CAZALY RESOURCES LIMITED — Capital/Financing Update 2009

May 10, 2009

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11 May 2009 ASX Release

NON RENOUNCEABLE PRO RATA OFFER OF SHARES

The Directors of Cazaly Resources Limited have resolved that the Company will make a pro rata non-renounceable offer of up to 21,739,960 shares at an issue price of 16.5 cents per share (New Shares) with one free attaching option for every two New Shares issued exercisable at twenty (20) cents on or before 28 February 2011 (New Options).

The Offer will be made to Cazaly Resources shareholders on a basis of one (1) New Share for every three (3) Shares held at 5.00pm WST on 22 May 2009 (Record Date).

All holders of ordinary shares in the Company are entitled to participate in the Offer. Optionholders who exercise their Options after the date of the Prospectus but prior to the Record Date are entitled to participate in the Offer.

The ASX has previously approved the timetable for the non-renounceable pro-rata offer of New Shares and New Options by the Company. The Company is pleased to announce the important dates for the offer are as follows:

Lodgement of Prospectus	11 May2009
‘Ex’ Date	18 May2009
Record Date	22 May2009
Acceptance closes at 5pm WST	12June2009

Applicants should consult their brokers or professional advisors in regards to the definition of ‘Ex’ Date and Record Date to ensure that their entitlement to participate in the offer is assured.

The Company intends to lodge a Prospectus for the Offer at the Australian Securities & Investment Commission on or before 11 May 2009. The Prospectus will be mailed to each shareholder registered in the share register on the Record Date. Each shareholder’s entitlement under the Offer will be set out in the Entitlement and Acceptance Form that will accompany the Prospectus.

The Company will apply for official quotation of the New Shares and New Options issued under the Prospectus.

Yours sincerely

Nathan McMahon Managing Director