CAZALY RESOURCES LIMITED — Capital/Financing Update 2007

Jul 16, 2007

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17[th] July 2007

ASX Release

PROPOSED PLACEMENT OF SHARES

The Board of Cazaly Resources Limited (ASX Code: CAZ) are pleased to announce a placement of up to 5,750,000 new ordinary shares in the Company to a range of institutional investors.

The placement is pursuant to Section 708 of the Corporations Act and is at a price of $0.60 to raise up to $3,450,000.

The funds raised under this Placement are intended to be used to provide for continued exploration and to fund working capital.

Further information required by Listing Rule 3.10.3 in relation to the placement accompanies this announcement.

Yours sincerely,

Nathan McMahon

Managing Director

LISTING RULE 3.10.3 INFORMATION

In accordance with Listing Rule 3.10.3, Cazaly Resources Ltd provides the following details of the placement of shares:

Class of Security	Fully paid ordinary shares
Number to be issued	5,750,000
Principal terms of securities	The shares will carry standard rights applicable to ordinaryshares in Cazaly Resources Ltd and will, from the date of issuerank equally with fully paid ordinary shares currently on issue.
Issue price	$0.60
Shareholder approval	Cazaly Resources Ltd will not seek shareholder approval priorto the issue of the shares and will rely on its capacity underListing Rule 7.1
Issue to Class	The issue is not being made to a class of security holders.

Level 1, 22 Oxford Close, West Leederville WA 6007 PO Box 396, West Perth WA 6872

Telephone: (08) 9380 4600 Fax: (08) 9381 5911 Web: www.cazalyresources.com.au