WA Government Awards EIS Grant for Pinderi Hills

Western Australian Government Awards Exploration Incentive Scheme Grant for Pinderi Hills

Alien Metals Ltd (AIM: UFO), a minerals exploration and development company, is pleased to report that it has been successfully awarded a grant of up to A$120,000 by the Western Australian State Government to co-fund three proposed deep diamond core holes at the Pinderi Hills Project, 50km south of Karratha, Western Australia.

Highlights:

• The grant, up to A$120,000, is to co-fund exploration diamond core drilling at Pinderi Hills
• The applications are assessed through a competitive process that rewards innovative and scientifically meritorious drilling programmes
• The drilling proposed is targeting the basal units of the Munni Munni ultramafic intrusion in areas with no previous exploration drilling under alluvial cover
• The basal units are considered highly prospective for Cu, Ni, PGMs and Ag

Robert Mosig, Technical Director, commented:

"We have always considered the Munni Munni intrusion to be highly prospective for precious and base metals, and so it is pleasing to see that the Company's application has been judged against its peers and was successful.

"The benefits of drilling these holes will be of long-term use to the Company as they will add immense geological knowledge to the lower, highly prospective, ultramafic units. This proposed drilling, in under-explored areas which are also under alluvial cover, will enable the Company to accelerate its geological understanding and exploration models in its vision of finding new, significant, precious metal mineralisation at Pinderi Hills."

About Pinderi Hills1

The Pinderi Hills Project is an area of exploration and mining licenses covering ~180km2 of highly prospective terrain in the West Pilbara region of Western Australia. The ground is highly prospective for Ag and Cu-Ni-PGM sulphide deposits in mafic/ultramafic complexes. The West Pilbara region has seen several significant discoveries in recent times with the giant lithium discovery at Andover, partly owned by the Chilean company, Sociedad Química y Minera de Chile SA, (NYSE: SQM) ("SQM"), and the De Grey Mining Ltd +10Moz Hemi Gold Project being the standout discoveries.

The project area also contains the high-grade Elizabeth Hill Silver Mine which was Australia's highest-grade silver mine at the time it was mined between 1999 to 2000. The Company also has a lithium joint venture with ASX-listed lithium specialists, Errawarra Resources Limited, which has identified a 6km2 LiO2 footprint within the project area.

The EIS programme

The Co-funded Exploration Drilling Programme is part of the Western Australian State Government-funded Exploration Incentive Scheme ("EIS"). It is a competitive programme that awards grants to co-fund innovative exploration drilling projects within Western Australia. The Company was successful in its application and is eligible for up to A$120,000 to cover up to half of the drilling costs of three deep diamond core drill holes.

For further information on the EIS, please refer to www.dmp.wa.gov.au/Petroleum/Exploration-Incentive-Scheme-2251.aspx

Drilling at Pinderi Hills

The proposed diamond core drilling is up to three holes targeting the more prospective basal units of the Munni Munni intrusion in areas under transported cover with no soil geochemistry nor electromagnetic testing over these lower portions (Figure 1). The eastern side of the Munni Munni intrusion basal units are anomalous for Ag, PGM, Cu and Ni, along the line of Judy's Reef. These planned holes will test the geology and structural interpretation and the modelled extension of Judy's reef extension under areas of transported cover where there has been no previous exploration.

For further information, please visit the Company's website at www.alienmetals.uk or contact:

Strand Hanson (Financial and Nominated Adviser)

James Harris / James Dance / Robert Collins

Zeus Capital Limited (Joint Broker)

Harry Ansell / Katy Mitchell

Tel +44 (0) 203 829 5000

CMC Markets (Joint Broker)

Douglas Crippen

Yellow Jersey (Financial PR)

Charles Goodwin / Shivantha Thambirajah / Zara McKinlay