospectus.

Yours faithfully

Bernard Crawford Company Secretary

Level 2, 72 Kings Park Road GPO Box 2815 T: +61 8 9481 4400 E: admin@alchemyresources.com.au
West Perth WA 6005 Perth WA 6001 F: +61 8 9481 4404 W: www.alchemyresources.com.au

Appendix 3B New issue announcement Appendix 3B

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

ALCHEMY RESOURCES LIMITED

ABN

17 124 444 122

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to be issued

ORDINARY SHARES FULLY PAID

2 Number of +securities issued or to be issued (if known) or maximum number which may be issued

32,482,470

3 Principal terms of the +securities (eg, if options, exercise price and expiry date; if partly paid

+securities, the amount outstanding and due dates for payment; if

+convertible securities, the conversion price and dates for

conversion)

Issue price is 13 cents

+ See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 1

Appendix 3B New issue announcement

4 Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted

+securities?

If the additional securities do not rank equally, please state: