CAZALY RESOURCES LIMITED — Capital/Financing Update 2008

Feb 20, 2008

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21[st] February 2008

ASX Release

EXPIRY OF OPTIONS

Cazaly Resources Limited (ASX Code: CAZ) advises that the 5,000,000 options granted as consideration to Echelon Resources Limited option holders have expired. The options were granted in consideration for Echelon to provide technical capabilities and fund a drilling program on the Shovelanna Iron Ore Project and were exercisable at 94.36 cents on or before 31 December 2007.

For further information, please call Clive Jones on 0407775312 or Nathan McMahon on 0411 124 542.

Yours faithfully CAZALY RESOURCES LIMITED

Yours faithfully,

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Nathan McMahon Joint Managing Director

Clive Jones Joint Managing Director