CAZALY RESOURCES LIMITED — Capital/Financing Update 2005

Mar 30, 2005

31^st March 2005 ASX Release

DRAKE RESOURCES LTD SET TO LIST ON ASX

Cazaly Resources Limited (ASX Code: CAZ) wish to congratulate Drake Resources Ltd (ASX Code: DRK) on its successful closing of their IPO and impending listing on the Australian Stock Exchange. Drake raised \$3.0 million and issued 15,000,000 shares at \$0.20. Drake are due to list on the ASX at 10.00am WST today, Thursday 31^st March 2005.

Cazaly Resources Ltd has vended the Mt. Carrington project to Drake. The terms of the Agreements involve Cazaly retaining a free-carried 10% interest as well as receiving consideration of \$150,000 cash and 4,500,000 fully paid shares in Drake Resources Ltd.

Cazaly considers that Drake has a proven exploration team with a strong track record of discovery that will aggressively advance the Mt. Carrington project which will be one of their major focuses and subject to an intensive exploration program immediately upon listing. The team is led by Dr. Bob Beeson, who has extensive global exploration experience with Billiton, Acacia Resources and North Limited.

The Mount Carrington project is a polymetallic (primarily gold and silver) project situated within the north-central part of the New England Fold belt in the northern goldfields of New South Wales. The project has a long history of mining. During the 1980s, open-cut gold mining operations were undertaken, with mining ceasing in 1990. The previous mining has only depleted the upper part of the resource.

Cazaly remains well funded with strong equity positions in and joint ventures with Great Australian Resources Ltd, Discovery Nickel Ltd., Scimitar Resources Ltd and Drake Resources Ltd. Importantly, Cazaly remains free-carried in these Agreements and there are drilling components in the majority of these Agreements.

The divestment of Mt. Carrington allows Cazaly shareholders exposure to a free-carried interest in the projects and equity in Drake whilst allowing Cazaly to continue aggressively exploring its key Kunanalling/West Kunanalling project and focus on the development of the Catherwood and Wadi deposits and further exploration of the Outridge prospect.

Yours sincerely,

Nathan McMahon

Managing Director

Information in this report pertaining to mineral resources and exploration results was compiled by Mr. C.B Jones 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.