CASSIUS MINING LIMITED — Capital/Financing Update 2008

Mar 31, 2008

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ASX ANNOUNCEMENT 1 APRIL 2008

GULF IN TANZANIAN COPPER PROJECT

• Secures High Grade copper Project

• Technical and Economic Scoping study started

• Ongoing Partnership with National Development Corporation of Tanzania

Gulf Resources Ltd (ASX:GLF) is pleased to announce, that in accordance with its previously announced strategy of assessing and reviewing opportunities for growth, it has signed a Memorandum of Understanding (MoU) with the National Development Corporation of Tanzania (NDC) to investigate and jointly develop the Pare Mountains Copper deposits in the Mwanga District, Kilimanjaro Region of Tanzania.

The NDC is a Tanzanian parastatal organisation owned by the Government of the United Republic of Tanzania. The NDC has been given specific mandates to develop, coordinate and implement infrastructural and economic projects, including base metals such as copper and industrial minerals through Public Private Partnerships (PPP).

The Pare Mountains copper deposits are of major interest to the NDC and contain other important elements including sulphur, iron and traces of gold, tungsten and silver.

Senior Gulf management and technical consultants have started a technical and economic scoping study in country on the project.

Further Information

About Gulf Resources

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.

Gulf Resources is a resources development company that crosses the divide between Africa and Asia. Gulf’s strategy is aimed at maximising its position in the natural development synergies existent between Africa and Asia. Gulf operates at this new frontier of developed and developing markets in order to uplift shareholder value on a sustained basis.

With established bases in Tanzania and Vietnam, Gulf’s team of seasoned mining and project management specialists is in place 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 mining enterprise within 5 years.

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

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www.gulfresources.com.au

PROJECT OVERVIEW

The Pare Mountains copper fields are located in the north east of the country (see attached location map) and can be reached on the main tarmac road running from Dar Es Salaam to Arusha. The Railway line from Arusha to Tanga Port runs parallel to the road in the region and the area has grid power, water and telecommunications infrastructure.

The copper mineralisation was initially reported in 1955 and, in the later part of the 1950’s, limited trenching and diamond drilling was completed. Two small open pits were established to extract ore. A total of 247 tonnes of ore was extracted at an average grade of 10.18% copper. Ore was shipped to both the Kilembe Mines Ltd in Uganda and to the Japanese market (Kwawakami Trading Company Ltd).

ABOUT TANZANIA

Located in Eastern Africa, bordering the Indian Ocean, between Kenya and Mozambique, Tanzania is naturally endowed with abundant mineral resources.

Mining is one of the fastest-growing economic sectors in Tanzania and contributes roughly half of its foreign exchange and around 3.2 per cent of GDP. Tanzania is now the third largest producer of gold in Africa after South Africa and Ghana.

Tanzania’s two railway networks connect 14 out of 20 cities and the neighbouring country of Zambia. There are several international and domestic airports linking Tanzania to the world and three major ports: Dar es Salaam, Tanga and Mtwara, which function as hubs for traffic emanating from, and destined to the land locked neighbouring countries of Uganda, Burundi, Rwanda, Zambia, Malawi, and Democratic Republic of Congo. There is a sustained programme for building good quality roads. Nonetheless, infrastructure is one of the key investment drivers which Tanzania is struggling to improve.

On the wider economic front, Tanzania has been carrying out successful economic and structural reforms that have improved economic performance and sustained growth. These achievements are based on solid foundations of political and economic reform undertaken by the Government since 1986, placing Tanzania in a position where a prolonged period of high GDP growth rates is expected. In addition, Tanzania has a stable fiscal regime with sustainable level of inflation. Under its economic recovery program, Tanzania increased revenue streams and substantially reduced spending. Continuous decline in the rate of inflation is mainly the result of prudent fiscal and monetary policies.

With a Government determined to promote a stable, long term sustainable resources industry as the economic powerhouse of the future, Tanzania provides a highly favorable environment to commit significant investment.

ABOUT THE NATIONAL DEVELOPMENT CORPORATION

The National Development Corporation (NDC) is an economic development organisation established as a statutory corporation by an Act of Parliament in 1962. The purpose of NDC is to initiate, develop and guide the implementation of economically viable projects in partnership with the private sector.

The primary objectives of NDC are:

• To identify and lead the development of projects which have high inherent potential for economically viable exploitation, in partnership with the private sector.

• To initiate and facilitate the establishment of a competitive and sustainable world class industrial infrastructure in the manufacturing, processing and packaging primarily aimed at adding value to the output from the primary production activities of mining, agriculture as well as the exploitation of natural resources, with the overall objective of spearheading export-led growth.

• To create a human capital base, enabling the sustainable development and implementation of economically viable projects.

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

Among other things, the Government of the United Republic of Tanzania has mandated NDC, on an exclusive basis, to co-ordinate 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.

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Source: CIA World fact Book

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Pare Copper Project
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Source: Tanzanian Ministry of Mines and Energy, 2005

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

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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

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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