CAZALY RESOURCES LIMITED — Capital/Financing Update 2009

Sep 20, 2009

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

DRILLING COMMENCES AT BLAIR NORTH PROSPECT

BLAIR NORTH PROSPECT E25/268, EAST KALGOORLIE PROJECT – WESTERN AUSTRALIA

(Northern Mining Ltd earning 51%, Balagundi Gold Pty Ltd earning 24%, Cazaly Resources Ltd holding 25%)

A 5,000 metre rotary air blast (RAB) drilling programme has commenced at Blair North. The programme is designed to follow up the highly prospective Northern Zone with the objective of generating further gold targets that warrant testing at depth by RC drilling at a later date (Figure 1). It will also test nickel and gold soil anomalies generated by the recent auger soil sampling programme.

==> picture [503 x 277] intentionally omitted <==

----- Start of picture text ----- Figure 1: E25/268Northern Zone----- End of picture text -----

Following the RAB programme, a reverse circulation programme of over 1,000 metres will test shallow and deep targets at George’s Reward (previously known as the Southern Zone) with the objective of extending the high grade, gold mineralised zones in a southerly and westerly direction (Figure 2).

PREVIOUS RESULTS – GEORGE’S REWARD (SOUTHERN ZONE)

April RC Drilling Programme

23m @ 2.43g/t Au from 6m to 29m within 5m of surface including 9m @ 4.80g/t and 3m @ 10.00g/t Au

26m @ 2.13g/t Au from 25m to 51m including 7m @ 6.37g/t Au

June RC Drilling Programme

42 metre shallow, gold extension: 42m @ 2.72g/t Au from 32 to 74 metres

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

Including high grade intersections

2m @ 15.14g/t Au

• 8m @ 6.64g/t Au

• Coarse, free gold open to the north, south, west and at depth

• Along strike continuity of gold shoots

==> picture [510 x 436] intentionally omitted <==

----- Start of picture text ----- Figure 2: E25/268George’s Reward(formerly Southern Zone)Executive Chairman----- End of picture text -----

==> picture [99 x 20] intentionally omitted <==

----- Start of picture text ----- Alan LockettExecutive Chairman----- 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 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 is a NonExecutive Director of Northern Mining Limited and is a member of the Australasian Institute of Geologists. He consents to the inclusion in the report of the matters based on the information in the form and context in which it appears . Newexco, through its associated company Skryne Hill Pty Ltd, owns 5.5 million shares and 4.85 million options in Northern Mining Limited. Adrian is also a Director of Balagundi Gold Pty Ltd, Farminor to the East Kalgoorlie Project. Balagundi may earn a 24% interest in the Project by collectively completing 7,346 metres of reverse circulation (RC) and diamond drilling with Northern Mining Limited before December 2010.

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