CAZALY RESOURCES LIMITED — Capital/Financing Update 2004

Jan 29, 2004

30 January 2004

By ASX Online

Pages: 1

Dear Sir/Madam

Shortfall to Entitlements Issue

The Directors of Cazaly Resources Limited are pleased to announce that the Non-Renounceable Entitlements Issue pursuant to the Prospectus issued 18 December 2003 is closed. The Company advises that the shortfall of the issue is 1,393,993 options.

Yours faithfully

$\frac{1}{\sqrt{2}}$

Kent Hunter Director

ABN: 23 101 049 334 - L1/22 Oxford Close Leederville WA 6007

Ph: 9380 4600 - Fx: 9381 5911 www.cazalyresources.com.au