CAZALY RESOURCES LIMITED — Capital/Financing Update 2008

Apr 13, 2008

N O R T H E R N M I N I N G L I M I T E D

EXTENDED RC DRILL PROGRAMME TO COMMENCE ON THE HIGHLY PROSPECTIVE BLAIR NORTH PROJECT

Previous gold values up to 22.93g/t in reverse circulation drilling

EAST KALGOORLIE PROJECT – WESTERN AUSTRALIA

BLAIR NORTH PROSPECT E25/268

(Northern Mining earning 75%, Cazaly Resources 25%)

The Board of Northern Mining Limited is pleased to report that a 3,750 metre reverse circulation (RC) drilling campaign is scheduled to commence early May, on E25/268, Blair North, 30km southeast of Kalgoorlie, Western Australia.

The programme will focus on three main targets highlighted by the exciting results returned from the previous programme (see ASX release 20 March 2008) with the aim of extending the zone of mineralisation along strike and up/down dip from the previous intercepts.

Previously reported best intercepts:

Hole BNRC010

25 metres downhole* (from 99m to 124m) @ 4.05g/t Au, including internal high grade zones of 10m (from 107m to 117m) @ 8.39g/t Au.

Hole BNRC017

24 metres downhole* (from 36m to 60m) @ 2.16g/t Au, including an internal high grade zone of 8m (from 37m to 45m) @ 5.64g/t Au.

The programme has been designed with the objective of defining a significant zone of gold mineralisation. It was designed by and will be supervised by, Newexco Services Pty Ltd (Newexco).

Note * These are single hole intercepts into different mineralised occurrences and as such it is not possible to determine the orientation of the holes to the mineralisation. No meaningful, true width estimates of the mineralisation can therefore be made at this stage, as the attitude of the mineralised body is not known.

SNAKE HILL PROSPECT– BLAIR NORTH PROJECT

(Northern Mining earning 75%, Cazaly Resources 25%)

An initial 300m RC drill programme will also be undertaken on the Snake Hill prospect within the Blair North Project area, located 25km southeast of Kalgoorlie, Western Australia. The programme has been designed by, and will be supervised by, Newexco Services Pty Ltd (Newexco) and will focus around historic drilling that has had minimal follow-up work.

HAKE PROSPECT – PERKOLILLI PROJECT

(Northern Mining earning 75%, Cazaly Resources 25%)

As well, an initial 420m RC drill programme will be carried out at the Hake prospect within the Perkolilli Project area, located approximately 20kms east of Kalgoorlie, Western Australia. This programme will also focus around historic drilling (previous best intercept 1m @ 23.45g/t Au) and workings which have had minimal follow-up work undertaken in the past.

The programme has also been designed by, and will be supervised by, Newexco Services Pty Ltd (Newexco).

Programmes of works on all three areas have been lodged with DOIR.

PO Box 1007, Scarborough WA 6922 : Suite 24, Level 3, 25 Walters Drive Osborne Park WA 6016 Email admin@northernmining.com.au : Website www.northernmining.com.au Telephone (08) 9244 8499 : Facsimile (08) 9244 3166 ABN: 30 113 654 229 : ACN: 113 654 229

Commenting on the upcoming programme, Executive Chairman Alan Lockett said: “ Whilst Blair North is obviously our major focus at this time, the Board still feel very strongly About the excellent exploration potential of our other prospects in this area. These programmes provide for the next step in the evolution of our East Kalgoorlie project area.”

CRAIG DAWSON

CHIEF EXECUTIVE OFFICER

==> picture [502 x 486] intentionally omitted <==

----- Start of picture text ----- RC drill samples at E25/268E25/268Figure 1: East Kalgoorlie ProjectTenement Location----- End of picture text -----

Information in this announcement that relates to Exploration Results is based on information compiled by Adrian Black, Newexco Consulting Geologist, who has sufficient experience which is relevant to this style of mineralization 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”. Adrian Black as an independent consultant to Northern Mining Limited and is a member of the Australasian Institute of Geologists and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears .

PO Box 1007, Scarborough WA 6922 : Suite 24, Level 3, 25 Walters Drive Osborne Park WA 6016 Email admin@northernmining.com.au : Website www.northernmining.com.au Telephone (08) 9244 8499 : Facsimile (08) 9244 3166 ABN: 30 113 654 229 : ACN: 113 654 229