CAZALY RESOURCES LIMITED — Capital/Financing Update 2012

Aug 26, 2012

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Cazaly to contribute 20% of ongoing expenditure at Illogwa

• Mithril’s joint venture partner - Cazaly Resources to maintain its 20% interest by contributing prorata to expenditure going forward

• Drilling continues to test newly confirmed iron oxide copper gold system at Illogwa ahead of a regional VTEM survey commencing early September 2012

Further to its ASX release of 14 August 2012, Mithril Resources Ltd (ASX: MTH) is pleased to advise that its joint venture partner Cazaly Resources Ltd (ASX: CAZ) , through its wholly owned subsidiary Sammy Resources Pty Ltd, will contribute pro-rata to ongoing expenditure in order to maintain its 20% interest in the joint venture in the Illogwa Iron Oxide Copper Gold (IOCG) Target Area .

Illogwa is located on the Company’s Huckitta Project approximately 150 kilometres east of Alice Springs, Northern Territory and lies within three tenements, two of which (ELs 25643 and 25653) are subject to a joint venture between Mithril Resources (80%) and Sammy Resources Pty Ltd (20. The third tenement is wholly owned by Mithril.

Mithril is the operator of the joint venture and has recently earned its 80% interest by completing expenditure of $2 million.

Under the terms of the agreement, Sammy had 60 days from Mithril earning its 80% interest, to elect to contribute pro-rata on ongoing expenditure (and maintain its 20% interest) or revert to a 1.5% Net Smelter Returns royalty, leaving Mithril with a 100% interest in the project.

As previously announced, drilling is continuing at Illogwa, where the Company has recently confirmed the presence of a potentially significant iron oxide copper gold mineralised system , ahead of a regional VTEM survey commencing early September 2012.

ENDS

T: (61 8) 8378 8200 F: (61 8) 8378 8299 E: admin@mithrilresources.com.au

58 King William Road Goodwood, South Australia, 5034 www.mithrilresources.com.au

ASX Code: MTH Issued Shares: 219,615,500 Page 1 of 2 Market Capital: $15.37 million

For Further Information Contact:

Mithril Resources Ltd David Hutton, Managing Director admin@mithrilresources.com.au

58 King William Road Goodwood, South Australia 5034 ABN: 30 099 883 922 T: (61 8) 8378 8200 F: (61 8) 8378 8299 www.mithrilresources.com.au

Competent Persons Statement:

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr David Hutton (Managing Director), who is a fulltime employee of the Company and a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr D Hutton 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 Hutton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About Mithril Resources Ltd:

For Media Inquiries Contact:

Michels Warren Richard Sproull 0418 585 517 Kristy Macfarlane 0402 557 527

Mithril Resources Ltd is an Australian exploration company focused on the discovery and development of base metal deposits primarily copper. 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.

T: (61 8) 8378 8200 F: (61 8) 8378 8299 E: admin@mithrilresources.com.au

58 King William Road Goodwood, South Australia, 5034 www.mithrilresources.com.au

ASX Code: MTH Issued Shares: 219,615,500 Page 2 of 2 Market Capital: $15.37 million