CAZALY RESOURCES LIMITED — Capital/Financing Update 2009

Jul 5, 2009

==> picture [212 x 97] intentionally omitted <==

6 July 2009

ASX Release

ALLOTMENT OF SHORTFALL OF NON-RENOUNCEABLE ENTITLEMENT ISSUE

The Directors of Cazaly Resources Limited are pleased to announce that the Company has placed part of the Shortfall Securities from its recent Non-Renounceable Entitlement Issue offered pursuant to the Prospectus lodged on 11 May 2009. 1,577,940 Shares at an issue price of $0.165 each, along with 788,971 free attaching Listed Options, have been issued today. Following this placing the Company now has 85,554,544 Ordinary Shares on issue.

The Directors intend to place the remainder of the shortfall in accordance with Section 1.9 of the Prospectus.

Yours sincerely,

==> picture [128 x 73] intentionally omitted <==

==> picture [163 x 69] intentionally omitted <==

Nathan McMahon Managing Director

Clive Jones Managing Director

For further information please contact:

Nathan McMahon or Clive Jones (Joint Managing Directors)

Ph: +618 9380 4600 admin@cazalyresources.com.au

Level 1, 22 Oxford Close, West Leederville WA 6007 PO Box 396, West Perth WA 6872

Telephone: (08) 9380 4600 Fax: (08) 9381 5911 Web: www.cazalyresources.com.au