CAZALY RESOURCES LIMITED — Capital/Financing Update 2005

Oct 11, 2005

12 October 2005

FOR IMMEDIATE RELEASE TO THE MARKET

Notice under Section 708A

Cazaly Resources Limited (Company) issued 1,000,000 shares to Echelon Resources Limited (Echelon) on 12 October 2005. The securities are part of a class of securities quoted on the Australian Stock Exchange Limited (ASX).

The Company gives this notice pursuant to Section 708A(5)(e) of the Corporations Act.

The shares were issued without disclosure to Echelon under Part 6D.2, in reliance on Section 708A(5) of the Corporations Act.

The Company, as at the date of this notice, has complied with:

• a) the provisions of Chapter 2M of the Corporations Act; and
• b) Section 674 of the Corporations Act.

There is no excluded information as at the date of this notice, for the purposes of Sections 708A(7) and (8) of the Corporations Act.

Yours faithfully

Kent Hunter Director

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

Phone: 9380 4600 - Fax: 9381 5911 www.cazalyresources.com.au