CULLEN RESOURCES LIMITED — Capital/Financing Update 2007

Aug 1, 2007

2[nd] August 2007

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ASX ANNOUNCEMENT

Option to Purchase Tenements South of Coolgardie

The Company has signed an Option to Purchase Agreement with Killoran Pty Ltd, Kurana Pty Ltd ( Kurana ) and associates, which provides the opportunity for Cullen Resources Ltd ( Cullen ) to purchase a group of seven tenements in the Coolgardie area of Western Australia, namely: M15/128; MLA15/876; M15/237; PL’s 15/4570-4572 and PL 15/4593, comprising ~350 Ha in total. The consideration for the Option is the issue of 300,000 Cullen shares, and Cullen may exercise the option at any time within three years of issue of the shares by the issue of a further 3 Million Cullen shares to Kurana. A 1.5% Net Smelter Return is also payable to Kurana on any production. Cullen’s minimum expenditure is to maintain the tenements in good standing.

The largest tenement of this group, M15/128 ( Lady Grace ), adjoins the well known McPherson’s Reward gold mine immediately to the SW (see Figure). Within M15/128, at the boundary with McPherson’s Reward open pit, is a small pit called the “A-Cap”, from where it is reported that 190,000 t @ 1.8 g/t Au (~11,000 ozs) were mined in the mid-1980’s. Further drilling by Spinifex Gold NL in 1996-97, (RC at 40 x 40m and 20 x 20m), at the base of the A-Cap pit provided data for a resource estimation of ~100,000 t @ 2.7 g/t Au using a 1g/t Au lower cut. The status of this resource with respect to JORC compliance has not yet been ascertained by Cullen but the information is an indication of a significant exploration target within the area optioned by Cullen.

From available mapping, the Lady Grace prospect area includes approximately 1.5km of strike of the same intrusive porphyry that hosts the gold mineralisation at McPherson’s Reward (see Figure). This porphyry has previously been lightly explored and untested portions, sheared contacts and sheeted vein sets with supergene gold mineralisation within the porphyry, comprise an obvious set of primary targets for Cullen’s exploration.

In addition, at Frank’s Find (PL15/4571), at the southern limit of M15/128, previous reported drill intersections include: 1m @ 95.9 g/t Au; 1m @ 28.6 g/t Au; 1m @ 46.8 g/t Au and 2m @ 30.13 g/t Au. Previous drilling has targeted the interpreted position of two parallel lodes at Frank’s Find and these, and their strike extent to the NE into M15/128, are also high priority targets. At the Melanie Anne prospect (M15/237) previous drill intersections include: 20m @ 2.82 g/t Au from mid-1990’s drilling along a ?black shale/ dolerite contact. An investigation of the potential of this mineralisation will be a priority for Cullen. Another tenement in the optioned group adjoins the Burbanks prospect area of Barra Resources Limited and also warrants assessment.

These prospects offer an opportunity to discover significant gold mineralisation in a variety of target settings. Cullen’s exploration will commence immediately and comprise detailed data compilation and field mapping and sampling; followed at an early stage by drilling.

ABN 46 006 045 790 Unit 4, 7 Hardy Street, South Perth WA 6151 Tel: (08) 9474 55 11 Fax: (08) 9474 5588 Email: cringrose@cullenresources.com.au Website: www.cullenresources.com.au

Target Summary:

• Mineralised zone at base of A-Cap pit and extensions;

• 1.5km of untested porphyry;

• Extensions to high grade lodes at Franks Find prospect; and

• Extensions along shale-dolerite contact at Melanie Anne prospect.

Dr Chris Ringrose Managing Director

For further information contact: Chris Ringrose on (08) 9474 5511

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 mineralisation 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.

ABN 46 006 045 790 Unit 4, 7 Hardy Street, South Perth WA 6151 Tel: (08) 9474 55 11 Fax: (08) 9474 5588 Email: cringrose@cullenresources.com.au Website: www.cullenresources.com.au

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----- Start of picture text ----- 322500mE Bayleys 327500mE Reward 6575000mNLindsaysCoolgardieBayleysKing SolomonAlluvium Rose HillColluvium Golden BarLaterite and reworked productsPorphyryGraniteMetamorphosed high-mg basaltDoleriteBrilliantMetakomatiiteFaultShear zone Big BlowCookesHistorical and working minesGold occurence Lady CharlotteCullen tenement boundaryEmpressTindals MelanieN Anne 6570000mN1 kilometre Target:Dreadnought Shale dolerite contactMc Phersons RewardTarget:A-CAP resourceand extensionsTarget:Target:Untested porphyry Bakers Extensions ofMcPhersons host Find Franks high grade lodesFindBurbanksBig Blow Lady CharlotteEmpress WyndhamTindalsMelanie AnnePort HedlandMc Phersons RewardDreadnought NewmanMeekatharra WilunaGeraldtonKalgoorliePerthPROJECTLOCATIONBakersFranksFindFindBurbanksCOOLGARDIE PROJECTC U L L E NGeology & Tenement Location Resources LimitedPer ht----- End of picture text -----