CAZALY RESOURCES LIMITED — Capital/Financing Update 2009

Apr 19, 2009

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20[th] April 2009

The Manager Company Announcements Office Australian Securities Exchange Ltd.

Waratah Gold Acquires Gold Production Opportunity

Key points

• Waratah announces letter of intent for farm-in and joint venture with Cazaly Resources to develop Mick Adam and Wadi Gold Deposits in WA’s Goldfields region

• Waratah to earn 50% stake in project

• Profits to be divided equally after project capital is repaid

• Project represents an excellent near-term gold production opportunity

• Aim is to have scoping study completed in 4 months of signing farm-in agreement and decision to mine to be made in 12 months of completion of scoping study

• Deposits amenable to a low capital and operating cost heap leach operation with favorable recoveries

• Mick Adam has inferred resource of 4,510,000 tonnes at 1.27g/t for 184,100oz Au, Wadi has inferred resource of 849,000 tonnes at 1.53g/t for 41,900oz Au. Total resource in project area is 226,000oz Au

Gold exploration and development company Waratah Gold Limited (ASX: WGO) (Waratah) is pleased to announce it has signed a letter of intent for a farm-in and joint venture agreement with Cazaly Resources Limited (ASX: CAZ)(Cazaly) to develop the Mick Adam and Wadi Gold Deposits in Western Australia’s Goldfields region.

Under the terms of the agreement Waratah will earn a 50% stake in the project from Cazaly by meeting all rents, rates and expenditure commitments as well as meeting other development milestones. Profits from operations will be divided equally once project capital has been repaid.

The overall objective of entering into the agreement with Cazaly is to capitalize on the short term mine development opportunities which are available in the project area. Waratah has taken into consideration the positive outlook for the gold price in arriving at the decision to proceed with this near-production mine development opportunity, and believes it represents an excellent opportunity to deliver near-term revenues for the Company.

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Waratah intends to have a scoping level study completed within 4 months of signing the formal farm in agreement with Cazaly. A decision to mine will be made within 12 months of completion of the scoping study. Waratah will proceed as fast as prudently possible to capitalize on a strong gold price.

The projects have previously been reviewed for development and at current gold prices, above A$1000 per ounce, they now provide a compelling case for production.

The Deposits are located 40km west of Kalgoorlie. The Mick Adam deposit has an inferred resource of 4,510,000 tonnes at 1.27g/t for 184,100 oz of gold. Wadi has an inferred resource of 849,000 tonnes at 1.53g/t for 41,900 oz of gold, and also has a measured resource of 240,000 tonnes at 2.11g/t. The total resource in the project area is 226,000 oz of gold (Please refer to Table 1, attached, for a breakdown of the Deposits’ JORC resources). The majority of resources are on granted mining leases.

Engineering and metallurgical studies, undertaken on the project area, have indicated the deposits are amenable to heap leaching with favorable recoveries. Waratah considers that heap leaching offers many advantages over traditional processing for this project and will mean a relatively low capital expenditure requirement and low operating costs.

Waratah’s managing director, Mr Andrew Maurice stated: “The Mick Adam and Wadi Farm-In and Joint Venture meets Waratah’s strategy to obtain an asset with near-mine production potential at a time of historically high gold prices. Waratah is excited by the prospect of becoming a gold producer in a relatively short period of time. Waratah is also seeking other advanced projects with short term mine development options both in Australian and overseas”

Keys Terms of the letter of intent include

1. Waratah will pay Cazaly a $50,000 opportunity payment within 4 weeks of signing of the letter of intent. A formal Farm In agreement is expected to be finalized within 2 months.

2. Waratah will earn a 50% interest in the project by meeting all annual rents, rates and expenditure commitments over a two year period.

3. Waratah will complete a scoping level study and will lodge a mining proposal, subject to regulatory approvals, within 4 months of signing a formal Farm In agreement.

4. Waratah will make a decision to mine within 12 months of the scoping studies completion.

5. Waratah will pay Cazaly $50,000 once a decision to mine has been made.

6. Waratah will manage the project and meet all expenses associated with the project. All expenses will be recouped before sharing positive operating cash flows with Cazaly on a 50/50 basis.

7. Waratah will retain an interest over the project area for a period of 5 years and may elect to withdraw from the Farm In agreement at any point after paying a pro rata share of expenditure obligations.

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The advantages of heap leaching

Heap leaching of gold has been around for hundreds of years and has been successfully applied worldwide. It is one of several processing methods used for treating gold bearing ores. Yanacocha in Peru, one of the worlds largest goldmines, Telfer and St Ives in Western Australia along with many small private prospector operations utilize the heap leach processing route.

Heap leaching is a simple process which involves the stacking of ore on a prepared surface which has been lined with an impermeable membrane. This “heap” is then irrigated with a solution of weak cyanide. The solution percolates through the heap and dissolves (leaches) the gold. The solution is then recovered and the gold is extracted from the solution. Whilst a simple process it is imperative that thorough testing and design work be undertaken to minimise risk. Waratah will ensure that the appropriate test work and studies are undertaking prior to the decision to mine.

Heap leaching is primarily chosen to take advantage of the relatively low capital expenditure required for getting a mine into production. It also does not require expensive processing plants. A heap leaching operation is scalable and as such can be established relatively quickly and typically has lower operating costs than traditional processing methods.

ENDS

For further information contact:

Andrew Maurice	James Moses
Managing Director	Mandate Corporate
+61 8 6365 4532	+ 61 2 8012 7702
www.waratahgold.com.au	+ 61 420 991 574 (m)
amaurice@waratahgold.com.au	james@mandatecorporate.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.

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Table 1

Mineral Resources – Mick Adam and Wadi Deposits

	Measured	Measured	Indicated	Indicated	Inferred	Inferred	Total	Total	Total
Prospect	Tonnes	Grade g/t	Tonnes	Grade g/t	Tonnes	Grade g/t	Tonnes	Grade g/t	Oz Au
Mick Adam					4,510,000	1.27	4,510,000	1.27	184,200
Wadi	240,000	2.11	344,000	1.35	265,000	1.25	849,000	1.53	41,900
TOTALS	240,000	2.11	344,000	1.35	4,775,000	1.27	5,359,000	1.31	226,100

Resources are quoted using a 0.8g/t cut-off grade. Rounding errors may occur – grades to 2 significant digits in this table.

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 Gold will 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 March quarter Waratah had $3,064,000 cash and no debt.

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