CASSIUS MINING LIMITED — Regulatory Filings 2012

Apr 29, 2012

ASX ANNOUNCEMENT

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30 APRIL 2012

THIRD QUARTER ACTIVITIES REVIEW

Gulf Industrials Limited (“Gulf” or “the Company”) (ASX Code: GLF), is pleased to provide shareholders with the Activities Review for the quarter ending 31 March 2012.

HIGHLIGHTS

• Sales for the quarter were 2,638 tonnes a 224% increase from the previous quarter.

• Increase in the sales price by an average of 12% across the vermiculite grades for the period 1 March 2012 to 28 February 2013 as agreed with Dupré Minerals.

• Production for the quarter was 3,181 tonnes a 46% increase from the previous quarter.

• Production for the quarter was negatively impacted by the failure of an electric control panel supplied with the dryer on 25 January 2012. This put the plant out of action for 35 days whilst a replacement unit was sourced, fabricated and transported to site from South Africa.

• The downtime incurred allowed maintenance to access the plant and upgrade and expand the dust extraction system with new exhaust ducts, additional fans, cyclones and a wet scrubber system. The system has been fully commissioned and is operating to expectation.

• Excluding the delays caused by the control panel, plant availability and utilisation have continued to improve and by the end of March were in line with budgeted expectations.

• A stand-by generator, capable of running the full plant, finally arrived on site and was commissioned in early April. This should have a significant impact on improved availability by reducing lost time due to grid/power failures.

• A magnetic separator is currently being installed and this should be commissioned during the fourth quarter which should assist with increased production and vermiculite recovery rates.

• The 3,600m diamond drilling program designed to upgrade the vermiculite resource was completed on 14 February 2012.

• Sterilisation drilling of prospective plant and waste dump areas was successfully completed.

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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Vermiculite Sales & Production Summary

Quarterly	Mar Qtr 2012	Mar Qtr 2011	% Increase/ Decrease		Year to 31/3/2012	Year to 31/3/2011
Sales (tonnes)	2,638	2,247	+17.4%		5,741	4,722
Production (tonnes)	3,181	2,247	+41.6%		7,142	4,722

As at 31 March 2012 the company had a total of 1,401 tonnes of finished product at site, in transit to the port or at the port. Subsequent to the end of the quarter this finish product has been sold.

Production

The plant only operated for 24 days in January but daily vermiculite production at an average of 60tpd was above expectations and the highest achieved since commissioning of the upgraded plant in mid October. Although slightly lower at an average of 55tpd, performance in March was highlighted by several days when production comfortably exceeded design. Efforts will remain focussed on increasing availability and reducing downtime.

Feasibility Studies

Progress with the feasibility study looking at expanding the operation was as follows:

• The drilling program designed to upgrade the confidence in the vermiculite resource was completed on 14 February with a total of 3,600m of triple core diamond drilling.

• A total of 1,000m of percussion drilling were successfully completed as part of a program to test and sterilise the proposed sites for future plant expansion and waste dumps.

• Seven percussion holes were drilled outside the Namekara mining lease area to assist in regional geological interpretation. Five of these holes intersected wide sections of coarse vermiculite and re-affirmed the prospectivity of the greater area for vermiculite.

• Preparation and analysis of samples for vermiculite in the on-site lab is a slow protracted process but is proceeding well.

• In late February a detailed review of the process design was undertaken with project engineers, LogiProc and Consultant Ron von Maltitz (a former head of Palabora’s Vermiculite operations). This led to the completion of a definitive process flow sheet and finalisation of a detailed set of plant specifications.

• In late March, LogiProc submitted a proposal to complete the engineering design for a new 50ktpa plant using the new process parameters. This is currently being finalised.

Exploration - Vermiculite

The exploration team was pre-occupied with the management of the resource drilling program for the bulk of the quarter with core logging, sample selection and preparation. In the absence of any internationally accredited laboratory for vermiculite analysis, all samples will be analysed on site using procedures, techniques and protocols developed in consultation with the existing production laboratory, external consultants and experts from Dupré Minerals, buyers and worldwide distributors of raw vermiculite.

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: Triple core diamond drilling, excellent vermiculite recovery and core logging

Exploration - Other

Dr Andrew Scogings, Principal of Perth-based Klipstone Consultants and a specialist in carbonatites, has been engaged together with Rob Barnett, an industrial minerals consultant, to review the Bukusu tenements and compile a comprehensive exploration work program. Their report and recommendations are expected to be finalised in May 2012.

Political, Social, Environmental, Safety & Health Matters

The safety record remains satisfactory with only one lost time incident reported. New identification documents and improved personal protective equipment were issued to all employees during the quarter.

Community relations continue to be cordial and co-operative and the company has reaffirmed its commitment to provide funding for the construction of school classrooms for the local residents in the vicinity of the current operations. Construction only awaits agreement and delivery of access to the preferred location by the community.

Two new boreholes were sunk to provide back-up to the community water supply.

Reichart & Reichart, the company’s environmental consultants have conducted a review of the environmental impact of the upgraded plant and are preparing a report as part of the feasibility of the next expansion.

CORPORATE

Board & Management Changes

On 13 February 2012 Mark Arnesen was appointed Director and Chief Executive Officer of the Company. Mr Arnesen had previously been Acting Chief Executive Officer and Chief financial Officer since October 2011.

Mr Mike Brook resigned as a non executive director of the Company.

FURTHER INFORMATION

|Mark Arnesen, CEO|t | +61 2 8247 5333|
|---|---|
|Wayne Kernaghan, Company Secretary|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

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COMPETENT PERSONS STATEMENT

The information in this report that relates to Mineral Resources is based on information compiled by Hennie Theart, BSc (Hons), MSc, PhD, Pr. Sci. Nat (SACNASP 400069/88), FSEG, FGSSA, FAAG; Shaun Crisp, BSc (Hons), Pr.Sci.Nat. (SACNASP 400076/09); and Brent Barber, BSc (Hons), MPhil, AusIMM (222559), AAPG (59319-8).

Hennie Theart and Shaun Crisp are registered with the South African Council for Natural Scientific Professions (SACNASP), a JORC Recognised Overseas Professional Organisation "ROPO" and Brent Barber is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). They are full-time employees of SRK Consulting and have experience which is relevant to the style of mineralisation, type of deposits under consideration and to the activity which they have undertaken, to qualify them as a Competent Persons, as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves'.

Hennie Theart, Shaun Crisp and Brent Barber consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

The information in this release that relates to the Exploration Process is based on information compiled by A Johnstone who is a member of the Australian Institute of Geoscientists (AIG). Andrew Johnstone provides exploration management consulting services to Gulf Industrials Ltd and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which Andrew Johnstone has undertaken 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'.

Andrew Johnstone consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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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