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CAZALY RESOURCES LIMITED Regulatory Filings 2007

Jul 11, 2007

64609_rns_2007-07-11_70c3badf-a45f-432c-8778-212fdc3a8750.pdf

Regulatory Filings

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ANNOUNCEMENT TO THE AUSTRALIAN STOCK EXCHANGE THURSDAY 12 JULY 2007

SIGNIFICANT NICKEL DRILLING RESULTS AT BLAIR NORTH, EAST KALGOORLIE PROJECT, WESTERN AUSTRALIA

HIGH COPPER AND ANOMALOUS GOLD VALUES

(Northern Mining Limited (NMI) 75%, Cazaly Resources Limited (CAZ) 25%)

Highlights:

Nickel values up to 1.57%:

Hole BNR 0142 21 metres from 30 – 51 metres at 1.1% Ni Hole BNR 0141 20 metres from 30 – 50metres at 0.79% Ni Hole BNR 0006 20 metres from 24 – 44 metres at 0.63% Ni Hole BNR 0246 13 metres from 30 – 43 metres at 0.66% Ni

The Board of Northern Mining Limited is pleased to report significant Nickel drilling results from the recently completed rotary air blast (RAB) drilling programme on E25/268 at Blair North, 30km southeast of Kalgoorlie, Western Australia.

The programme was designed by Newexco Services Pty Ltd (Newexco) to detect disseminated and massive nickel sulphides. It involved a total of 14,682 metres drilling, producing 3,871 samples, each assayed for 14 elements, including nickel, cobalt, copper and gold. All holes were drilled at -60 degrees grid east.

Anomalous nickel values (up to 1.57% Ni in BNR0142 from 40 – 41m) were detected in many drill holes with 16 samples exceeding 1% Ni (Table 1). Some of the nickel rich samples show lateritic characteristics while others have a high (> 350ppm Cu) copper content supporting the view that nickel sulphides may be present in the fresh rock. Anomalous gold values were also detected with the highest values being 3.45ppm Au and 10 samples in excess of 0.5ppm Au (Table 2). Based on the results, Newexco has confirmed that the area is prospective for nickel sulphides, nickel laterite and gold and that the results warrant follow-up RAB and reverse circulation (RC) drilling. This drilling programme will be carried out in August 2007.

NICKEL

Hole BNR0006 intersected 20 metres of nickel at 0.63% Ni along the southern tenement boundary immediately north of the holes reported by Southern Gold (Quarterly Report, March 2007) (Figure 1). Their best hole was BSRC004 intersecting 1.4% Ni from 52 – 58 metres which included 2 metres at 2.1% nickel. This intersection in BNR0006 warrants deeper RC drilling to locate nickel sulphides in fresh rock.

Along strike from BNR0006 and striking 500 metres north-northeast, four holes (BNR0021, 22, 34 and 48) intersected anomalous nickel and copper values that may reflect nickel sulphides at depth (Table 1). These intersections warrant RC drill testing at depth to determine if bedrock nickel sulphides are present.

As well, highly anomalous nickel and copper values were intersected in hole BNR0067 over 8 metres from 44 to 52 metres on line 6591000N (Table 1).

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PO Box 1007, Scarborough WA 6922 : Level 3, 25 Walters Drive Osborne Park WA 6017 Email [email protected] : Website www.northernmining.com.au Telephone (08) 9244 8499 : Facsimile (08) 9244 3166 ABN: 30 113 654 229 : ACN: 113 654 229

ANNOUNCEMENT TO THE AUSTRALIAN STOCK EXCHANGE THURSDAY 12 JULY 2007

NICKEL AND COPPER

Table 1: Anomalous Nickel Intersections E25/268

Hole East North From
(m)
To
(m)
Metres Ni
(%)
Cu
(ppm)
BNR0006 381403 6590209 24 44 20 0.63 47
BNR0022 381211 6590401 **82 ** 86 4 0.13 583
BNR0034 381394 6590596 36 37 1 0.35 409
BNR0034 381394 6590596 37 38 1 0.58 573
36 38 2 0.47 **491 **
BNR0046 381595 6590797 17 18 1 0.44 57
BNR0046 381595 6590797 18 19 1 1.25 76
BNR0046 381595 6590797 19 20 1 0.57 84
17 20 3 0.75 72
BNR0048 381401 6590802 38 39 1 0.09 329
BNR0048 381401 6590802 39 40 1 0.11 447
BNR0048 381401 6590802 40 41 1 0.06 247
BNR0048 381401 6590802 41 42 1 0.11 587
BNR0048 381401 6590802 42 43 1 0.08 440
38 43 5 0.09 410
BNR0067 380896 6591001 44 45 1 0.71 176
BNR0067 380896 6591001 45 46 1 0.63 145
BNR0067 380896 6591001 46 47 1 0.92 176
BNR0067 380896 6591001 47 48 1 1.26 282
BNR0067 380896 6591001 48 49 1 0.81 509
BNR0067 380896 6591001 49 50 1 0.31 232
BNR0067 380896 6591001 50 51 1 0.34 248
BNR0067 380896 6591001 51 52 1 0.27 134
44 **52 ** 8 0.66 238
BNR0141 381701 6593192 30 35 5 1.00 108
BNR0141 381701 6593192 35 40 5 0.65 131
BNR0141 381701 6593192 40 45 5 0.75 98
BNR0141 381701 6593192 45 50 5 0.75 125
30 50 20 0.79 115
BNR0142 381597 6593199 30 **51 ** 21 1.1 17
BNR0142 381597 6593199 40 41 1 1.57 38
BNR0246 378105 6591601 30 35 5 0.7 103
BNR0246 378105 6591601 35 39 4 0.78 67
BNR0246 378105 3591601 39 43 4 0.49 65
30 43 13 0.66 80

GOLD

Anomalous gold values (> 0.2ppm Au) in 34 samples were intersected in 16 holes and are summarised in Table 2. The highest gold value was 3.45ppm Au in hole BNR0027 at 99 –100 metres in the end of the hole. Some of the anomalous zones were re-sampled at 1.0m intervals and are also listed in Table 2.

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Table 2: Anomalous Gold Intersections E25/268

Hole East **North ** From (m) To (m) Metres Au ppm Comments
BNR0027 380700 6590396 99 100 1 3.45 EOH resampled
BNR0003 381701 6590209 45 49 4 0.98 End of hole
BNR0037 381113 6590589 36 37 1 0.5 Resampled at1.0m
BNR0037 381113 6590589 37 38 1 0.25 Resampled at1.0m
BNR0037 381113 6590589 38 39 1 0.25 Resampled at1.0m
BNR0037 381113 6590589 39 40 1 0.1 Resampled at1.0m
BNR0037 381113 6590589 40 41 1 0.49 Resampled at1.0m
BNR0037 381113 6590589 41 42 1 0.19 Resampled at1.0m
BNR0037 381113 6590589 42 43 1 0.04 Resampled at1.0m
BNR0037 381113 6590589 43 44 1 0.22 Resampled at1.0m
36 44 8 0.26 Assay Average
BNR0048 381401 6590802 40 41 1 0.18 Resampled at1.0m
BNR0048 381401 6590802 41 42 1 0.47 Resampled at1.0m
BNR0080 381902 6591398 48 52 4 0.23 4.0mcomposite
BNR0083 381596 6591397 63 64 1 1.02 Resampled at1.0m
BNR0094 381201 6592198 68 69 1 0.26 Resampled at1.0m
BNR0094 381201 6592198 69 70 1 0.35 Resampled at1.0m
BNR0094 381201 6592198 70 71 1 0.43 Resampled at1.0m
68 71 3 0.35 Assay Average
BNR0095 381103 6592197 72 73 1 0.96 Resampled at1.0m
BNR0095 381103 6592197 73 74 1 0.26 Resampled at1.0m
BNR0095 381103 6592197 74 75 1 0.02 Resampled at1.0m
BNR0095 381103 6592197 75 76 1 0.01 Resampled at1.0m
BNR0095 381103 6592197 76 77 1 0.37 Resampled at1.0m
BNR0095 381103 6592197 77 78 1 0.55 Resampled at1.0m
BNR0095 381103 6592197 78 79 1 0.15 Resampled at1.0m
BNR0095 381103 6592197 79 80 1 0.04 Resampled at1.0m
BNR0095 381103 6592197 80 81 1 0.06 Resampled at1.0m
BNR0095 381103 6592197 81 82 1 0.09 Resampled at1.0m
BNR0095 381103 6592197 82 83 1 0.11 Resampled at1.0m
BNR0095 381103 6592197 83 84 1 0.49 Resampled at1.0m
BNR0095 381103 6592197 84 85 1 0.44 Resampled at1.0m
BNR0095 381103 6592197 85 86 1 0.24 Resampled at1.0m
BNR0095 381103 6592197 86 87 1 0.22 Resampled at1.0m
72 **87 ** 15 0.27 Assay Average
BNR0096 380999 6592198 37 38 1 0.35 Resampled at1.0m
BNR0096 380999 6592198 40 41 1 0.64 Resampled at1.0m
BNR0101 381906 6593597 76 80 4 0.38 4.0mcomposite
BNR0101 381906 6593597 108 112 4 0.26 4.0mcomposite
BNR0278 380213 6590006 46 47 1 0.34 Resampled at1.0m
BNR0327 380607 6591199 55 60 5 0.26 5.0mcomposite
BNR0335 381304 6592998 45 50 5 0.72 5.0mcomposite
BNR0339 381499 6592801 35 40 5 0.71 5.0mcomposite
BNR0344 381495 6592599 36 40 4 0.25 4.0mcomposite
BNR0344 381495 6592599 48 52 4 0.93 4.0mcomposite
BNR0344 381495 6592599 60 64 4 0.41 4.0mcomposite
BNR0345 381320 6592599 59 63 4 0.2 4.0mcomposite

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PO Box 1007, Scarborough WA 6922 : Level 3, 25 Walters Drive Osborne Park WA 6017 Email [email protected] : Website www.northernmining.com.au Telephone (08) 9244 8499 : Facsimile (08) 9244 3166 ABN: 30 113 654 229 : ACN: 113 654 229

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----- Start of picture text -----

E25/268
Southern Gold
(SAU) recent:
2m @ 2.06% Ni
2m @ 1.7% Ni
10m @ 1.2% Ni
Australian Mines
Limited (AUZ) Blair
Nickel Mine >26,000
contained tonnes
Nickel (historical)
----- End of picture text -----

Figure 1: East Kalgoorlie Tenements – E25/268 Blair North Location

ANNOUNCEMENT TO THE AUSTRALIAN STOCK EXCHANGE THURSDAY 12 JULY 2007

GOLD continued

The high gold value in hole BNR0027 at 99 – 100m in the end of the hole should be followed up with one RC hole to confirm the intersection and if possible delineate more gold at depth in bedrock.

Anomalous gold values (values > 0.2ppm) were intersected from lines 6592200N to 6593000N over 800 metres of strike length in holes BNR 94, 95, 96, 335, 339, 344, 345 and 346. The thickest intersection was in hole BNR0095 from 72m to 87m with 15m @ 0.27ppm Au. The highest value in this zone was in hole BNR0344 with 4m @ 0.93ppm from 48 – 52 metres.

This zone warrants follow-up RAB and RC drilling to infill the drill spacing and determine if there are economic concentrations of gold present.

Adrian Black from geological consultants Newexco Services Pty Ltd (“Newexco”) is responsible for the verification and quality assurance of the Company’s exploration data and analytical results from the Blair North programme. Drill holes were laid out by handheld GPS and direction surveyed by handheld compass. Chip samples from the drill holes were spear sampled and analysed by Kalassay Laboratories in Kalgoorlie for nickel, copper, cobalt, gold and 10 other elements. Assay standards and blanks were routinely inserted in the sample stream by Newexco for quality control.

The information within this report as it relates to exploration activities is based on information compiled by Adrian Black. Adrian Black is a member of Australian Institute of Geologists. Adrian Black has sufficient 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.’ Adrian Black consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

ALAN K LOCKETT EXECUTIVE CHAIRMAN

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PO Box 1007, Scarborough WA 6922 : Level 3, 25 Walters Drive Osborne Park WA 6017 Email [email protected] : Website www.northernmining.com.au Telephone (08) 9244 8499 : Facsimile (08) 9244 3166 ABN: 30 113 654 229 : ACN: 113 654 229