CAZALY RESOURCES LIMITED — Capital/Financing Update 2009

Aug 20, 2009

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21 August 2009

The Manager Company Announcements Office Australian Securities Exchange Ltd.

Mick Adam/Wadi Gold Heap Leach Project Farm In and JV Agreement Finalised

Waratah Gold Ltd (ASX:WGO) and Hayes Mining Pty Ltd, a wholly owned subsidiary of Cazaly Resources Ltd (ASX:CAZ) are pleased to announce that the Farm In and JV Agreement for the Mick Adam/Wadi gold project has been finalized.

The Mick Adam and Wadi gold deposits are located in the Western Australia’s goldfields region and provide Waratah and Cazaly with a mine development opportunity with an excellent potential of delivering near-term revenues for the companies.

Previous metallurgical testwork has indicated that the deposits are amenable to a low cost heap leach process route with favourable recoveries. It is considered that heap leaching offers many advantages over traditional processing for this project. Heap leaching is a low capital cost option with short timeframes for production of gold. It is the intention of Waratah to move toward production in a timely manner to capitalise on strong gold prices.

Under the terms of the formal Farm In and JV agreement Waratah will earn a 50% interest in the project by meeting all annual rents, rates and expenditure over a two year period. Waratah will also be deemed to have earned their interest prior to the two year period when commercial production of minerals through mining operations commence.

Waratah is required to complete a scoping study and mining proposal within 4 months of signing of the agreement. Waratah is pleased to report that the release of the results of the scoping study is imminent. Under the agreement a decision to mine is required within 12 months of the completion of the scoping study. A $50,000 payment will be made to Cazaly once a decision to mine has been made.

Waratah is the manager of the project and will meet all expenses associated with the project. All expenses will be repaid to Waratah prior to profits being shared on a 50/50 basis between Waratah and Cazaly. Waratah will retain their share of mineral rights over the project area for a period of five years and retains a right to withdraw from the project at any point after paying a pro rata share of expenditure obligations.

Waratah’s managing director, Mr Andrew Maurice stated: “Waratah is pleased to conclude this transaction and move toward becoming a gold producer in a relatively short timeframe in a period of historically high gold prices. We look forward to providing the market with the results of the scoping study in the near future.”

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For further information contact:

Andrew Maurice Managing Director +61 8 6365 4532

www.waratahgold.com.au amaurice@waratahgold.com.au

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr J Downes, B.Sc (Geol), MAIG a director of Waratah Gold Limited. Mr Downes has sufficient experience that is relevant to 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 Downes consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

About Waratah Gold Ltd

Waratah Gold Ltd (ASX:WGO) is a specialist gold exploration and development company which seeks to build shareholder wealth through the aggressive and efficient development of its gold projects.

Waratah will also continue to actively expand the projects controlled by the Company with the identification of near mine development opportunities in Australia and overseas.

The Company's Directors and Management possess a very strong technical background in the mineral exploration and mining industry as well as excellent commercial and corporate skills.

Waratah Gold Ltd listed on the ASX on 17th July 2008 and has an excellent capital structure with only 22,500,100 shares on issue. At the end of the June quarter Waratah had $2,869,000 cash and no debt.

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