CASSIUS MINING LIMITED — Capital/Financing Update 2009

Apr 22, 2009

ASX ANNOUNCEMENT

23 April 2009

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Sale and Purchase Agreement Signed

SUMMARY

The Directors of Gulf Resources Ltd (ASX:GLF; “Gulf”) are pleased to announce that the company has signed a Sale and Purchase Agreement with Rio Tinto International Holdings Ltd (“Rio Tinto”) for the 100% acquisition of the Namekara Mining Operation in Eastern Uganda.

The Namekara Mining Operation is located near the towns of Mbale and Tororo, approximately 190kms east of the Ugandan capital, Kampala.

KEY POINTS

• Namekara is considered one of the largest high grade vermiculite mineral deposits in the world and is capable of supporting a low cost, long life operation.

• Excellent local infrastructure and within 10kms of main international railway line.

• Assistance from Rio Tinto during handover, initial months of operation and in securing off-take agreements.

• Sale includes:

• Tenements, both exploration and mining, which contain the world class Namekara Vermiculite Deposit;

• Processing and power plant;

• Mine office and all associated infrastructure and equipment;

• Vermiculite from Namekara has few impurities, excellent qualities and is widely known to the world vermiculite market.

COMMENTARY

Chairman of Gulf Resources, Mr Scott Reid commented “Acquisition of the Namekara project from Rio Tinto fits with our strategy to seek early cash flow opportunities”.

Mr Andrew Johnstone, Gulf’s Chief Operations Officer further commented, “The Namekara operation is capable of producing export quality vermiculite products with substantial profit margins due to the low cost nature of the operation, and excellent existing infrastructure”.

FURTHER DETAILS AND BACKGROUND INFORMATION

The signing of a Sale and Purchase Agreement for the acquisition of the Namekara Mining Operation in Eastern Uganda is a significant achievement for Gulf as it secures an operation with the capability of producing a near term cash flow.

Gulf intends to inject USD$500,000 working capital into the operation over the next 12 months to bring the operation to a sustained production rate of 8,000 tonnes per annum of vermiculite product, as agreed to in the Sale and Purchase Agreement. Gulf plans to expand the operation to achieve 25,000 tonnes per annum by 2012.

Whilst the specific terms of the agreement are confidential, the cash consideration component of USD$1,000,000 can be paid on a deferred basis until 31 March 2012. The Sale and Purchase Agreement is subject to conditions usual to a transaction of this nature, including regulatory approvals.

Gulf Resources has an experienced engineering, project management, legal and financial team, including resource specialists, on hand to manage the transition phase and bring the operation into a steady state of production.

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

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The Namekara Mining Operation and Vermiculite Mineralization

The Namekara mining operation is situated in Eastern Uganda near the towns of Mbale and Tororo close to the Kenyan border. The project can be accessed by road from Kampala via sealed highway (190km) or by flying to Kisumu in Kenya and driving across the border into Uganda.

Gulf intends to optimise the existing plant during transition to achieve a sustainable throughput of 8,000 tonnes per annum of vermiculite product. The existing mine/pit is effectively a free digging operation. It is a low cost, very long life operation.

The Namekara mineralization was first documented in the 1950s, but it wasn’t until 2002 that initial test production commenced with a small scale operation that produced 16,000 tonnes of ore between 2002 and 2006. Under Rio Tinto’s stewardship a substantial amount of work was completed including drilling over 64 holes for resource definition, pit optimisation and design, plant redesign, transport and infrastructure studies and market research.

The Namekara vermiculite deposit extends from near surface to a depth of 45 to 55m covering an area of 1 x 5km of which only a small portion has been exploited. The vermiculite is easily dug using standard mechanical excavating equipment.

World Vermiculite Market

The global vermiculite market is estimated by the United States Geological Survey (USGS) to be 800,000 tonnes, with production from Southern Africa accounting for approximately 39% of this amount.

Uses of Vermiculite

Construction

• Acoustic Finishes

• Air Setting Binder

• Construction Board

• Passive Fire Protection

• Floor & Roof Screeds

• Insulating and Light-Weight Concrete

• Gypsum Plasterboard

Agricultural

• Animal Feed

• Anti-Caking Material

• Bulking Agent

• Fertilizer Carrier

• Pesticide Carrier

• Seed Encapsulant

• Soil Conditioner

• Loose Fill Loft Insulation

• Sound Deadening Compounds

Industrial

• Absorbent Packing for Hazardous Goods

• Brake Pads & Brake Shoes

• Cast Items

• Dispersions

• Drilling Muds

• Filtration

• Fireproof Safes

• Fixation of Hazardous Material

• Furnaces

Horticultural

• Blocking Mixes

• Hydroponics

• Micro-Propagation

• Potting Mixes

• Root Cuttings

• Seed Germination

• Seedling Wedgemix

• Sowing Composts

• Twin Scaling Bulbs

• Insulation Blocks & Shapes

• Insulation - High & Low Temperature

• Molten Metal Insulation

• Moulded Products

• Nuclear Waste Disposal

• Paints

• Perfume Absorbent

• Sealants

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

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Uganda Country Profile

The Republic of Uganda is a landlocked country in East Africa. It is bordered by Kenya, Sudan, the Democratic Republic of the Congo, Rwanda, and on the south by Tanzania. The southern part of the country includes a substantial portion of Lake Victoria, within which it shares borders with Kenya and Tanzania.

Uganda has a well developed road and rail network connecting it to all surrounding countries, most importantly to the Indian Ocean ports of Mombasa in Kenya and Dar es Salaam in Tanzania. The country has a pleasant climate despite its equatorial position largely due to its overall higher altitude. Uganda also receives adequate annual rain fall for all its needs. According to the census of 2002, the population of Uganda was just over 24 million people of which 84% were Christians.

For further information on the country of Uganda:

Wikipedia: http://en.wikipedia.org/wiki/Uganda World Fact Book: https://www.cia.gov/library/publications/the-world-factbook/geos/ug.html

LOCATION MAP

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Location of Namekara mining operation
in Eastern Uganda, on Kenyan border
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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

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ABOUT GULF

Gulf Resources is a resource development company that creates value for shareholders through the identification, acquisition and valorisation of resource focused projects, with a particular emphasis on regions where Gulf maintains relationships that provide a strategic advantage.

With a team of experienced engineering, project management, legal, financial and resource specialists, Gulf fosters and seeks to develop projects of major significance to both the company and the countries in which Gulf operates.

Gulf currently operates in Eastern Africa, Vietnam, and Northern and Eastern Australia.

FURTHER INFORMATION

Scott Reid, Executive Chairman t | 02 8247 5333 Andrew Johnstone, Chief Operating Officer t | 02 8247 5333

ATTRIBUTION

This report is based on information compiled by Andrew Johnstone who is a member of the Australasian Institute of Geoscientists (AIG). 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.

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