CASSIUS MINING LIMITED — Regulatory Filings 2012

Jan 23, 2012

24 JANUARY 2012

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ASX ANNOUNCEMENT

OPERATIONS UPDATE

Summary

• Diamond drilling program returning wide zones of vermiculite as a part of the Feasibility Study to expand the Namekara Vermiculite Operation.

• Regional exploration discovered several new areas of vermiculite and initial drilling has confirmed wide bands of vermiculite.

• Logiproc engaged to look at parameters and process design of expanded plant.

• Production update at Namekara with nameplate production capacity expected by the June 2012 quarter following delays caused by heavy rain, power interruptions and commissioning of the new dryer.

• Pricing discussions commenced with off‐take partner Dupré and an increase in the sale prices of low to mid teens (“% over current price”) is expected for the period from March 2012 until February 2013. Negotiations are expected to be concluded shortly.

Production

Gulf’s focus at Namekara in Uganda has been centred around the installation of the new dryer and the finalisation of expansion of the plant to 30,000tpa which commenced on 18 September 2011 with production ceasing for approximately one month. Commissioning of the dryer took longer than expected and the ramp up to design capacity was affected by heavy rain and unexpected loss and interruption of power from the national grid to the site. This has seen production of 2,170 tonnes since the recommencement of production in late October 2011 until the Christmas shutdown on 21 December 2011.

With the onset of drier weather and the delivery and installation of a back‐up generator in the third quarter it is expected that production will get back on track and will reach nameplate capacity early in the fourth quarter.

Feasibility Studies

The feasibility study looking at expanding the operation is underway with progress being made in the following areas:

• Resource definition – a 3,600m program of triple core diamond drilling commenced on 5 October 2011. This drilling is designed to upgrade a portion of the 55Mt inferred resource (as previously defined by Rio Tinto) to indicated and measured categories. Holes are drilled at a dip of 50 degrees and core recovery has been excellent. At 19 January 2012, 41 holes comprising 2,468 metres had been completed with the balance of 12 holes (760 metres) to be completed by early March 2012.

• The preliminary results have been very encouraging with excellent core recovery and wide zones of vermiculite being intersected regularly (see Appendix 1). The average width of drilling based on visual observation is approximately 35m. It should be noted that assay results are still outstanding.

• Regional geochemical soil sampling in the surrounding exploration leases has continued and this has led to the discovery of several new areas of vermiculite. Follow up percussion drilling has confirmed the presence of wide bands of vermiculite below the surface oxidation.

• Engineering studies – Johannesburg based process engineers LogiProc have been engaged to establish appropriate parameters for the sizing and process design of an expanded plant.

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

Vermiculite Sales

Sales from late October to the Christmas shut down were 1,173 tonnes with finished goods of 1,045 tonnes of vermiculite at 31 December 2011.

Pricing discussions have commenced with off‐take partner Dupré and an increase in the sale prices of low to mid teens (“% over current price”) is expected for the period from March 2012 until February 2013. Negotiations are expected to be concluded shortly.

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Triple core diamond drilling at Namekara

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Excellent core recovery

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

Appendix 1

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Drill hole summary to 31 December 2011.

Hole ID							Vermiculite – Visual Observation	Vermiculite – Visual Observation
			Survey
	GPS_X	GPS_Y	EOH (metres)	Elevation	Azimuth **(o) **	Dip **(o) **	From (metres)	To (metres)
ND19	639538	92896	90.00	1214	206	‐55	14.5	44.9
ND36	639692	92814	60.42	1219	26	‐55	12.1	47.5
ND39	639691	92809	103.08	1219	197	‐55	14.8	56.4
ND18	639481	92931	58.94	1211	206	‐55	18.8	55.7
ND11	639483	92934	53.04	1213	26	‐50	22.8	49.2
ND12	639540	92899	53.04	1214	26	‐55	12.5	49.3
ND32	639639	92731	61.49	1220	207	‐50	20.0	57.8
ND1	639641	92737	63.00	1220	26	‐50	17.6	63.0
ND41	639604	92643	67.89	1213	210	‐50	19.9	63.9
ND40	639605	92650	59.04	1215	30	‐50	14.1	54.6
ND14	639696	92645	62.00	1214	206	‐50	29.8	59.2
ND33	639698	92649	57.67	1214	26	‐50	26.2	54.5
ND26	639724	92741	58.7	1218	206	‐50	25.5	55.8
ND20	639725	92747	65.14	1219	26	‐50	19.5	62.4
ND15	639787	92811	50.87	1226	202	‐50	16.8	50.8
ND08	639789	92818	73.24	1227	22	‐50	17.3	71.3
ND44	639823	92940	56.30	1228	204	‐50	20.2	56.3
ND03	639824	92945	40.14	1223	24	‐50	None	None
ND07	639725	92912	71.04	1226	205	‐50	13.8	66.7
ND02	639728	92918	60.64	1223	27	‐50	14.4	57.7
ND06	639637	92957	50.04	1227	207	‐49	14.7	49.4
ND13	639677	92989	62.04	1224	26	‐50	None	None
ND05	639585	92978	47.64	1223	202	‐50	21.9	46.6
ND43	639585	92985	50.04	1223	22	‐52	None	None
ND37	639514	93028	57.24	1221	206	‐50	26.5	51.4
ND35	639515	93033	51.14	1222	27	‐50	23.8	56.0
ND29	639424	92837	67.94	1214	212	‐49	21.7	62.4
ND23	639423	92866	62.14	1215	42	‐50	8.1	56.7
ND30	639488	92798	58.94	1215	206	‐50	10.8	51.6
ND24	639489	92803	50.14	1215	26	‐50	13.3	36.4
ND25	639550	92748	59.09	1216	26	‐51	21.9	56.2
ND38	639532	92708	70.89	1217	206	‐50	16.9	64.1
ND31	639534	92719	62.02	1214	26	‐50	21.7	52.3
ND42	639508	92639	65.14	1212	26	‐50	14.4	53.7

Assay Results

The assay results are still outstanding and will be reported once received.

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

Exploration

Elsewhere in the mining lease and extending into adjacent exploration licenses, a geochemistry/soil sampling program has commenced with activities concentrated on areas considered as anomalous in earlier work.

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Figure 1A:
Soil sampling coverage
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Although the program was designed to confirm the presence of anomalous copper, iron and titanium it has also identified several new areas of vermiculite in agricultural land and near‐surface diggings. Several of these have been drill‐tested using a percussion rig with, four wildcat holes each producing wide intersections of vermiculite as indicated in Fig 1B.

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Figure 1B:
New Vermiculite showings
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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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Core from drilling

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The results of triple core drilling

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.

FURTHER INFORMATION

Mark Arnesen, Acting 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