CAZALY RESOURCES LIMITED — Capital/Financing Update 2016

May 26, 2016

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27 May 2016

ASX Announcement Information Required Under ASX Listing Rule 3.10.5A

Further to the lodgement of the Appendix 3B on 27 May 2016, Cazaly Resources Limited (‘Cazaly’) provides the following information as required under ASX Listing Rule 3.10.5A in respect of the Placement shares issued on 27 May 2016:

• (a) Dilution to existing shareholders as a result of the issue of securities under the Placement

Number of shares on issue prior to Placement: 137,308,788

Placementissue under ListingRule7.1(9,324,067shares)	6.8%
Placement issue under Listing Rule 7.1A (12,983,625 shares)	9.4%
Totaldilutionas aresult of Placement	16.2%

Number of shares on issue following Placement: 159,616,480

• (b) A total number of 22,307,692 shares were issued under the placement as per the ASX announcement dated 20 May 2016. The placement funds will assist Cazaly to fund the ongoing exploration of its diversified resources portfolio and for working capital. Specific focus will be on the Goldfields Lithium Alliance, the Mt. Tabor cobalt project and the Mt. Venn gold project.

• (c) No underwriting arrangements were in place for the placement.

• (d) Capital raising fees of 6% were applicable on the total gross proceeds of the placement.

Yours faithfully

Mike Robbins Company Secretary

Level 2, 38 Richardson Street West Perth Western Australia, 6005. PO Box 396, West Perth, Western Australia, 6872 Phone: +61 8 9322 6283 Fax: +61 8 9322 6398 email: admin@cazalyresources.com.au ACN 101 049334 www.cazalyresources.com.au