CASSIUS MINING LIMITED — Capital/Financing Update 2012

Jun 20, 2012

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ASX ANNOUNCEMENT

21 JUNE 2012

DRILLING CONFIRMS PRESENCE OF HIGH GRADE (8‐30% P2O5) PHOSPHATE MINERALISATION

Gulf Industrials Limited (Gulf) (ASX: GLF) is pleased to report the results of its soil sampling and six hole drill program between the Busumbu prospect and the Namekara Vermiculite mine in eastern Uganda.

The phosphate target is hosted in alkaline rocks such as carbonatite within the Bukusu complex, one of Africa’s largest reported alkaline / carbonatite complexes.

The drilling results confirm the presence of high grade (ca.20‐30% P2O5) phosphate mineralisation in weathered carbonatite, which may have DSO (direct shipping ore) potential (refer to table 1 for drilling results). Lower grade mineralisation (8‐13% P2O5) may have potential for beneficiation or for direct agricultural application.

• 510 soil samples collected along approximately 4km strike length.

• Soil sample analyses indicate up to 3km strike extent of phosphate mineralisation is likely between Busumbu and Namekara.

• Substantial phosphate mineralised footprint for future exploration.

• Six diamond core holes completed for 301m total.

• 8.23‐29.2% P2O5 in drill hole carbonatite samples to 60m down‐hole, at Busumbu and Namekara.

• XRD analyses of the crystalline mineral phases indicates that apatite is the predominant phosphate mineral, with lesser quantities of carbonate‐fluorapatite and minor crandallite noted.

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Gulf Industrials Limited │ 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.gulfindustrials.com.au

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Figure 1: Provisional Geology map of the Bukusu Complex. Geology after (Baldock, 1967)

Gulf Industrials Limited │ 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.gulfindustrials.com.au

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Figure 2: Map of soil sample results, contoured using general purpose gridding in Minex® 6.1.1 software. Drill collars are referenced in Table 1.

Background

Gulf operates the high‐grade Namekara vermiculite mine in south eastern Uganda, in the south‐western part of the Bukusu Complex which is one of Africa’s largest alkaline carbonatite complexes. Gulf previously identified historical information relating to a phosphate mine operated intermittently on Busumbu ridge, about 3km east of Namekara, during the period 1944 to 1963. Research at the Busumbu phosphate deposit by Edwards (1995) described the formation of calcium‐aluminium phosphates such as crandallite in the regolith to form “soft phosphate rock” and re‐precipitation of apatite to form “hard phosphate rock”.

Gulf’s 2011/2012 soil sampling and core drilling at the Busumbu – Namekara target was aimed at confirming previous the reports of phosphate mineralisation, to evaluate mineralogy and identify potential for extensions at depth and along strike.

Geology

According to previous mapping by Baldock (1967) the Bukusu Complex is composed of alkaline and ultrabasic rocks forming ring dyke structures surrounding a central vent agglomerate. Radial faulting from the centre outwards is present, though very limited outcrops have restricted the amount of detailed mapping that can be carried out. In general, the Bukusu Complex is surrounded by a broad zone of feldspathisation or fenites in which leucocratic granite, syenite and quartz‐pegmatoid have been developed from alteration of the country rocks (granodiorite‐gneisses).

Baldock also refers to “sheets and screens” of phoscorite intercalated with carbonatite in a borehole at the Busumbu phosphate prospect. The phoscorite is quoted as consisting of olivine (34.1%), magnetite (23.6%), apatite (22.1%) and biotite (13.5%) and to contain trace amounts of zircon and baddeleyite.

Gulf Industrials Limited │ 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.gulfindustrials.com.au

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The Bukusu Complex also has potential to host several other mineral commodities including Calcium Carbonate, Magnetite and possibly Rare Earth Elements (REE).

Current Exploration Programme

Soil sampling was conducted to delineate the potential mineralised target, followed by diamond core drilling to test for depth extents, determine tenor of phosphate mineralisation and to identify phosphate minerals present. Soil sample results summarised in Table 2 and in Figure 2 confirm the possible extension of phosphate mineralisation between Busumbu and Namekara.

The present drilling indicates that the phosphate mineralisation north of Namekara is hosted within a steeply dipping carbonatite ring dyke that is likely to be the westward extension of similar carbonatite‐ hosted mineralisation at the Busumbu prospect. Low grade phosphate values were intersected in the ferricrete profile in borehole ND13 between 3 and 16.5m depth (Table 4). Higher grade phosphate values in the range 8.23% to 29.2% were intersected in weathered carbonatite below the soil / ferricrete horizon (Tables 1 and 4).

XRD analysis of 12 selected samples indicates that the main crystalline phosphate mineral is apatite, with lesser amounts of crandallite and carbonate‐fluorapatite (Table 3). Other crystalline minerals identified include magnetite, hematite, goethite. Poorly crystalline or amorphous material is suggested in some samples (e.g. E0588 & E0643), where the XRD patterns have high background and broad peaks.

Table 1: Summary Drill Intersection Composites

Entire phosphate intersections not yet assayed in boreholes ND03, ND13 or ND 43; these will be submitted for analysis in the near future.

Hole ID	East	North	Depth	Azimuth	Plunge	From	To	Interval	**P2O5% **
ND03	639825	92940	40.14	24	‐50	4.7	40.14	35.44	20.6 ‐ 29.2 (range)
ND13	639660	92959	62.04	26	‐50	17.5	60.5	43	13.7‐25.5 (range)
ND43	639587	92980	50.04	22	‐52	7	36.2	29.2	19.9‐26.5 (range)
ND55	641198	92466	55.04	9	‐51	15.88	24	8.12	11.97
						24	36.5	12.5	23.98
ND56	641206	92523	29.14	181	‐50	19.74	24.5	4.76	11.94
ND57	641162	92625	64.6	10	‐50	5.2	23.1	17.9	18.29
						23.1	32.6	9.5	21.72
						32.6	56.6	24	19.36

Note: The boreholes are drilled obliquely across what is interpreted to be steeply dipping mineralisation, therefore the intervals do not represent true width, which is less than sampled width. Composite P2O5 values were derived using Micromine®2011 software. Samples were analysed during June 2012 by Genalysis Perth, using Li borate fusion XRF according to their “Phosphate Majors XRF Package” and during March 2012 according to their “REE FP6/MS package”.

Gulf Industrials Limited │ 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.gulfindustrials.com.au

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Table 2: Soil Sample Statistics for the Phosphate Exploration Target .

Statistics generated using GeoAccess® Professional software package.

Statistics (n = 510 samples)	Phosphorus (ppm)
Minimum	10487
Maximum	37040
Mean	17650
Median	15413
Std Dev	5885
Percentiles
10	11993
50	15413
90	26855
95	30031
97.5	31598
99	32714

Note: Soil samples tested on site using hand‐held INNOV‐X® X‐5000 XRF equipment. The soil samples were dried, pulverised using pestle and mortar before screening to ‐180 micron for analysis. The soil sample results should be considered indicative until confirmed by analysis at an accredited laboratory

Table 3: XRD Mineralogy Summary

Sample ID	Borehole	From	To	Apatite	Crandallite	Carbonate‐ fluorapatite	Magnetite	Hematite	Goethite
		(m)	(m)	%	%	%	%	%	%
D0945	ND03	6.5	7.5	37	3	29	8	3	17
D0960	ND03	21.8	22.8	57	1	7	13	5	16
D0976	ND03	38.04	40.14	48	5	21	4	3	18
D1191	ND13	27.3	28.8	18	6	27	4	5	23
D1206	ND13	42.5	43.5	63	1	6	12	4	14
D0982	ND43	9.8	11	49	5	13	8	4	20
D0998	ND43	26.6	27.6	36	5	22	9	4	22
E0588*	ND55	11.2	14.15	36		5	11	3	19
E0594	ND55	30.6	33.5	35	2	31	8	1	20
E0641	ND57	10.54	14.1	40	1	4	10	10	34
E0643**	ND57	23.1	26.1	23					34
E0649	ND57	47.1	53.4	51	1	1	12	4	30

Gulf Industrials Limited │ 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.gulfindustrials.com.au

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Note: Qualitative analysis on all samples was performed at Genalysis Intertek Perth, using the Bruker Diffrac [plus] Search/Match software with the ICDD PDF‐2 (2004) database. Quantitative phase analysis was performed using SIROQUANT[TM] Version 3 software. Results are given as weight % of the total crystalline phases. No determination for amorphous content was undertaken. Sample E0588 contains zeolite, periclase, zircon and anatase. *The analysis of sample E0643 should be taken as a guide only and is indicated to contain Fe‐phosphates and gibbsite: further work is required to confirm mineralogy.

Table 4: XRF Assay Results for Selected Elements

SAMPLE ID	BOREHOLE	FROM	TO	P2O5	CaO	MgO	Fe2O3	Al2O3	SiO2	LOI
		(m)	(m)	%	%	%	%	%	%	%
D0943	ND03	4.70	5.89	20.62
D0945	ND03	6.50	7.50	26.92	34.19	0.35	21.41	4.36	4.95	3.70
D0946	ND03	7.50	8.80	28.16
D0948	ND03	9.70	10.65	28.04	36.87	0.35	20.90	3.03	3.73	3.27
D0949	ND03	10.65	11.65	26.63
D0951	ND03	12.65	13.70	24.35	29.94	0.49	34.29	2.78	1.50	2.62
D0952	ND03	13.70	14.70	23.19
D0954	ND03	15.70	16.70	25.34	32.14	0.47	30.94	2.20	2.49	2.26
D0955	ND03	16.70	17.70	23.94
D0957	ND03	18.70	19.80	25.02	31.91	0.53	32.48	1.66	2.24	1.89
D0958	ND03	19.80	20.50	23.81
D0960	ND03	21.80	22.84	25.98	33.99	0.50	31.04	1.08	1.97	1.57
D0961	ND03	22.84	23.88	25.39
D0963	ND03	24.88	26.15	25.12	32.58	0.25	26.43	1.27	7.05	2.85
D0964	ND03	26.15	27.15	25.78
D0966	ND03	28.15	29.15	23.41	30.78	0.60	32.22	1.07	6.05	1.55
D0967	ND03	29.15	30.15	24.49
D0969	ND03	31.30	32.10	24.39	31.39	0.48	27.35	3.11	6.34	2.80
D0970	ND03	32.10	33.10	23.62
D0972	ND03	34.10	35.74	26.52	34.21	0.50	28.03	2.22	2.11	2.06
D0973	ND03	35.74	37.00	28.60
D0975	ND03	38.04	40.14	29.14	38.20	0.33	17.13	3.39	4.91	3.31
D1166	ND13	3.00	4.00	1.40
D1169	ND13	6.15	7.04	1.47
D1171	ND13	8.04	8.72	2.05	1.36	0.52	30.17	18.55	32.94	8.04
D1174	ND13	10.72	11.50	1.58
D1176	ND13	12.50	13.50	2.29	1.14	0.49	32.07	18.37	30.55	8.58
D1179	ND13	15.50	16.50	7.61
D1181	ND13	17.50	18.50	18.75	21.97	0.54	29.13	8.67	11.51	5.33
D1185	ND13	21.40	22.40	22.09
D1186	ND13	22.40	23.40	19.34	22.97	0.46	26.68	8.31	14.12	4.86
D1190	ND13	26.30	27.30	21.45
D1191	ND13	27.30	28.80	20.73	25.56	0.42	21.47	8.84	12.92	5.78
D1196	ND13	32.10	33.10	13.67	15.73	0.79	21.71	14.84	20.18	7.50
D1201	ND13	37.10	38.20	21.40	28.04	0.55	20.42	7.56	12.59	5.22
D1202	ND13	38.20	39.20	20.65
D1206	ND13	42.50	43.50	25.53	33.74	0.64	29.05	2.10	3.48	1.93
D1208	ND13	44.60	45.60	23.37
D1211	ND13	47.80	48.70	9.15	11.82	0.99	22.50	14.75	28.10	6.96
D1214	ND13	52.70	53.80	17.00
D1216	ND13	54.80	56.30	20.12	27.20	0.84	27.08	3.43	13.46	2.67

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Gulf Industrials Limited │ 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.gulfindustrials.com.au

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D1220	ND13	59.04	60.50	13.84
D0980	ND43	7.00	8.80	26.08
D0982	ND43	9.80	11.00	24.26	30.08	0.50	28.81	4.56	4.03	3.49
D0984	ND43	12.00	13.00	25.21
D0986	ND43	14.00	15.00	25.59	31.50	0.57	29.17	3.28	2.94	3.00
D0988	ND43	16.00	17.00	25.87
D0990	ND43	18.00	19.00	19.88	19.21	0.38	27.77	12.72	9.25	7.29
D0992	ND43	20.40	21.50	21.65
D0996	ND43	24.66	25.66	24.75
D0998	ND43	26.60	27.60	26.48	30.74	0.42	26.68	5.60	1.48	4.39
D1000	ND43	29.20	30.20	21.75
D1102	ND43	31.20	32.20	21.68	26.67	0.34	23.90	6.98	10.82	5.19
D1104	ND43	33.20	34.90	24.49
D1106	ND43	35.20	36.20	23.50	31.52	0.30	18.64	2.34	15.69	3.38
E0587	ND55	8.12	11.20	12.38	16.27	1.71	51.19	2.68	9.11	1.34
E0588	ND55	11.20	14.15	12.69	17.10	2.95	40.99	3.78	14.44	2.32
E0589	ND55	14.15	17.82	11.86	16.08	3.34	50.37	1.75	9.88	0.72
E0590	ND55	17.82	21.00	11.36	15.34	3.94	48.64	2.20	11.48	1.54
E0591	ND55	21.00	24.00	11.62	15.41	2.85	48.30	2.55	11.81	1.84
E0592	ND55	24.00	27.00	21.13	28.82	1.41	24.42	4.37	11.42	3.41
E0593	ND55	27.00	30.60	23.90	32.73	0.82	23.18	3.67	7.59	3.51
E0594	ND55	30.60	33.50	25.04	34.10	0.73	21.82	3.09	6.63	3.31
E0595	ND55	33.50	36.50	25.91	34.77	0.63	21.68	2.18	6.03	3.59
D2911	ND56	19.74	20.90	11.46	14.97	0.97	47.28	1.92	16.24	1.66
D2912	ND56	20.90	22.74	12.02	15.90	1.31	38.74	3.58	20.88	2.77
D2913	ND56	22.74	24.50	12.17	15.83	0.73	56.05	0.82	8.34	0.29
E0640	ND57	5.20	10.54	16.73	20.65	0.48	51.15	1.49	1.26	2.59
E0641	ND57	10.54	14.10	18.00	22.50	0.39	50.07	0.87	0.66	1.78
E0642	ND57	14.10	23.10	19.32	22.82	0.39	42.31	3.63	2.73	3.50
E0643	ND57	23.10	26.10	22.88	11.01	0.07	29.13	15.55	1.72	11.61
E0644	ND57	26.10	29.20	21.62	14.86	0.18	33.95	11.29	1.67	9.03
E0645	ND57	29.20	32.60	20.78	23.30	0.32	41.31	3.32	0.84	4.22
E0646	ND57	32.60	38.70	18.84	22.31	0.43	43.94	2.60	1.70	3.57
E0647	ND57	38.70	44.10	17.41	20.72	0.50	50.54	1.81	0.62	2.40
E0648	ND57	44.10	47.10	25.39	23.55	0.18	28.61	8.23	1.22	7.02
E0649	ND57	47.10	53.40	19.62	23.52	0.37	43.00	2.86	1.93	2.82
E0650	ND57	53.40	56.60	17.50	20.12	0.37	46.15	3.77	2.73	3.46
E0651	ND57	56.60	60.90	8.23	10.59	1.54	55.36	3.66	9.66	3.46
E0652	ND57	60.90	64.44	12.31	14.62	1.93	38.04	6.97	13.56	5.03

Notes: The 28 samples submitted in March 2012 were analysed for P and REE only. Subsequent samples were analysed during June 2012 according to the SGS "Phosphate Majors Package" option.

References

Baldock, J.W. (1967). The Geology & Geochemistry of the Bukusu Carbonatite Complex, South‐Eastern Uganda. PhD thesis, University of Leeds. 312pp.

Edwards, K. (1995) Evaluation of the Phosphate Resource of Busumbu Ridge. MSc Thesis. Department of Earth Resources Surveys, Delft, The Netherlands. 192pp.

Gulf Industrials Limited │ 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.gulfindustrials.com.au

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About Gulf Industrials

Gulf is a Sydney‐based company with a focus on African industrial minerals development and with exploration and development assets in Uganda and Madagascar. Gulf operates the Namekara Vermiculite mine in south‐ eastern Uganda.

Competent Persons Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by A J Scogings and RN Barnett. Dr Scogings is a Member of the Australian Institute of Geoscientists and a Member of the Australasian Institute of Mining and Metallurgy. Mr Barnett is a Fellow of the Geological Society of South Africa and registered as a Professional Natural Scientist (SACNASP Registration Number 400106/06).

Dr Scogings and Mr Barnett have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Scogings and Mr Barnett are consultants to Gulf and consent to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Further Information

Mark Arnesen, CEO Wayne Kernaghan, Company Secretary

t | +61 2 8247 5333 t | +61 2 8247 5333

Gulf Industrials Limited │ 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.gulfindustrials.com.au