CAZALY RESOURCES LIMITED — Capital/Financing Update 2008

Apr 22, 2008

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April 23, 2008

Poseidon and Proto form Joint Venture to explore at Menzies Nickel Project

ASX Release Stock Code: PRW

Poseidon Nickel Limited (“Poseidon Nickel”) and Proto Resources & Investments Ltd (“Proto”) are pleased to announce that they have executed a Heads of Agreement to form a Joint Venture with the aim of defining and developing a mineable nickel resource at the Menzies Nickel Project.

The Menzies Nickel Project is a multi-commodity advanced exploration project including nickel laterite, nickel sulphide, cobalt and gold, previously worked by BHP. The Project is located approximately 130 km north of Kalgoorlie in Western Australia. Proto currently holds the Project in Joint Venture with Cazaly Resources Ltd (“Cazaly”), holding 90% of the nickel laterite rights, 50% of the nickel sulphide rights, and 70% of the gold rights.

Poseidon Nickel is initially joint venturing in on Proto’s nickel laterite interest in the Menzies Project. Poseidon Nickel and Proto shall contribute in equal shares to the Joint Venture and shall each finance their share into production. Cazaly will continue to hold its interests and will be free carried to completion of a bankable feasibility study.

Poseidon Nickel is planning to build a nickel sulphide concentrator plant at its Windarra Nickel Project and believes that the Menzies project is within economical trucking distance to this facility should sulphide ore be discovered during exploration.

Proto is currently planning to develop the Barnes Hill nickel laterite project in Tasmania and is seeking additional laterite discoveries for development. The majority of the world’s resources are in laterite ore bodies, hence Proto’s focus on lateritic nickel for production of downstream nickel products.

Substantial nickel intersections known from prior drilling at Menzies and repeated by Proto in 2008 include:

• Historical MZR01: 8m @ 1.21% Ni & 0.073% Co (from 20m to 28m) 22 October 2004 Repeated MZR01: 11m @ 1.16% Ni and 0.07% Co, inc. 7m @ 1.39% Ni and 0.08% Co (18 to 25m)

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• Historical MZR02: 4m @ 1.00% Ni & 0.052% Co (From 20m to 24m) 22 October 2004 Repeated MZR02: 5m @ 1.00% Ni & 0.04% Co (from 19 to 24m)

• Historical MZR04: 12m @ 1.72% Ni & 0.127% Co (From 16m to 28m) 22 October 2004 Repeated MZR04: 14m @ 1.72% Ni and 0.13% Co, inc. 12m @ 1.92% Ni and 0.14% Co (16 to 27m)

• Historical MZR05: 4m @ 1.40% Ni & 0.068% Co (From 32m to 36m) 22 October 2004 Repeated MZR05: 7m @ 1.28% Ni & 0.063% Co (from 30 to 37m)

(Historical - Great Australia Resources Limited, GAU; Repeated – re-sampling by Proto 2008)

The Menzies area has nickel laterite mineralisation confirmed in historical drilling as above. The area also has significant potential for Yilgarn-styled gold and also komatiite/ultramafic hosted/related nickel sulphides.

The Parties plan to develop mineable laterite and sulphide nickel resources for the benefit of the shareholders. The Parties will now develop and undertake the next stage of the exploration programme with the initial intent of following up on the mineralisation already identified. The programme will involve extending geochemical coverage and embarking on an aggressive drill program aimed at extending known nickel mineralisation, with a view to defining an inferred resource. The Parties also plan to collect airborne electromagnetics (VTEM) in the project area to target nickel sulphides and assist basement interpretation.

Menzies Project - Geology and History

The Menzies Project consists of 36 tenements in a continuous block located just 10km south of the township of Menzies, approximately 13 km north of Kalgoorlie. Proto holds the project in joint venture with Cazaly Resources Ltd.

The project has potential to host nickel laterite mineralisation confirmed in historical drilling. The area also has significant potential for Yilgarn styled gold and also komatite/ultramafic hosted/related nickel sulphides. Historical work has not only defined potential for nickel laterite but also the presence of nickel sulphides and gold in the Cigar and Heron prospects (GSR 1996).

The project is located in the central portion of the Norseman Wiluna Greenstone belt within the eastern goldfields province of the Archaean Yilgarn Craton of Western Australia. The Norseman Wiluna Greenstone belt is a deformed and metamorphosed volcano-sedimentry sequence of approximately 2690 Ma comprising of a lower succession of komatites, tholeeiitc intrusions and volcanic igneous rocks with subordinate shale unites and an upper succession of felsic, tholeiitic to calc alkaline volcanic rocks and related sediments. Locally at Menzies there are multiple phases of deformation focused along the Menzies shear zone which underlies the project. The geology is metamorphed to lower amphibolite facies, with higher grade zones generally related to granitoid bodies and discrete shear zones.

Previous exploration includes work by BHP Exploration Ltd in mid 1980’s where shallow RAB drilling defined the Cepline prospect (GSWA Report A19326). From 1994 to 2000 Dalrymple NL and Golden States Resources Ltd completed an extensive soil geochemistry program. They also carried out follow up vacuum drilling of gold arsenic anomalies, leading to the definition of the Cigar gold prospect. Most recently Great Australian Resources Ltd (GAU) completed two small drill programs and an orientation EM survey.

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The information in this report that relates to Exploration Results is based on information compiled by Andrew Johnstone who is a Fellow of the Financial Services Institute of Australasia, members of both the Australian and American Societies of Exploration Geophysicists, and member of the Australasian Institute of Geoscientists (AIG). Mr Johnstone provides exploration management services to Proto Resources & Investments Ltd. Mr Johnstone has extensive qualifications and experience in the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Johnstone consents to the inclusion in the report of the matters based on information provided by him and in the form and context in which it appears.

For further information please contact:

Andrew Mortimer Chairman and Managing Director Proto Resources & Investments Ltd Phone: +61 (2) 9225 4000 Fax: +61 (2) 9232 5359 Mobile: +61 (0)433 894 923

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