CAZALY RESOURCES LIMITED — Capital/Financing Update 2004

Jun 8, 2004

GREAT AUSTRALIAN

RESOURCES LTD

www.greataustralian.com.au

ACN 106 874 917

9 June 2004

Australian Stock Exchange Company Announcements Office

Vla Facsimile

Great Australian Resources Ltd (GAU) Acquires Additional Prospective Land Holding at Menzies, WA from Cazaly Resources Ltd

The Company is pleased to announce that it has acquired new ground adjoining. its current Menzies project area, approximately 8km to the east of the Menzies town site, Western Australia.

The Company has entered into an agreement with Cazaly Resources Ltd over 12 prospecting licences, totalling over 2,000 hectares. The Company has the exclusive rights to earn 75% equity over the project area by carrying out 3,000 metres of drilling within 3 years (reverse circulation or diamond drilling).

As indicated by the results of the Company's recent drill results within its Menzies project the Company now holds approximately 4,000 hectares of highly prospective ground within its Menzies project area.

The Company's recent exploration, announced on the 26 May and 4 June 2004 delineated both gold and nickel intercepts. Nickel intercepts included 9m of 1.32% nickel (from 16m depth) and 5m of 0.95% nickel (from 29m) in hole CNRC 1.

Gold intercepts included 4m @ 3.29 g/t gold (from 12m), 6m @ 2.40 g/t gold (from 30m), 4m @ 2.84 g/t gold (from 28m) and 4m @ 2.21 g/t gold (from 84m).

The Directors believe that this acquisition is a good strategy as the Company now holds a reasonable amount of tenure (a total now of 27 licences) in the area and covers extensive strike potential from its recently delineated nickel intercepts.

4/611 Hay Street Jolimont WA 6014 PO Box 751 Wembley WA 6913

www.greataustralian.com.au

ACN 106 874 917

Yours sincerely

Tony Gates Managing Director

Information in this report pertaining to mineral resources and exploration results was compiled by Mr. J Comelius who is a Member of the Aus.i.M.M with not less than 5 years experience in the relevant fields, and who consents to the report appearing in the form and context in which it appears.

4/611 Hay Street Jolimont WA 6014 PO Box 751 Wembley WA 6913