CAZALY RESOURCES LIMITED — Capital/Financing Update 2009

May 25, 2009

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25 May 2009 ASX Release

DESPATCH OF NON-RENOUNCEABLE PRO RATA OFFER

PROSPECTUS

The Company is pleased to announce the despatch today, 25 May 2009, of the Prospectus for the pro rata non-renounceable offer of up to 21,739,960 shares at an issue price of 16.5 cents per share with a free attaching option for every two new shares issued exercisable at 20 cents on or before 28 February 2011 as outlined to ASX on 11 May 2009.

Acceptance for the non-renounceable pro rata offer of shares will close at 5pm WST on 12 June 2009.

Applicants should consult their brokers or professional advisors in regards to undertaking an investment in the offer.

Yours sincerely

Nathan McMahon Managing Director

Clive Jones Managing Director