CAZALY RESOURCES LIMITED — Capital/Financing Update 2005

Apr 12, 2005

CAZALY RESOURCES LIMITED - RETURN OF CAPITAL

Participating Organisations are advised that the return of capital in Cazaly Resources Limited (the "Company") will become effective on Friday, 15 April 2005.

The return of capital is by way of an in specie distribution of 10,000,000 fully paid ordinary shares in Graynic Metals Ltd ("Graynic"). The distribution is on the basis of one Graynic share for every 4 shares held in the Company.

Fractions will be disregarded.

The following timetable will apply.

12 April 2005	Shareholder approval
15 April 2005	Trading in securities commences on an "ex return of capital" basis.
	ASX Code: CAZ
21 April 2005	Record date for identifying shareholders entitled to participate in the return of capital.
To be advised - will not occur until after the initial public offering of Graynic is closed	Despatch date for Graynic shares

ASX Contact:	Christine Panetta
Business Unit	Companies Perth
Ext.No:	6014
Date:	13 April 2005

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