Alligator Energy : 31st January 2017 – Quarterly Activities Report

QUARTERLY ACTIVITIES REPORT FOR QUARTER ENDED 31 December 2016 HIGHLIGHTS

EXPLORATION

• Increased prospectivity and confidence in TCC4 drill target.

• Uranium pathfinder anomalies at TCC1, TCC2 and TCC14 upgraded.

• Interpretation of basement geology identifies two new highly prospective target areas at BT5 and BT7.

• New tenement application (ELA31480 Nabarlek North) lodged within world class Alligator Rivers Uranium Province.

• Uranium spot price increase of ~30% through December 2016 and January 2017, as Kazakstan announces production cuts.

  CORPORATE

• Strong support received from shareholders for the non-renounceable rights issue. Gross proceeds of $899,840 inclusive of underwriting commitments were raised.

• ATO accepts Alligator application for the 2017 Exploration Development Incentive (EDI) scheme (a distribution to shareholders of approximately $660,000 expected to occur before 30 June 2017).

• New Opportunities Team established with mandate to seek business opportunities including in other commodities.

• R&D Offset claim for the 2016 tax year lodged with the ATO in December 2016 (net receipt of approximately $230k is expected).

• Alligator's Annual General Meeting occurred on 18 November 2016 with all resolutions passed.

Alligator Energy

ABN 79140575604

Suite 3

36 Agnes Street Fortitude Valley, QLD 4006

Ph: [phone]

Fax: [phone] ASX Code: AGE

Number of Shares: 452.7M Ordinary Shares 45M Listed Options 8.4M Unlisted Options

Board of Directors: Mr John Main (Exec Chairman)

Mr Paul Dickson (Non Exec. Director)

Mr Peter McIntyre (Non Exec. Director)

Mr Andrew Vigar (Non Exec. Director)

Mr Greg Hall (Non Exec. Director)

EXPLORATION Overview

In 2016 Alligator completed its sixth year of active exploration within the Alligator Rivers Uranium Province.

Target TCC4 remains Alligator's outstanding target, and is drill ready. BT12 is also a top quality and very large geochemical anomaly requiring a geophysical survey to refine drill targets. Through continued commitment to its research and development (R&D) program Alligator is further refining the ability to pinpoint and discriminate potential uranium deposits. Improvements in both uranium decay isotope (pathfinder) geochemistry and geophysical survey understanding has resulted in re-ranking targets TCC1, TCC2, TCC14, to high potential justifying further sandstone sampling and analyses.

An interpretation of basement stratigraphy and structure beneath the overlying Kombolgie Sandstone was completed during the Quarter. This allows clearer identification of basement settings deemed suitable for unconformity uranium deposits and a greater focus on these prospects as a result. Two areas, BT5 and BT7 in the Beatrice tenement, have been singled out for reconnaissance sandstone sampling and uranium pathfinder element analyses. Conversely the prospectivity of EL27250 (Beatrice East - 100% AGE) was downgraded and was relinquished during Quarter.

Additionally following regional interpretations, an exploration application (ELA 31480 - Nabarlek North) was lodged over an area of highlighted interest, just over 5km north of the historic Nabarlek uranium mine site. Alligator's uranium pathfinder and geophysical R&D techniques would be highly suited to exploration across this tenure if granted.

Beatrice and TCC Projects

Alligator is actively exploring both the Tin Camp Creek (TCC) and Beatrice (BT) tenements. Figure 1 below shows current targets and prospective areas.

Figure 1: AGE targets across BT and TCC tenure.

TCC4: An outstanding untested drill ready target

TCC4 located within the Tin Camp Creek tenement remains the standout target. Coincident high levels of uranium pathfinder elements, SAM conductors, preferred Cahill Formation basement and large fault structures make this a "high-conviction" unconformity uranium deposit target. See Figure 2 below. Alligator has excellent geochemical and geophysical data for the prospect, which is at a drill ready state.

Figure 2: TCC4 Stylized cross section showing drill targets

BT12: The largest uranium pathfinder anomaly in the Province requiring geophysical exploration

BT12 is located within the Beatrice tenement. Mapping and geophysics show preferred Cahill Formation forming stratigraphy south of the Beatrice Fault and extending north under overlying Kombolgie Sandstone. This places preferred basement stratigraphy directly below very large and very strong uranium pathfinder anomalies at BT12. (Figure 3).

Figure 3: Pb 207/206 ratio results at BT12

New Target Areas at BT5, BT6 and BT7

The basement geological interpretation highlighted BT7 and the BT5/6 areas to be significantly prospective justifying sampling and analyzing the overlying Kombolgie Sandstone for uranium pathfinder elements in 2017. BT7 is located just 12.5km south-east of the Ranger uranium mine. Both have the sought after preferred rock types and large regional structures.

Improvement in uranium isotope analysis techniques demands further sampling at TCC1, TCC2 and TCC14

Through Alligator's continued R&D program it has been able to improve analysis techniques for uranium pathfinder elements and interpretation of these results. Following a review of all existing geochemistry from previous surface sandstone sampling programs, several targets have now been re-ranked. Previous results from sampling at TCC1, TCC2 and TCC14 have been deemed very encouraging but inconclusive. Follow-up sampling is now planned in 2017 to fully define and refine the pathfinder features at these targets.

ELA31480 - Nabarlek North Application

During December 2016, Alligator lodged an exploration licence application (ELA 31480) for the Nabarlek North project area.

Figure 4: Location of new application EL31480 highlighted magenta.

The tenement lies proximal to Alligator's main TCC tenement and is adjoined by several other Alligator exploration licence applications. The area is located just over 5km north of the historic Nabarlek Uranium mine. The application area is also adjacent to the U40 prospect area that has reported drilling intersections of 6.8m at 6.71% U3O8, 8.3m at 2.12% Cu and 3.1m at 6.89g/t Au in the Quarry Fault. This Fault runs through the application area. Alligator's basement geological interpretation shows the application area to be highly prospective for both structurally-controlled and unconformity uranium deposits.

This exploration licence application is further demonstration of Alligator's commitment and long term strategy to explore for large uranium deposits within the Alligator Rivers Province. There is however no guarantee of having ELA31480 granted or gaining approval for exploration.