ASX ANNOUNCEMENT 24 July 2013 Alcyone Texas Silver Operations Update

As advised on 11 July 2013, operations at Alcyone's (ASX:AYN) ("Alcyone" or the "Company") Texas Silver Mine ("Texas") in south-east Queensland have been suspended pending closure of the funding required to secure payment for critical consumables. The Company advises that operations remain suspended at this time.

The closure of the $10M silver streaming agreement announced on 17 May 2013 remains on track for completion in the next several weeks, and the Company is also working to finalise the closure of the non-renounceable entitlement issue on August 2nd, 2013. Operations at the Texas Silver Mine will recommence as soon as funding becomes available.

As previously advised, due to the nature of Heap Leach recoveries, the Company has continued to leach silver into the pregnant pond while this work has been undertaken, and will continue to do so throughout the extended shutdown period. The recovery of these ounces from the ponds will occur as soon operations re-commence.

The impact of these events on the Company's production guidance remains uncertain due to the timing of the necessary funding and resumption of processing operations, however the Company will advise the market of any material effects as this information is available.

ENDS For further information: For media enquiries: Mr Trevor Harris Rachel Cooper Alcyone Resources FTI Consulting Phone: +61 8 9476 3000 Phone: +61 8 9485 8888

About Alcyone

Alcyone Resources (ASX:AYN) is a pure play low cost silver producer based in south-east Queensland. Alcyone's Texas Silver Project (100% owned) which includes the Twin Hills Mine and Mount Gunyan commenced silver production in July 2011, with targeted annual silver production levels in excess of 1Moz.

Forward-Looking Statement

Certain statements made during or in connection with this communication, including, without limitation, those concerning exploration targets, contain or comprise certain forward-looking statements regarding Alcyone's exploration operations, economic performance and financial condition. Although Alcyone believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metals prices and exchange rates and business and operational risk management. Alcyone undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events.

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