CAZALY RESOURCES LIMITED — Share Issue/Capital Change 2009

Jul 27, 2009

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Carbine Resources Limited ABN: 81 122 976 818

Tempo Offices, Unit B9 431 Roberts Road, Subiaco Western Australia 6008

Ph: (618) 9287 4604 Fax: (618) 9287 4655

28 July 2009

The Manager Australian Stock Exchange Limited Level 4 20 Bridge Street Sydney, NSW 2000

Dear Sir

TERMINATION OF ROYALTY AGREEMENT

Carbine Resources Limited ( Carbine ) advises that it has entered into an agreement to terminate the royalty arrangement between Cazaly Resources Ltd ( Cazaly ), Hayes Mining Pty Ltd and Carbine Resources Limited in consideration of the following:

1. Carbine undertaking a selective buy-back and cancellation of the 6,635,949 ordinary shares held by Cazaly in Carbine Resources Limited for nil consideration in accordance with Part 2J of the Corporations Act 2001 (Cth) ( Buy Back ); and

2. Cazaly issuing to Carbine such number of ordinary shares in the capital of Cazaly as have a value equivalent to $200,000, calculated by reference to the Volume Weighted Average Price of Cazaly ordinary shares over a period of 5 trading days from the date Cazaly receives notice from Carbine that shareholder approval has been obtained.

The termination of the royalty agreement is conditional on the shareholders of Carbine passing a special resolution approving the Buy Back in accordance with Part 2J of the Corporations Act 2001 (Cth ).

The royalty agreement provided for a royalty to be paid on the following terms and conditions:

• Cazaly to pay Carbine a AUD$40/oz gold royalty on the first 75,000oz of production from Specified Tenements. This royalty is to be paid quarterly in arrears.

• $3,000,000 cash payment on gold production of a total of 140,000 ounces from specified tenements.

• Payments capped at $6,000,000.

Carbine Resources Limited ABN: 81 122 976 818

Carbine will proceed to call a general meeting of shareholders to obtain shareholder approval as set out above.

Yours faithfully

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Peter Torre Director/Company Secretary