CAZALY RESOURCES LIMITED — Director's Dealing 2005

Feb 17, 2005

18th February 2005 ASX Release

MANAGING DIRECTORS EXERCISE OPTIONS PROVIDING FURTHER \$875,000 FOR EXPLORATION

The Board of Cazaly Resources Limited (ASX Code: CAZ) confirm that Mr. Nathan McMahon and Mr. Clive Jones have collectively exercised 2,500,000 options to subscribe for fully paid ordinary shares at \$0.35 each raising \$875,000 for Cazaly. The shares converted as a result of the Option exercise will be subject to escrow until 31^st October 2005.

These funds will assist in the ongoing exploration activities of the Company where a large reverse circulation drilling programme consisting of 5,000m, has recently commenced at the Kunanalling/West Kalgoorlie project.

Cazaly is solely focused on the Kunanalling/West Kalgoorlie project and significant encouragement has been received from recent exploration.

Yours sincerely,

Nathan McMahon

Managing Director

Information in this report pertaining to mineral resources and exploration results was compiled by Mr. C.B Jones who is a Member of the Aus.I.M.M with not less than 5 years experience in the relevant fields, and who consents to the report appearing in the form and context in which it appears.