CASSIUS MINING LIMITED — Capital/Financing Update 2008

Jun 30, 2008

1 JULY 2008

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ASX ANNOUNCEMENT

Signs Heads of Agreement on Tanzanian Coal Projects

Highlights

• Signs Heads of Agreement (“HoA”) with Tan Resources Ltd (“Tan”) to evaluate the potential of a Public Private Partnership / joint venture between Tan and Tanzania’s National Development Corporation for the development of Liweta and Mbamba Bay Coal Fields in south western Tanzania

• Gulf Resources Ltd (ASX:GLF; “Gulf”) is entitled to purchase 60% interest in Liweta and Mbamba Bay Coal Fields subject to approval by Gulf following an initial technical study

Summary

The Directors of Gulf Resources Ltd are pleased to announce the signing of a Heads of Agreement with Tan Resources Ltd, to evaluate the potential of a Public Private Partnership / joint venture between the Company, Tan and Tanzania’s National Development Corporation for the development of Liweta and Mbamba Bay Coal Fields in south western Tanzania. Gulf is entitled to purchase 60% interest in Liweta and Mbamba Bay Coal Fields subject to approval by Gulf following completion of an initial technical study, for a cash consideration of $60,000 USD and commitment to embark on a scoping study to move the resources towards development. The heads of agreement will be superseded by a more substantial Joint Venture Agreement prior to the commencement of the initial scoping study.

Commentary

Scott Reid, Chairman of Gulf Resources, said “This agreement is another tangible step by the company as it pursues the development of the Mtwara infrastructure corridor project”.

Mr Reid further commented that “The development of strong relationships with local partners is a key cornerstone of the plan in Gulf’s African-Asian development strategy”.

Further Details & Background Informatio n

Tanzania is considered by government studies to possess a considerable sized moderate to low sulphur coal deposit. This resource is currently exploited only on a small scale at Kiwira Coal Mine, but is potentially suitable as a source of energy or coal-based materials for domestic industries. There is potential for export to neighboring Africa and Indian Ocean countries.

The Tanzanian coal fields are contained in the rocks of the Karoo Super group. Eight Karoo basins containing eleven recognised coal fields occur in the southwest part of the Tanzania. Most significant coal resources in southern Africa are found in the Karoo Super group.

Whilst the coal fields of Tanzania have been well known for over a century, they have never been fully developed or systemically explored using modern exploration techniques.

The Liweta and Mbamba Bay coal fields are two of a number of coal fields found in Karoo aged sediments in South Western Tanzania. The coal fields are an important element in Gulf’s Mtwara development corridor strategy, which already includes the Mtwara Port redevelopment and a number of other emerging opportunities along the corridor zone.

Based upon technical information provided and published by the NDC, investigations by the Tanzanian Geological Survey and other publicly reported studies into the characteristics of the SW Tanzanian coal fields, it is estimated that the Liweta and Mbamba Bay coals fields have a combined exploration potential beyond 60 million tonnes.

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Level 10 Gold Fields House 1 Alfred Street Sydney NSW 2000 ● PO Box R745 Royal Exchange NSW 1225 Australia t +61 2 8247 5333 ● f +61 2 9247 7722

ACN 115 027 033

www.gulfresources.com.au

SYDNEY ● LONDON ● TANZANIA ● VIETNAM

This estimate cannot be categorised as resource, in accordance with section 18 of the JORC Code, and is therefore regarded only as a potential target tonnage. Both coal fields require additional geological investigation.

Liweta Coal Field

The Liweta coal field is located in the Mbinga District, Ruvuma Region. It is situated about 170km west of Songea and about 10 km south of Manda port. Two economic coal bearing formations (K2 and K4) up to 1.4m thick are identified out of six (6) coal seams reported. The Liweta coal field contained exploration potential for 34 million tonnes of coal in the two coal seams. The weighted values of historical quality parameters for coals from Liweta coalfield are ash – 28.4%, Volatile Matter – 31.38%, Sulphur – 0.71%, Fixed Carbon – 50.3% and Calorific Value 8080Kcal/kg.

Mbamba Bay Coal Field

The Mbamba Bay coal field is also situated in the Mbinga District of the Ruvuma region on the shores of Lake Nyasa south of Mbamba Bay town, about 150km from Songea town. Coal seams are up to 1.75m thick and both overlain and underlain by cross-bedded arkosic sandstones. Exploration Potential of Mbamba Bay coal field is beyond 29 million tonnes. The historical coal quality parameters of one of the seams from this coalfield are Ash – 13.6%, Volatile Matter – 21.3%, Sulphur – 0.31%, Fixed Carbon – 53% and Calorific Value – 6044Kcal/kg.

About Gulf Resources

Gulf Resources is a resources development and investment company that crosses the divide between Africa and Asia. Gulf’s strategic position aims to maximise the natural development synergies that exist between Africa and Asia. Gulf operates at this new frontier of developed and developing markets in order to uplift shareholder value on a sustainable basis.

We seek Sustainable Success through:

• Partnerships for Prosperity

• Diversification of Assets

• Intellectual Expertise and Capital

With established bases in Tanzania and Vietnam, Gulf’s team of seasoned engineering, project management and resources specialists are set to develop projects of major significance to both the company and the countries in which Gulf operates.

Coupled with a strong investment bias, experienced finance division and high level partnership approach, the group is on a growth trajectory to become a major consolidated resource development and investment enterprise within five years.

Gulf’s current partners include:

• Hanoi General Export and Import Corporation, a member of the Hanoi General Export and Import Group (“Geleximco”), since its establishment in 1993 has become one of Vietnam’s largest private industrial conglomerates with substantial interests across a broad range of sectors including mining, finance, manufacturing, commodity trading, agricultural processing, energy and resources.

• The National Development Corporation of Tanzania, an organisation owned by the Government of the United Republic of Tanzania with a specific mandate to develop, coordinate and implement infrastructural and economic projects through Public Private Partnerships (PPP). Among other things, the Government of the United Republic of Tanzania has mandated NDC, on an exclusive basis, to coordinate and guide implementation of the various projects being undertaken in coordination with the Southern African Development Community (SADC) Regional Spatial Development Initiative. Projects identified for the NDC include power generation and transmission, transport infrastructure, telecommunications, water, agriculture, mining, tourism, forestry and fisheries and the development and regulation of Export Processing Zones and Free Ports in Tanzania

• The Tanzanian Port Authority (TPA) is a statutory body incorporated to establish and coordinate Tanzania’s ports and harbours system and to provide services relating to ports and harbours facilities, including carrier, navigation, stevedore, wharfage and storage services. The TPA is also tasked with the construction and operation of ports and harbours. As an incorporated State entity, the TPA currently owns all the major ports and harbours in Tanzania, including Dar Es Salaam, Tanga, Mtwara and all lake ports in Tanzania.

Level 10 Gold Fields House 1 Alfred Street Sydney NSW 2000 ● PO Box R745 Royal Exchange NSW 1225 Australia

t +61 2 8247 5333 ● f +61 2 9247 7722

ACN 115 027 033

www.gulfresources.com.au - Page 2 -

SYDNEY ● LONDON ● TANZANIA ● VIETNAM

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Attribution

The information in this report that relates to Exploration Results is based on information compiled by Andrew Johnstone who is a Fellow of the Financial Services Institute of Australasia, members of both the Australian and American Societies of Exploration Geophysicists, and member of the Australasian Institute of Geoscientists (AIG). Mr Johnstone provides exploration management services to Gulf Resources Ltd. Mr Johnstone has extensive qualifications and experience in the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Johnstone consents to the inclusion in the report of the matters based on information provided by him and in the form and context in which it appears.

Further Information:

Scott Reid, Chairman t: 02 8247 5333

Level 10 Gold Fields House 1 Alfred Street Sydney NSW 2000 ● PO Box R745 Royal Exchange NSW 1225 Australia t +61 2 8247 5333 ● f +61 2 9247 7722

ACN 115 027 033

SYDNEY ● LONDON ● TANZANIA ● VIETNAM

www.gulfresources.com.au - Page 3 -