CAZALY RESOURCES LIMITED — Capital/Financing Update 2009

Aug 23, 2009

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ASX Release 24 August 2009

Cazaly engage Lycopodium to undertake Parker Range Iron Ore PFS

Highlights;

• Lycopodium Minerals engaged to complete Parker Range PFS

• Highly experienced engineering team assigned to study

• PFS report expected to confirm positive business case by December 2009

• Parker Range continues to develop in line with company expectations

Australian diversified resources company Cazaly Resources Limited (ASX: CAZ) (“Cazaly” or “the company ”) continues to progress development activities associated with the Parker Range Iron Ore Project, located in the Yilgarn district of Western Australia, with the company engaging Lycopodium Minerals Pty Ltd (“Lycopodium”) to complete Pre-Feasibility Study.

Lycopodium have a current background of iron ore projects in Western Australia, having recently completed numerous studies and projects in the industry. Lycopodium has compiled a highly experienced team to complete the study, with extensive process design, materials handling, road haulage, rail and port logistics capability.

Lycopodium’s current iron ore clients include Rio Tinto, Hancock Prospecting and Fortescue Metals Group.

Cazaly are pleased to have secured the services of Lycopodium, who have an excellent reputation and strong bankability within the engineering community both domestically and overseas.

The Pre-Feasibility Study for the Parker Range Project is underway, with the preferred positive business case and study report due for completion by December 2009.

For further information please contact:

Nathan McMahon/ Clive Jones David Tasker Joint Managing Directors Cazaly Resources Limited Professional Public Relations Tel: +618 9380 4600 Tel: +618 9388 0944/ +61 433 112 936 Em: admin@cazalyresources.com.au Em: david.tasker@ppr.com.au

Website: www.cazalyresources.com.au

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