CASSIUS MINING LIMITED — Interim / Quarterly Report 2008

Apr 28, 2008

Gulf Resources Ltd (ASX: GLF) Third Quarter (March 2008) Activities Review

---

ASX ANNOUNCEMENT

29 April 2008

THIRD QUARTER ACTIVITIES REVIEW

for the period ending 31 March 2008

KEY POINTS

• Substantial preparatory investigation, due diligence and review work was carried out during the quarter in Vietnam and Tanzania. Immediately post the quarterly period the following was achieved.

• Strategic Alliance signed with one of Vietnam’s largest private industrial conglomerates examining potential of jointly (50/50 basis) developing a Coal To Liquid fuel conversion plant project in northern Vietnam.

• Signed Memorandum of Understanding with Tanzania Ports Authority to determine the potential of a public private partnership for the development, modernization and expansion of the Mtwara Sea Port, regulating the associated Export Processing Zones and Free Port facility.

• Signed a Memorandum of Understanding with the National Development Corporation of Tanzania to investigate and jointly review the Pare Mountains Copper project in the Mwanga District, Kilimanjaro Region of Tanzania.

SUMMARY & REVIEW

Vietnam

Post the quarterly period, the company has entered into a Strategic Alliance and Mutual Cooperation Agreement with the Hanoi General Export and Import Corporation, a member of the Hanoi General Export and Import Group (“Geleximco”) 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 boards of Geleximco and Gulf have resolved to implement a broad programme for further developing complimentary business activities in the mining, energy, finance, commodities and infrastructure fields.

In particular, the groups have agreed to form a joint venture company to examine the feasibility of developing, in two stages, a 60,000 barrel per day (bpd), Coal to Liquid fuel conversion plant project in northern Vietnam (“Vietnam CTL Project”).

==> picture [130 x 281] intentionally omitted <==

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

Gulf Resources Ltd (ASX: GLF) Third Quarter (March 2008) Activities Review

---

Tanzania

Mtwara Port

Post the quarter the company has entered into a Memorandum Of Understanding (“MOU”) with the Tanzania Ports Authority (“TPA”) to jointly determine the potential of a public private partnership for the development, modernization and expansion of the Mtwara Sea Port, including regulating the associated Export Processing Zones and Free Port facility.

The Mtwara Sea Port is part of the Mtwara Development Corridor, which includes projects identified under the Spatial Development Initiative including power generation and transmission, transport infrastructure, telecommunications, water, agriculture, mining (including iron ore and coal), tourism, forestry and fisheries (''the MSP Project").

==> picture [246 x 185] intentionally omitted <==

The 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.

Relationship with the National Development Corporation

Immediately post the quarter Gulf signed a Memorandum of Understanding (“MoU”) with the National Development Corporation of Tanzania (“NDC”) to investigate and jointly review the Pare Mountains Copper project in the Mwanga District, Kilimanjaro Region of Tanzania.

The National Development Corporation of Tanzania, an organization 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.

Madagascar

Gulf has agreed with Mauritius based Madagascar Holdings Ltd to jointly seek opportunities in the Madagascar resources sector through local entity Austral Malagasy Mining SARL. Current activities during the quarter focussed on a minerals sands project.

2

Gulf Resources Ltd (ASX: GLF) Third Quarter (March 2008) Activities Review

---

Southern Sudan

Company management is reviewing an advanced copper/gold resource opportunity in the country.

South Africa

A number of opportunities have been reviewed in South Africa. The company is in discussion with several BEE and other partners to apply for new order prospecting rights in a number of key strategic and prospective areas. The company is in the process of making applications for new order prospecting rights. The approval process is expected to take at least 90 days.

AUSTRALIAN PROJECTS

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

Exploration activity has commenced at the Crystalbrook Project following the wet summer period. Access is being established to conduct ground geophysical surveys to extend the existing grid and provide coverage over EPM 15707. Drilling is planned to target both areas and will commence mid-year.

• Swan Creek Project Northern Territory (EL24764, EL25083 and EL10097 and EL10096 - GLF 100%)

Positive exploration results have been received from the field work undertaken during October, 2007. Stream sediment and soil sampling programmes reported anomalies for gold and copper consistent with previous exploration results. Soil samples reported copper to 64 ppm in transported sediment proximal to a north west trending structure with copper mineralisation associated with quartz veining in carbonaceous shales. The soil sample grid will be extended to aid in drill targeting. Further field work is scheduled for July – August.

• Ewingar Northern New South Wales (EL 6490 - GLF 100%)

The tenement has been renewed with exploration to commence following finalisation of the Native Title Right to Negotiate process by the New South Wales Department of Natural Resources.

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.

3

Gulf Resources Ltd (ASX: GLF) Third Quarter (March 2008) Activities Review

---

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 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.

• 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.

Further information

Scott Reid, Chairman t 02 8247 5333 Wayne Kernaghan, Finance Director t 02 8247 5333

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.

www.gulfresources.com.au

==> picture [595 x 36] intentionally omitted <==

4

APPENDIX 5B

MINING EXPLORATION ENTITY QUARTERLY REPORT

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

	Name of entity
	Gulf Resources Limited
	ABN 13 115 027 033 Consolidated statement of cash flows		Quarter ended (“current quarter”)
			31 March 2008
	Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for: (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest & other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows		Current quarter $A’000	Year to date (9 months) $A’000
			(613) (204) 1	(1,766) (733) 33
			(816)	(2,466)
	Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - (3) 399 (200)	(97) (304) (133) 399 (500)
			196	(635)
			(620)	(3,101)

Appendix 5B Mining Exploration Entity Quarterly Report

1.13 Total operating and investing cash flows (brought forward)	(620)	(3,101)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) – expense of issue Net financing cash flows	- -	1,192 (34)
	-	1,158
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(620) 1,016	(1,943) 2,339
	396	396

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities	Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities
1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		180
		-
1.25 Explanation necessaryforanunderstanding ofthe transactions - Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets andliabilities but didnotinvolve cash flows - 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhas an interest -	Explanation necessaryforanunderstanding ofthe transactions
	-
	-
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhas an interest
	-

Appendix 5B – Page 2

Appendix 5B Mining Exploration Entity Quarterly Report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount available $A’000	Amount used $A’000
	-		-
	-		-
Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development			$A’000
			300
			-
Total			300
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to therelateditemsinthe accountsis asfollows.	Current quarter $A’000		Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	396		1,016
	-		-
	-		-
	-		-
Total: cash at end of quarter(item 1.22)	396		1,016

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter

Appendix 5B – Page 3

Appendix 5B Mining Exploration Entity Quarterly Report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	54,604,725	40,904,720	-	-
7.5 +Performance Rights 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	-	-	-	-
	- -	- -	- -	- -
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	23,327,402 2,250,000	16,577,402 -	$0.20 $0.25	30 June 2011 31 December 2009
	-	-	-	-
	-	-	-	-
	-	-	-
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

Appendix 5B – Page 4

Appendix 5B Mining Exploration Entity Quarterly Report

Compliance Statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 29 April 2008 (Company Secretary)

Print name: Wayne Kernaghan

---

NOTES

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities: The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards: ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

Appendix 5B – Page 5