CULLEN RESOURCES LIMITED — Capital/Financing Update 2006

Nov 27, 2006

CULLEN RESOURCES LIMITED

Head Office Unit 4 7 Hardy Street South Perth WA 6151

A B N 42 077 371 165

Registered Office Level 4. 118 Christie Street St Leonards NSW 2065

Telephone: (02) 9437 4588 Fax: (02) 9437 4599

Tel: (08) 9474 5511 Fax: (08) 9474 5588

Email: cullenp@cullenresources.com.au Website: www.cullenresources.com.au

EXPLORATION UPDATE

$\mathbf{1}$ . NEW URANIUM EXPLORATION JV AND FURTHER EXPANSION OF URANIUM PORTFOLIO

• Letter Agreement signed for new JV with "Element 92" for Cullen's Tunnel Creek Project WA
• 2 large prospective areas applied for in the Amadeus Basin, NT and two others in the Arunta Region
• Portfolio for uranium includes 8 tenements in WA and four in the NT (totaling $\sim$ 5,000 sq km)

The Company is pleased to announce that it has signed a Letter Agreement with Element 92 Pty Ltd (Element 92) a wholly owned subsidiary of Thundelarra Exploration Ltd (Thundelarra), for an Earn In and Joint Venture arrangement over its three applications at Tunnel Creek, in the Ashburton Region of Western Australia.

Thundelarra is an active uranium exploration company within Australia with its own inhouse uranium expertise, as well as being a major shareholder in Aldershot Resources Ltd (Aldershot), a Canadian-listed uranium exploration company. Aldershot holds the Turee Creek uranium project, the most exciting uranium prospect in the Tunnel Creek area, and is currently negotiating access agreements with a number of native title groups in the area (see Figure).

The terms of the Letter Agreement are that Element 92 will manage the applications through to grant, and will earn a 70% interest in any of the three tenements by spending a total of \$0.5 million on any one tenement within five years of the grant of any tenement, or an aggregate of \$1.5M on the three tenements combined. Element 92 has committed to a minimum expenditure of \$500,000 (\$167,000 each) before withdrawal. Once Element 92 has earned its equity, Cullen may contribute to the Joint Venture, or elect to take a 20% free carried interest to the completion of a Bankable Feasibility Study. At a Decision to Mine, Cullen may participate or take a 2% Net Smelter Royalty.

New Tenement Applications

Cullen has recently further enhanced its uranium exploration portfolio, with the addition of four exploration licence applications in the Northern Territory which it considers are prospective for uranium mineralization. These applications are in addition to the portfolio of exploration licence applications in Western Australia, as summarized in the Company's Quarterly Report to 30/9/06 – see Figure.

Amadeus Basin

The applications in the NT include two large areas of the Amadeus Basin sediments along strike to the west of known sandstone-hosted uranium prospects at Angela-Pamela, Julia, and Nonouba-Daria. The Amadeus Basin is a large, east west trending intracratonic basin of Late Proterozoic to Carboniferous marine and continental sediments.

Arunta Region

Two other exploration licence application cover rocks of the Arunta Region, and are located ~100km NE of Alice Springs. These application areas are considered prospective for pegmatite-hosted/vein uranium occurrences and there are also Tertiary channel lignite deposits in the larger application area, which may have potential for roll-front uranium mineralization.

Dr Chris Ringrose, Managing Director of Cullen commented: "We are pleased to have secured these prospective uranium areas, in the face of recent high levels of competition for ground. The farming out of the Tunnel Creek Project to a significant player in the region, is an example of Cullen's business model in action Cullen's quality uranium portfolio and interests have now reached sufficient size and spread to merit consideration of a spin out, or an asset merger with a peer company."

Preliminary field reconnaissance is underway on the Yilgarn application areas, and data compilation has started for the NT application areas.

$\overline{2}$ . NORTH EAST GOLDFIELDS - RESULTS FROM EM DRILLING

Joint Venture Manager Independence Group NL, has reported that neither the two RC drill holes completed at Irwin Bore nor the one hole drilled at Mt Tate contained any significant nickel assays.

NORSEMAN – KILLALOE NICKEL JV. WA 3.

Nickel Australia Limited has notified Cullen that it is withdrawing from the Nickel Joint Venture on the ground at Killaloe near Norseman in the Eastern Goldfields. This is part of Nickel Australia's strategy to concentrate its exploration efforts in Mexico.

Cullen will seek a new partner to progress further exploration for nickel sulphides on this project.

PROJECT	URANIUM	TENEMENT	AREA(	TARGET TYPE	COMMENT
	PROVINCE	APPLICATION	sq km)
Tunnel Creek	Turee Creek-	ELA'S	$\overline{600}$	Ranger-type	JV to major shareholders
	Angelo River,	52/1890-1892		unconformity	of Turee Creek project
	Ashburton, WA			deposit
Far Out	Arunta Orogen	ELA's	$\overline{-400}$	Calcrete,	Eastern ELA close to
	and Amadeus	80/3506,3507		IOCG, and/or	major radiometric anomaly
	Basin, WA			sandstone	on Lake Mackay
				hosted
Wooramel	Nth Yilgarn -	ELA 09/1364	$\overline{200}$	Calcrete-type	Untested channel $(\sim 20 \text{km})$
	Gascoyne,
	WА
Ross Well	Yeelirrie	ELA 51/1169	$\overline{200}$	Calcrete-type	"Upstream" from known U
	Region,				occurrences $(\sim 20 \text{km})$
	WA
Stirling	Lake Maitland	ELA 37/851	$\overline{~}$ 150	Calcrete-type	Same channel as
	Region,				L.Maitland U resource;
	WA				GSWA soil anomalies in
					channel $(\sim 20 \text{km})$
Haags	Amadeus Basin,	EL25493	~1500	Sandstone-	Targeting Permo-Carb
	NT			hosted	sediments
Hermannsberg	Amadeus Basin,	EL25494	$\sqrt{1500}$	Sandstone-	West of trend of known
	NT			hosted	prospects including
					Pamela/Angela
Mt Gordon	Arunta	EL25620	~100	Tertiary	Nearby uranium occurrences
	NT			lignite and/or	and source rocks
				veins
The Peak	Arunta	EL25716	$\overline{\sim}30$	Vein/alteratio n	Nearby uranium occurrences
	NT			struc tures on	atYambla (of Deep Yellow
				amphibolite	$Ltd$ )
				contact

SUMMARY OF URANIUM EXPLORATION TENEMENTS

ATTRIBUTION

The information in this report that relates to Exploration Results is based on information compiled by Dr Chris Ringrose, Managing Director, Cullen Resources Ltd who is a Member of the Australian Institute of Mining and Metallurgy. Dr. Ringrose is a full time employee of Cullen Resources Ltd. He has sufficient experience which is relevant to the style of mineralization and types of deposits under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined by the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Dr. Ringrose consents to the report being issued in the form and context in which it appears.