CASSIUS MINING LIMITED — Capital/Financing Update 2007

Dec 9, 2007

10 DECEMBER 2007

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ASX ANNOUNCEMENT

GULF EXPANDS CRYSTALBROOK PROJECT

Crystalbrook Project, Far North Queensland (EPM 13841 and EPM 15707 - GLF 100%)

The company has expanded its tenement coverage at its wholly owned Crystalbrook gold-base metal project in Far North Queensland, located some 25km south west of Chillagoe and 150km west of Cairns.

Purchase of EPM 15707 has been finalised following the issue of 272,727 shares each to Ralph De Lacey and John Sainsbury.

The tenement covers the westward extension of the Silver Dollar Fault Zone in an area with an elevated (12 ppb) stream sediment gold anomaly and surface rock chip sampling to 27 g/t gold.

Further exploration utilizing 3D IP and detailed soil sampling is planned to follow up on mineralised intrusive bodies emplaced along the fault zone.

The Crystalbrook Project now comprises 100% of both EPM 13841 and EPM 15707.

Placement Completed

The company has raised $1,192,500 through a placement of 4.5 million shares at 26.5 cents per share with a free attaching 1 for 2 unlisted option to sophisticated investors and clients of Baker Young Stockbrokers and BBY Ltd.

The funds have been earmarked to advance the company’s expansion plans in Tanzania. Further information on these programs will be outlined to shareholders shortly.

Further Information

Scott Reid, Chairman t: 02 8247 5333 Greg Duncan, Exploration Director t: 0427 376 426

Attribution

The information in this report which relates to exploration results at the Crystalbrook Project has been approved for release by Mr Greg Duncan (B.Sc., MAusIMM), who is an exploration geologist and has sufficient experience in relation to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined by the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (The JORC Code 2004 Edition). Mr Duncan has consented to inclusion of this information in the form and context in which it appears.

About Gulf Resources

The Company holds highly prospective exploration projects in the North Queensland and Tanami gold provinces. These provinces host several world class gold deposits with recognised exploration potential for more discoveries. The Company also holds an advanced exploration resource delineation project in Northern New South Wales which contains a JORC inferred resource of 309,000 tonnes at 3.12 grams per tonne gold for 31,000 ounces.

The company’s key aim is focussed on low cost- high return exploration and corporate strategies to capture significant value for investors during this current resource cycle by offering investors a balanced exposure to brownfield resource expansion, advanced greenfield exploration and development potential through a gold project acquisition strategy.

Level 10 Gold Fields House 1 Alfred Street Sydney NSW 2000 ● PO Box R745 Royal Exchange NSW 1225 t +61 2 8247 5333 ● f +61 2 9247 7722 A C N 115 027 033

www.gulfresources.com.au

Crystalbrook Project Location Map

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ACN 115 027 033 Level 5, 123 Pitt Street Sydney NSW 2000 Tel: (02) 9222 1888 Fax: (02) 9222 9477

www.gulfresources.com.au

Appendix 3B

New Issue Announcement

Appendix 3B

NEW ISSUE ANNOUNCEMENT

APPLICATION FOR QUOTATION OF ADDITIONAL

SECURITIES AND AGREEMENT

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

Gulf Resources Limited

ABN

13 115 027 033

We (the entity) give ASX the following information.

Part 1 - All Issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the+securities (eg, if options, exercise price and expiry date; if partly paid+securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion) 4 Do the+securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment	(i) Ordinary Shares and unlisted options (ii) OrdinaryShares
	(i) 4,500,000 shares with a free one for two attaching option exercisable at 25 cents each expiring 31 December 2009 (ii) 545,454 shares
	The 2,250,000 options are exercisable at 25 cents each expiring 31 December 2009.
	Yes

• See chapter 19 for defined terms. Appendix 3B

Appendix 3B

New Issue Announcement

8 Number and+class of all+securities quoted on ASX (_including_the securities in clause 2 if applicable) 9 Number and+class of all+securities not quoted on ASX (_including_the securities in clause 2 if applicable) 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests) 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 7 Dates of entering+securities into uncertificated holdings or despatch of certificates	(i) $0.265 per share with a free 1 for 2 attaching option. (ii) $0.275	(i) $0.265 per share with a free 1 for 2 attaching option. (ii) $0.275
	(i) Mineral exploration and working capital (ii) Acquisition of tenement – EPM 15707
	(i) 10 December 2007 (ii) 10 December 2007
	Number	+Class
	40,904,720 16,577,372	Ordinary shares Options expiring 30 June 2011
	Number	+Class
	13,700,005	Ordinary shares fully paid classified by ASX as restricted securities and to be held in escrow for a period of 24 months from commencement of officialquotation.
	6,750,000	Options exercisable at 20 cents each on or before 30 June 2011 classified by ASX as restricted securities and to be held in escrow for a period of 24 months from commencement of official quotation.
	2,250,000	Options exercisable at 25 cents each on or before 31 December 2009.
	N/A

• See chapter 19 for defined terms. Appendix 3B

Appendix 3B

New Issue Announcement

Part 2 - Bonus Issue or Pro Rata Issue

11 Is security holder approval required? 12 Is the issue renounceable or non- renounceable? 13 Ratio in which the+securities will be offered 14 +Class of +securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions 18 Names of countries in which the entity has +security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of+security holders 25 If the issue is contingent on+security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled	-
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• See chapter 19 for defined terms. Appendix 3B

Appendix 3B

New Issue Announcement

27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do+security holders sell their entitlements_in full_through a broker? 31 How do+security holders sell_part_of their entitlements through a broker and accept for the balance? 32 How do+security holders dispose of their entitlements (except by sale through a broker)? 33 +Despatch date	-
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Part 3 - Quotation of Securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities ( tick one )

• (a) � Securities described in Part 1

• (b) All other securities

E.g. Restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a) - Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders

• 36 If the[+] securities are[+] equity securities, a distribution schedule of the additional[+] securities setting out the number of holders in the categories 1 - 1,000

1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

• 37 A copy of any trust deed for the additional[+] securities

• See chapter 19 for defined terms. Appendix 3B

Appendix 3B

New Issue Announcement

Entities that have ticked box 34(b)

38 Number of securities for which +quotation is sought 39 Class of+securities for which quotation is sought 40 Do the+securities rank equally in all respects from the date of allotment with an existing+class of quoted +securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment	Not applicable
	Not applicable
	Not applicable

• 41 Reason for request for quotation now

• Not applicable

• E.g. the case of restricted securities, end of restriction period

(If issued upon conversion of another security, clearly identify that other security)

• 42 Number and[+] class of all[+] securities quoted on ASX ( including the securities in clause 38)

Number	+Class
Not applicable

• See chapter 19 for defined terms. Appendix 3B

Appendix 3B

New Issue Announcement

QUOTATION AGREEMENT

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the +securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the[+] securities to be quoted, it has been provided at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the[+] securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: ............................................................ (Director/Company Secretary)

Date: 10 December 2007

Print name: Wayne Kernaghan

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• See chapter 19 for defined terms. Appendix 3B