Alkane Doubles the Tested Depth Extent of the Storheden Deposit at Björkdal

Program Summary

• The Storheden deposit is situated approximately 600m to the north of the active Björkdal mine that has produced 1.66M oz of gold since 1988 and has 1.40M oz in Measured and Indicated Mineral Resources as at 30 June 2025 (20.35 Mt grading 2.14 g/t gold).¹
• Drilling over two recent campaigns has focussed on the depth testing and potential resource extension below the initial Inferred Mineral Resource for the Storheden Deposit estimated in 2025 of approximately 99koz (1,769 Kt at 1.74 g/t gold).¹
• Gold baring quartz veins have been intercepted to a depth of 464m bearing which more than doubles the previous tested depth of 200m. Additionally drilling to the east and west has extended the strike length of known mineralisation to over 2.7km. The deposit remains open with no indications of diminishing grade at depth.
• The Björkdal style veining of Storheden is interpreted to be hosted in three favourable lithological units Akin to those that host Björkdal and it is interpreted that the two systems converge at depth.
  
  

Assay Highlights

• From the Depth Testing campaign:
  • 16.2 g/t gold over 0.70 m (ETW 0.60 m) in SH24-003 at 475 m;
  • 14.0 g/t gold over 1.2 m (ETW 0.85 m) in SH24-004 at 317 m;
  • 34.3 g/t gold over 1.6 m (ETW 0.68 m) in SH24-006 at 470 m.

• From the Resource Extension campaign:
  • 142.0 g/t gold over 0.60 m (ETW 0.25 m);
  • 111.0 g/t gold over 0.50 m (ETW 0.25 m); and
  • 41.4 g/t gold over 0.60 m (ETW 0.34 m) in SH25-006;
  • 57.7 g/t gold over 0.50 m (ETW 0.41 m) in SH25-009; and
  • 45.2 g/t gold over 0.50 m (ETW 0.38 m) in SH25-014.
    

Note: ETW refers to the Estimated True Width of the intercept. A full list of the Significant Storheden Intercepts can be found in Appendix 1.

Alkane Managing Director & CEO, Nic Earner, said: “These highly encouraging results from the Storheden Deposit further support our understanding that the wider Björkdal system is vast and underexplored. Our focus for Björkdal is bringing higher grade ore through the processing plant by replacing low grade stockpile feed with underground ore. Storheden presents an opportunity to create a distinct production area alongside those already in production and achieve this goal.”

________________________
¹ Refer to ALK Announcement dated 15 October 2025 titled ‘Björkdal Resources and Reserves Statement FY25.

Björkdal Mine

Alkane Resources Ltd 100%

The Björkdal deposit was originally discovered in 1983 by Terra Mining AB during a till sampling program which highlighted anomalous gold values in the glacial till profile. The discovery of in situ gold anomalism followed in 1985 and a definition drilling program began in early 1986. After successful infill drilling and feasibility studies were completed mining operations commenced in 1988 with open cut mining leading to the commencement of underground mining in 2012. Open cut mining was put on hold in 2019 with the majority of processing feed coming from the underground operations and supplemented by a low-grade stockpile that was built pre 2019 from the open cut mining.

The mineralisation at Björkdal is hosted within quartz filled tensional fractures predominantly underneath a marble horizon within a complex of volcano-sedimentary units.

Since mining has commenced approximately 1.66 million ounces of gold has produced from the site at an average feed grade of 1.49 g/t. Exploration has continued to grow the Mineral Resources and reserves with the current Measured and Indicated Mineral Resources as at 30 June 2025 of 20.35 Mt grading 2.14 g/t gold.¹

Alkane currently holds 211 square kilometres in exploration tenements and mining concessions centred on the Björkdal dome with a number of prospects actively explored and progressed over the past five years however the dominant focus of regional exploration has been on the Storheden deposit which is approximately 600m to the NNE of the current underground infrastructure.

Figure 1. Regional geological map showing the locations of exploration focus and the contiguous tenements around the Björkdal dome.

Storheden Gold Deposit

Gold mineralisation at Storheden was initially recognised by Terra Mining during the commencement of Björkdal operations in 1987. Base-of-till and bedrock samples obtained from this campaign outlined a NW-SE striking cluster of gold anomalies. These were subsequently targeted with successive campaigns of percussion (RC/DC) and diamond drilling by Terra Mining (1988-1997), GoldOre (2007-2011) and Mandalay Resources (2015-2017), together demonstrating mineralization in Björkdal-style quartz tension veins and shear-hosted veins.

Follow-up drilling in 2023 by Mandalay Resources Corporation tested the depth extension of auriferous veins at Storheden, while increasing the coverage of oriented drill core to better constrain the geometry of the mineralised system. This drilling doubled the known system depth to ~200m and confirmed system continuity over 1.6km. New confidence in veining continuity also led to the first Mineral Resource being reported for the project in 2025. A summary of the 2023 exploration results and Storheden resource are detailed in the Björkdal resource and reserve estimate released in October 2025¹

Since the reinvigoration of Storheden exploration in 2023, two drilling campaigns have been completed. In 2024 a depth testing campaign of 6,598m over 14 holes tested the deposit successfully at a depth of 464m with encouraging grades with 34.3 g/t gold over 1.6 m (ETW 0.68 m) in SH24-006 and 16.2 g/t gold over 0.70 m (ETW 0.60 m) in SH24-003 at vertical depths below surface of 443m of 436m respectively. As there was a significant distance between the depth testing campaign and the 2023 drilling the results of the 2024 deep drilling campaign were not included in the Inferred Mineral Resource estimated at the end of 2024.

Figure 2. Björkdal-Storheden overview map highlighting the 2024 and 2025 Storheden drilling campaigns.

Extension across strike was also a focus of the 2024 campaign and although the grades were relatively low, gold bearing veins were also intercepted in the furthest strike testing showing continuous mineralisation across 2.7km (Fig 3).

Figure 3. Long Section along confirmed Storheden mineralisation in relation to recent drilling results. Selected significant intercepts are annotated.

In 2025 the drilling campaign at Storheden had a narrower focus with the goals of further defining veining and ultimately building resources at depth where the potential exists to access the deposit from current underground workings. 7,938m meters over 14 holes was drilled into the interpreted core of the system. The closer spaced and oriented core also allowed for a more in-depth structural analysis of the veining.

Veining typical of Björkdal was seen in all holes with gold and tsumoite regularly identified within quartz (figure 4). Assay highlights of the program include 142.0 g/t gold over 0.60 m (ETW 0.25 m) and 111.0 g/t gold over 0.50 m (ETW 0.25 m) in SH25-006 as well as; 57.7 g/t gold over 0.50 m (ETW 0.41 m) in SH25-009 (figure 3).

Figure 4. Drill core photos from SH25-006 showing an intercept grading 142 g/t gold over 0.60 m (ETW 0.25 m) (A) and a close-up of mineralised quartz vein (B).

Geological Interpretation

The Storheden mineralisation stratigraphically overlies the Björkdal deposit and is hosted in mafic to intermediate volcanic successions of the Upper Skellefte group, close to the contact with sedimentary sequences in the Vargfors Group (fig. 1 and 5). Visible gold, Scheelite and Tsumoite have been intercepted in high-grade tension veins at Storheden, suggesting that mineralisation is derived from the same fluid source as the Björkdal deposit. However, rare disseminated Arsenopyrite may reflect a fluid contribution from nearby sedimentary sequences in the Vargfors Group

The Björkdal-Storheden system is hosted within a fold and thrust architecture on the northwestern margin of the Björkdal dome (fig. 1), where intersections of multiple generations of thrusts and strike-slip shears created favourable pathways for late mineralized fluids. Fluid flow was primarily localised along stratigraphic contacts characterised by significant rheological contrasts, which experienced repeated deformation during the transition from ductile to ductile-brittle conditions.

A key structure is the north-south striking, moderately west-dipping Cross fault (fig. 3), which extends across both the Björkdal and Storheden deposits and is parallel to the axial plane of the large fold hosting Björkdal and Storheden (fig. 1). High-grade mineralisation occurs as it intersects major stratigraphic contacts and interacts with other faults. These intersections provide a significant exploration target at depth in Storheden, as well as regionally across the Björkdal dome.

Due to the similar style of mineralisation and veining at Björkdal and Storheden, the two systems are interpreted to be connected at depth and share a common fluid source. Thickening of the stratigraphic sequence has led to a separation of the marble and Skellefte-Vargfors contact of approximately 750-1000 m at surface. However, the two contacts are projected to converge at depth and reach a level of separation comparable to other parts of the Björkdal dome structure (<200 m, see figure 1).

Figure 5. Cross section looking WNW showing the geographic relationship between the Björkdal deposit and mine to the left and the emerging Storheden system to the east.

Further Work

Interpretation from the two drilling campaigns is ongoing and the resource model is yet to be updated however the encouraging results so far and proximity to the current underground infrastructure highlight and already justify further drilling.

Alkane intends to recommence drilling in January 2026 and continue to grow the Resources and mineralisation framework at Storheden with the aim of creating a basis for a decision to mine. Upcoming programs will be focused on target zones defined from current drilling (A-C, see figures 2-3, 5), in which the lithostructural framework appear to have provided suitable conditions for quartz veining and mineralisation.

As well as the Storheden drilling Alkane will also continue to progress the Eastern Extension area and the North extension of the contiguous Björkdal deposit. The system does not yet show signs of diminishing gold endowment in these direction and exploration is ongoing as drilling platforms become available

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

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

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 Persons Statement 

As an Australian Company with securities listed on the Australian Securities Exchange (ASX), Alkane is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act 2001 and the ASX. Investors should note that it is a requirement of the ASX Listing Rules that the reporting of ore reserves and mineral resources in Australia is in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and that Alkane's ore reserve and mineral resource estimates and reporting comply with the JORC Code.

Alkane is also subject to certain Canadian disclosure requirements and standards as a result of its secondary listing on the Toronto Stock Exchange (TSX), including the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101). Investors should note that it is a requirement of Canadian securities law that the reporting of mineral reserves and mineral resources in Canada and the disclosure of scientific and technical information concerning a mineral project on a property material to Alkane comply with NI 43-101.

Unless otherwise advised above, or in the relevant ASX announcements referenced, the information in this announcement that relates to exploration results, mineral resources and ore reserves is based on, and fairly represents, information compiled by Mr Chris Davis, who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Alkane Resources Limited. Mr Davis has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and as a Qualified Person under NI 43-101. Mr Davis consents to the inclusion in this announcement of the matters based on his information in the form and context in which they appear. The information in this announcement that relates to previously reported exploration results, mineral resources and ore reserves is extracted from the Company’s ASX announcements noted in the text of the announcement and available to view on the Company’s website. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcements and that, in the case of estimates of mineral resources or ore reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Technical Reports released to the TSX or for TSX Market

The NI 43-101 compliant technical report titled ‘NI 43-101 Technical Report, Björkdal Gold Mine, Sweden’ and dated 28 March 2025, with an effective date of 31 December 2024 supports the information contained herein and is available on the ASX and under Alkane’s profile on SEDAR+ at www.sedarplus.ca.

Reference should be made to the full text of the foregoing technical report for the assumptions, qualifications and limitations relating to the Mineral Resource Estimates and Ore Reserves contained therein and herein. All material assumptions and technical parameters underpinning the estimates in the technical reports continue to apply and have not materially changed.

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.

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

APPENDIX 1

Drilling Results

Storheden Gold Deposit

Significant intercepts from the 2024 and 2025 drilling programs at Storheden:

Notes:

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 the 2023 drilling programs at Storheden:

Notes:

1. Coordinate System: SWEREF 99
   
   

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.

Figures accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/e4bc24ed-dbea-4118-a5f0-2ba26c54e5c7

https://www.globenewswire.com/NewsRoom/AttachmentNg/e2f97cf9-58d2-406d-bcba-46fb8713d11a

https://www.globenewswire.com/NewsRoom/AttachmentNg/c77c6f85-8b22-470b-987f-b38f47fc2972

https://www.globenewswire.com/NewsRoom/AttachmentNg/e6a3b110-eb87-43ea-96ea-16c18b36ed38

https://www.globenewswire.com/NewsRoom/AttachmentNg/5d049504-c5cf-427c-a1ec-8fe478287ec1

https://www.globenewswire.com/NewsRoom/AttachmentNg/a02e544b-5acc-4d54-b77d-252d314723ca