CAZALY RESOURCES LIMITED — Capital/Financing Update 2003

Oct 28, 2003

Cazaly Resources Limited ACN: 101 049 334

Prospectus Dated 14 October 2003 - Offer Fully Oversubscribed

STATEMENT OF FINANCIAL POSITION AND PRO-FORMA STATEMENT OF FINANCIAL POSITION

	Note	Unaudited 8 October 2003	Pro-forma 8 October 2003
CURRENT ASSETS
Cash		222,918	3,543,173
Other		17	17
Deferred Share Issue Costs		3,000
TOTAL CURRENT ASSETS		225,935	3,543,190
NON CURRENT ASSETS
Exploration expenditure		32,566	731,311
TOTAL NON CURRENT ASSETS		32,566	731,311
TOTAL ASSETS		258,501	4,274,501
NET ASSETS		258,501	4,274,501
EQUITY
Contributed Equity		258,650	4,274,650
Accumulated Losses		(149)	(149)
TOTAL EQUITY		258,501	4,274,501

The statement of financial position as at 8 October 2003 is in accordance with the Company's unaudited financial position at that date. The pro-forma statement of financial position at 8 October 2003 represents the unaudited financial position as at that date adjusted for the transactions discussed in Note 2 of Appendix 2 to the Investigating Accountant's Report included in Section 6 of the Prospectus dated 14 Octrober 2003 and amended for the following:

• $(i)$ Receipt of oversubscriptions of \$500,000;
• Issue and allotment of a further 2,500,000 Ordinary fully paid shares in accordance with $(ii)$ acceptance of oversubscriptions; and
• Payment of an additional \$25,000 in issue costs associated with broker fees for the raising of $(iii)$ the oversubscriptions.