Björkdal – Near Mine Exploration Update

Program Summary

• An additional 29 drill holes have been completed targeting the Eastern and Northern extensions of the Björkdal mine since Alkane's previous release (ASX announcement 15 October 2025 titled ‘Björkdal Resources and Reserves Statement FY25’)
• The new drilling, completed in rolling phases of extension and infill across both target areas, has significantly enhanced confidence in the understanding of vein geometry and grade-controlling structures.
• Grade continuity within both areas has been supported by the drilling with high-grade intercepts within the eastern extension extending the known mineralisation to a depth of 762 m below surface which is the deepest yet recorded in the field.
• Current and planned exploration drilling will continue to target along-strike and down-dip extensions of the known mineralisation, with the objective of further expanding mineral resources and supporting future mine-life growth.

Assay Highlights

• Eastern Extension
  • 86.1 g/t gold over 1.25 m (ETW 0.80 m) in MU25-030
  • 81.3 g/t gold over 4.40 m (ETW 2.20 m) in MU25-022
  • 78.3 g/t gold over 0.30 m (ETW 0.21 m) in MU26-005
  • 39.3 g/t gold over 0.50 m (ETW 0.41 m) in MU25-011
    
    
• Northen Extension
  
  • 31.5 g/t gold over 0.85 m (ETW 0.22 m) in MU26-002
  • 25.2 g/t gold over 0.60 m (ETW 0.42 m) in MU25-027
  • 17.1 g/t gold over 0.80 m (ETW 0.40 m) in MU25-016
  • 15.4 g/t gold over 4.00 m (ETW 1.37 m) in MU25-032
    

Alkane Managing Director & CEO, Nic Earner, said:

“We are encouraged by the results coming from our near mine extension programs at Björkdal. The positive results indicate that the mineral system is still strong and open at depth. These results, together with the new resource at Storheden, support our confidence in the potential to increase production in addition to the longevity of the operation.”

Björkdal Gold Mine

Alkane Resources Ltd 100%

The Björkdal Gold Mine is located on the eastern margin of the prolific Skellefte Belt in northern Sweden, approximately 28 km northwest of Skellefteå and 750 km north of Stockholm (Figure 1).

The deposit was discovered in 1983 by Terra Mining AB through a glacial till sampling program that identified anomalous gold values. Follow-up exploration led to the discovery of gold mineralisation in bedrock in 1985, with resource definition drilling commencing in 1986. Concurrent metallurgical test work and feasibility studies delivered positive results, paving the way for the commencement of mining operations in July 1988.

Since production began, Björkdal has undergone several changes in ownership while continuing to operate as a significant gold-producing asset. Most recently, the operation became wholly owned by Alkane Resources following its merger with Mandalay Resources in August 2025.

Production is supported by the 1.4 Mtpa processing plant, which has been progressively upgraded since commissioning. Current ore feed is sourced from underground mining operations and surface low-grade stockpiles.

Since the start of production in 1988, the Björkdal Mine has produced approximately 1.69 million ounces of gold. Continued exploration success has delivered growth in both Mineral Resources and Ore Reserves, with the current Ore Reserve reported, as of 30 June 2025, of 13.05 Mt grading 1.29g/t gold (ASX announcement 15 October 2025 titled ‘Björkdal Resources and Reserves Statement FY25’)

Figure 1: Regional map showing the location of Björkdalsgruvan relative to the broader Skellefte Belt, highlighting known base and precious metal occurrences (SWEREF 99TM).

Figure 2: Regional geological map showing the locations of the three main deposits in the Björkdal area and contiguous exploration permits (SWEREF 99TM).

Deposit Geology

The Björkdal Gold Mine is located in the eastern part of the Paleoproterozoic Skellefte District in northern Sweden. The Skellefte District constitutes a 1.89–1.88 Ga volcanic arc and hosts numerous volcanic massive sulphide (VMS) and lode gold deposits (Figure 1).

Mineralisation at Björkdal occurs primarily as free milling gold and is hosted within centimetre- to meter-wide, subvertical quartz veins, predominantly beneath a marble horizon within a complex sequence of volcano-sedimentary rocks belonging to the Upper and Lower Skellefte Groups (Figure 2). The mineralised system plunges eastward and northward (mine grid), forming a 30–60 metre thick zone of sheeted quartz veins containing gold mineralisation (Figure 4).

The principal vein set strikes east-west (070–090° in mine grid coordinates) and represents the primary target for underground mining both above and below the marble horizon. Additional subordinate vein sets occur at varying orientations and may also host economically significant gold mineralisation.

Vein geometry and distribution are strongly influenced by shearing, thrusting and folding. Variations in vein orientation (Figure 3), mineralogy, wall-rock alteration and fluid inclusion characteristics indicate multiple phases of veining and mineralising fluid activity.

Figure 3: Typical auriferous quartz veining observed at Björkdal. (A) Main Zone. (B) Lake Zone. (C) Lake Zone Above.

Figure 4: (A) Oblique view looking down and to the NE (Mine Grid) displaying known auriferous quartz veining at Björkdal. (B) Cross section ± 30 metres along the Björkdal deposit looking to the NE (Mine Grid).

Drilling Results

Since the previous release, 29 growth and infill drill holes have been completed, totalling 15,568m of diamond drilling. Drilling was focused on two target areas within the underground mine, the Eastern and Northern Extension (Figure 5). Both target areas are situated stratigraphically below the marble unit that extends throughout the mine area.

Figure 5: Mine Scale overview showing the location of the most recent drilling in relation to current underground development (Mine Grid).

Eastern Extension

Thirteen holes have been drilled along the eastern flank of the mine since June 2025, totalling 6,304 m with an average hole depth of 485 m. The program was completed in two phases of infill and extensional drilling, targeting strike and depth extensions of veining within the Main Zone of the underground mine. A total of 169 ore-grade intercepts have been identified within the target zone, including the best result from drillhole MU25-030, which returned 86.1 g/t gold over 1.25 m (ETW 0.80 m). The program also delivered the deepest intercept recorded at the mine to date, with drillhole MU25-021 returning 3.5 g/t gold over 3.20 m (ETW 2.45 m) at -976 RL (-762 m elevation) (Figure 6).

Figure 6: Oblique view to the WSW highlighting results from the most recent drilling campaign along the eastern flank of the underground mine.

Figure 7: Core tray photograph from MU25-030, where the highest-grade interval of the drill program was intersected.

Northern Extension

Sixteen holes were drilled within the Northern Extension of the underground mine since June 2025, totalling 9,264 m, with an average hole depth of 580 m. Building on the success of previous drilling campaigns, the program was designed to improve the understanding of vein morphology and structural controls on mineralisation, while testing the northern and western extensions of known veining.

The program successfully confirmed previously identified vein swarms and further enhanced confidence in the geological interpretation of the area. Assessment of the western extent of the target zone was constrained by the availability of underground drill platforms; however, the information collected has enabled the development of a more robust structural model, which will support future targeting and resource growth within the Northern Extension. A total of 68 ore-grade intercepts have been identified within the target zone, including the best result from drillhole MU26-002, which returned 31.5 g/t gold over 0.85 m (ETW 0.22 m). Drilling has confirmed mineralised veins up to approximately 600 m from existing underground development (Figure 8).

Figure 8: Oblique view to the SW highlighting results from the most recent drilling campaign in the Northern extension of the underground mine.

Figure 9: Drill core photos from MU25-027 showing an intercept grading 25.2 g/t gold over 0.60 m (ETW 0.42 m) (A) and a close-up of mineralised quartz vein (B).

Future Plans

Mineralisation remains open at depth and along strike in both the Northern Extension and Eastern Extension target areas. In FY27, underground drilling will continue in staged programs of infill and extension drilling aimed at improving geological confidence and testing continuity of mineralisation.

At the Northern Extension, drilling will continue to test both depth and along-strike continuity, with western extension drilling to be supported by the establishment of a dedicated underground drill platform. This will enable improved drill orientations and reduce scheduling conflicts between drilling and mining activities.

At the Eastern Extension, mineralisation remains open at depth and along strike to the east. Future drilling will focus on step-out extensional testing to assess the continuity of known vein swarms and refine the structural controls on mineralisation in this area.

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

ABOUT ALKANE ‐ www.alkres.com ‐ ASX:ALK | TSX: ALK | OTCQX: ALKRY

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 750 km 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.

Competent / Qualified Persons Statement

Certain information in this announcement relating to Exploration Results has been previously released to the ASX. Alkane confirms that it is not aware of any new information or data that materially affects the information included in those market announcements and that all material assumptions and technical parameters underpinning the estimates and Exploration Results in those announcements continue to apply and have not materially changed.

The information in this report that relates to the Costerfield Exploration Results is based on, and fairly represents, information compiled and verified by Mr Chris Davis. Mr Davis is a Chartered Professional (Geology) of the Australasian Institute of Mining and Metallurgy (MAusIMM CP(Geo)) and a Member of the Australian Institute of Geoscientists (MAIG).

Mr Davis 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 relating to the Costerfield Exploration Results has been prepared under the supervision of, and approved by, Mr Chris Davis, who is a “qualified person” as defined in NI 43-101. Mr Davis is employed by Alkane as Chief Geologist and, as an employee of Alkane, is not considered independent of Alkane within the meaning of NI 43-101.

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

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 Alkane 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.

APPENDIX 1 – Tabulated Drilling Results

Significant intercepts from Near Mine Exploration drilling program at Björkdal

1. Where true widths are greater than 1m, grades are not diluted and are presented as the grade over the intercept true width.
2. Intercepts that are below 0.5 g/t Au when diluted to 1 m are not reported in this table.

Drill hole collar details from Near Mine Exploration drilling program at Björkdal:

1. Coordinate System: SWEREF 99TM

APPENDIX 2

JORC Code, 2012 Edition – Table 1 Report – Björkdal Gold Mine

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

• Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

• Method of recording and assessing core and chip sample recoveries and results assessed.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

• The total length and percentage of the relevant intersections logged.

• If core, whether cut or sawn and whether quarter, half or all core taken.

• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

• The verification of significant intersections by either independent or alternative company personnel.

• The use of twinned holes.

• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

• Discuss any adjustment to assay data.

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• Specification of the grid system used.

• Quality and adequacy of topographic control.

• Data spacing for reporting of Exploration Results.

• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• Whether sample compositing has been applied.

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• The measures taken to ensure sample security.

• The results of any audits or reviews of sampling techniques and data.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• Acknowledgment and appraisal of exploration by other parties.

• Deposit type, geological setting and style of mineralisation.

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
  • easting and northing of the drill hole collar
  • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar
  • dip and azimuth of the hole
  • down hole length and interception depth
  • hole length.

• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• These relationships are particularly important in the reporting of Exploration Results.
  • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
  • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).

• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).
• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

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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