CAZALY RESOURCES LIMITED — Capital/Financing Update 2011

Apr 19, 2011

April 20, 2011

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ASX RELEASE

Huckitta Project Update - Second Drill Rig Commences

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• A second drill rig is on-site and will test regional copper, gold and nickel targets on the Huckitta Project

• Drilling at the Basil Prospect that commenced earlier in the month is progressing well and results will be released to market on receipt of assay results

• Regional mapping programs continue to identify new mineralisation at surface and a large iron-oxide, fluorite alteration system has been mapped south of Basil

• Gravity, electromagnetic and geochemical surveys are underway across a number of targets

Base metals explorer Mithril Resources Ltd ( ASX:MTH ) is pleased to advise that a second drill rig has commenced work on the Huckitta Project. This rig is currently testing regional targets outside of the Basil Prospect where diamond drilling focussing on the Basil mineralised trend commenced earlier this month. Drilling at Basil is progressing well and results will be released to market when assay results are available.

The regional drilling program comprises 8000m of shallow aircore and reverse circulation percussion holes over 22 regional targets. These targets include the Tibbs and Percy gold targets, the Hammerhead and Baldrick nickel targets and geophysical (magnetic and electromagnetic) targets identified under shallow cover (Figure 1).

A large alteration system consistent with iron-oxide-copper-gold (‘IOCG’) mineral system has been identified at surface on EL25643 in the southern portion of the Huckitta Project (Figure 1). The area, located 30km south of Basil, was first identified by the Northern Territory Geological Survey (‘NTGS’) and was announced at the Annual Geoscience Exploration Seminar on March 21, 2011. The NTGS describes the alteration system as regional scale widespread fluorite rich fluid flow associated with hematite, pyrite and copper sulphides. They also noted anomalous copper and gold values from their surface sampling (up to 1900ppm copper and 59ppb Au).

Mithril may earn an 80% interest in EL25643 under a joint venture with Sammy Resources Pty Ltd, a wholly owned subsidiary of ASX listed Cazaly Resources Ltd ( ASX:CAZ ).

Mithril geologists have commenced mapping in the area and have noted intensely altered and brecciated granite with hematite-silica +/- fluorite veining and stockworks over an area up to 300m long and 5-15m wide. (Rock samples are depicted in Figure 2).

60 King William Road, Goodwood, South Australia 5034 Telephone: (61 8) 8378 8200 Fax: (61 8) 8271 0037 Web: www.mithrilresources.com.au Email: admin@mithrilresources.com.au ABN: 30 099 883 922

Although copper mineralisation has not been identified to date at this location, the alteration appears consistent with an IOCG system and these early results are encouraging. A gravity survey has commenced across the target area covering approximately 96km[2] . Surface samples for geochemical analysis will also be collected at each station as cover, where present is relatively thin (typically less than 2m cover).

Mithril will continue to build on the success of its regional programs to ensure a strong pipeline of high quality drill targets is maintained. In addition to the drilling programs described above, geological mapping ground geophysical (electromagnetic) surveys are underway and an airborne VTEM survey will commence in early May.

Drilling and geophysical results will be released to the market on an ongoing basis as they become available.

Mithril Resources Ltd is an ASX listed exploration company focused on the discovery and development of base metal deposits. Mithril is a frontier explorer with a small but highly experienced team based in Adelaide. Combining advanced technology with a proven field‐based approach ensures the bulk of the company’s expenses go directly into the ground. This is yielding excellent results and Mithril’s recent discovery of the Basil Copper Prospect at its Huckitta Project has the potential to deliver a large tonnage, f d

For more information visit www.mithrilresources.com.au or contact:

Mithril Resources Ltd Michels Warren Graham Ascough Richard Sproull 0418 585 517 admin@mithrilresources.com.au Kristy Macfarlane 0402 557 527 08 8378 8200

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr G Ascough, who is a full‐time employee of the Company and a Member of the Australasian Institute of Mining and Metallurgy. Mr G Ascough has more than five years experience which 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 G Ascough consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Figure 1: Project Location Map. Assay values are from surface rock chips unless otherwise indicated. (Au = gold, Cu = copper, Co = cobalt, W = tungsten, Ni = nickel, Pd = palladium and PGE's = platinum group elements).

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Figure 2: Surface rock samples from the ICOG target area. (a) hematite and fluorite vein from altered granite; (b) fluorite veins approximately 2cm wide; (c) hematite veins in altered granite; (d) hematite-silica veins in altered granite.