CASSIUS MINING LIMITED — Capital/Financing Update 2011

Jul 13, 2011

==> picture [142 x 74] intentionally omitted <==

ASX ANNOUNCEMENT 14 JULY 2011

$11.85 million Non‐Renounceable Rights Issue

Gulf Industrials Limited ( Gulf Industrials ) has today announced that it will undertake a 3 for 5 non‐renounceable pro‐rata rights issue of ordinary shares at 4 cents per share ( Rights Issue ) to shareholders to raise approximately $11.85 million.

The Rights Issue is fully underwritten by Veritas Securities Limited and Ocean Equities Limited, and Gulf Industrials has appointed Veritas Securities Limited to act as lead manager to the Rights Issue.

Shareholders who take up their entitlement in full may apply for excess shares under the Rights Issue if these are available ( Shortfall Shares ).

Funds raised from the issue will be applied to:

• Final payment of USD $1,000,000 for the Namekara Vermiculite Mine;

• Carry out a drilling program at Namekara Vermiculite Mine of approximately 3,600 metres;

• Complete Namekara Vermiculite Mine optimisation project to ensure sustained plant production of 30,000 tonnes per annum;

• Conduct feasibility study for the Namekara Vermiculite Mine Expansion;

• Fund Namekara Vermiculite Mine Expansion long lead items;

• Fund the costs associated with the Offer; and

• Fund working capital and administration costs.

Gulf’s three major shareholders, Jonah Capital BVI Limited, African Lion 3 Limited and Contango Asset Management Limited representing 36% of the issued capital of the company have indicated that they intend to subscribe for their full entitlement under the Rights Issue.

Overview of Rights Issue

Eligible Gulf Industrials shareholders will be entitled to subscribe for 3 new Gulf Industrials ordinary shares for every 5 existing Gulf Industrials ordinary shares held at 7.00pm on Friday 22 July 2011, at a price of 4 cents per share. The offer price of 4 cents per share represents a 30% discount to the closing price of Gulf Industrials ordinary shares on 11 July 2011 (the last date of trading in Gulf Industrials ordinary shares prior to announcement of the Rights Issue). All new ordinary shares issued will rank equally with existing ordinary Gulf Industrials shares.

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

Eligible Gulf Industrials shareholders who take up their entitlement in full may also apply for Shortfall Shares. However, Shortfall Shares will only be allocated if there is a shortfall in subscriptions under the Rights Issue and allocation of the shortfall shares will be at the discretion of the Gulf Industrials Directors in consultation with the underwriters .

The Rights Issue is non‐renounceable and entitlements will not be tradeable on the ASX or otherwise transferable. Gulf Industrials shareholders who do not take up their entitlements in full will not receive any value for those entitlements that they do not take up.

An offer document setting out the terms of the Rights Issue will be lodged with ASX on or about 25 July 2011. Eligible shareholders will also be sent a copy of the offer document and application form on 25 July 2011.

Indicative Timetable*

Event	Date
Gulf Industrials announces Rights Issue	14 July 2011
Gulf Industrials sends notice to security holderscontaining the information required by Appendix 3B	15 July 2011
Existing Gulf Industrials Shares quoted on an ‘ex’ basis	18 July 2011
Record Date to determine Rights Issue entitlements	22 July 2011 (7.00pm)
Rights Issue opens	25 July 2011
Offer document dispatched to eligible shareholders	25 July 2011
Rights Issue closes	9 August 2011 (5.00pm)
Shares quoted on a deferred settlement basis	10 August 2011
ASX notified of under subscriptions	12 August 2011
Dispatch of holding statements	16 August 2011

• These dates are indicative only and are subject to change. Gulf Industrials reserves the right to amend this indicative timetable without notice.

Yours sincerely Gulf Industrials Limited

Sir Sam Jonah Chairman

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