CZR RESOURCES LTD — Capital/Financing Update 2007

Jul 17, 2007

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Wednesday, 18 July 2007

Australian Stock Exchange Exchange Plaza 2 The Esplanade PERTH WA 6000

DETAILED GROUND MAGNETIC SURVEY – RAWANG GADANG

The Directors of Coziron Resources Ltd (ASX Code: CZR) are pleased to announce that a detailed Ground Magnetic Survey has commenced at its Rawang Gadang Iron Ore Project (“ Rawang ”), located in Western Sumatra, Indonesia.

The Ground Magnetic Survey will be undertaken by PT Elliot Geophysics Indonesia using two Geometric G856 PPM Magnetometres. The scope of work encompasses an area of 1,000 x 800 metres, with survey specifications of 50 metre line spacings with magnetic responses recorded every 5 metres along survey lines. Approximately 16 line kilometres is proposed for the program which is designed to delineate further extensions of high grade magnetite.

A total of 20 holes for 1,320m have been completed at Rawang to date and drilling has reached vertical depths of up to 80 metres. Drilling tested the magnetite scarn mineralization approximately 400 metres along strike, and the Ground Magnetic Survey is designed to test further extensions which are currently open in a north-west and south-east direction.

The survey is expected to be completed in approximately one week and results will be made available as soon as practical.

Rawang Drilling Results

Better results from the 20 holes drilled to date have been tabulated below.

Selected drill hole intersections from holes RW001 – RW020.

Hole_ID	Depth From	Depth To	Width (m)	Fe %
**RW001 **	31.60	34.25	2.65	43.96
	38.90	40.10	1.20	42.10
	42.50	44.00	1.50	57.25
	44.50	50.00	5.50	43.05
**RW002 **	2.40	6.90	4.50	50.15
	8.85	9.85	1.00	54.00
	10.20	17.90	7.70	54.61
RW005	6.50	12.20	5.70	57.68
RW010	5.00	15.40	10.40	55.57
	27.15	30.35	3.20	51.05
	32.55	38.05	5.50	43.66
	38.40	42.30	3.90	41.69
	44.30	47.20	2.90	47.28
	47.70	50.55	2.85	47.18

RW011	3.90	5.80	1.90	53.00
	19.15	21.95	2.80	50.56
	32.90	34.55	1.65	54.50
	57.90	61.90	4.00	52.47
	65.90	72.20	6.30	41.90
	73.95	77.75	3.80	36.55
	86.90	96.00	9.10	36.60
RW012	42.10	55.55	13.45	36.48
RW013	23.15	34.00	10.85	38.03
	50.15	71.70	21.55	31.09
	74.79	76.95	2.16	32.65
RW015	6.30	6.75	0.45	39.70
	9.65	12.30	2.65	30.00
RW018	2.00	4.60	2.60	42.65
	7.40	8.55	1.15	42.50
	8.75	23.10	14.35	50.98
	31.85	33.75	1.90	61.20
RW020	4.20	9.15	4.95	54.96
	10.20	29.30	19.10	58.27
	36.65	38.20	1.55	50.00
	39.25	40.70	1.45	43.80

• Lower cut 30% Fe, grades have been averaged over each interval.

These results are a significant step in defining a potential small to medium sized high grade magnetite deposit and is in line with the Company’s goal to bring the project to production as soon as practical to enable early cash flow and value to shareholders.

A Mining License has recently been granted following the completion of the Environmental Impact Report. The Mining License will afford the Company the opportunity to commence any future mining operations following the satisfaction of all economic and technical evaluations.

Drilling tested a zone of magnetite which extends 400 metres east-west running semi parallel to the Sumatran Fault Zone (SFZ), and is exposed for 100 metres in width. Historical exploration delineated magnetite mineralization in 10 east-west trending trenches and exposed multiple stacked sheets of blocky magnetite, roughly dipping in sympathy with the slope. The host rock is a Quaternary volcanic sequence of tuffs and lavas and the prospect appears to be flanked north and south along strike by volcanic flows and is truncated to the west by the SFZ.

Drilling has confirmed a layered magnetite scarn ore body at near surface, within a weathered sequence of clays and Quarternary volcanics.

The thickest sequence was intersected in hole RW011 and included 92 meters of layered magnetite mineralisation from 3.90 metres.

Mineralisation remains open along strike (NW-SE) in both directions, and in some holes at depth.

The Project area is easily accessible by road via the Trans Sumatran Highway (“TSH”) and is located 54km from the Port City of Padang in Western Sumatra, and is serviced by all major infrastructures.

Metallurgical Test Work

Seven representative core samples have previously been collected for Davis Tube Recovery (“DTR”) test work and submitted to Ultra Trace Laboratories in Canning Vale, Perth.

Significant conclusions deducted from test work include:

▪ “Iron Ore average concentrate grade is more than Fe69%.”

▪ “The magnetite exhibits high weight recovery giving concentrate qualities significantly better than most Australian magnetites; with a direct reduction grade average of greater than 73%.”

▪ “Weight recovery is almost double that of Australian magnetite ores therefore requiring less ore to provide the same volume of concentrate.”

▪ “SiO2 is considered as an impurity and after DTR test work SiO2 content is significantly reduced; achieving on average a 70% reduction.”

▪ “Al2O3, MgO and P are all within acceptable Direct Shipping Ore (DSO) limits; levels of MgO can be considered an additional benefit during blast furnace techniques and is considered a ‘self fluxing’ ore.

▪ “An iron ore product of this quality, with higher concentrate, can achieve premium prices.”

Results of the DTR test work are tabulated below.

Sample_ID	Mag Wt Recovered (%)							S (%)	LOI (%)
		Fe	SiO2	Al2O3	Ca0	Mg0	P (%)
		(%)	(%)	(%)	(%)	(%)
**RWG-MET001 **	80.70	68.82	2.10	0.98	0.43	0.53	0.003	0.011	-2.70
**RWG-MET002 **	86.40	68.52	1.74	1.21	0.30	0.44	0.007	0.004	-2.03
RWG-MET003	86.80	68.86	1.72	0.90	0.24	0.23	0.012	0.009	-1.97
**RWG-MET004 **	72.20	69.55	1.40	0.91	0.35	0.24	0.002	0.006	-2.91
RWG-MET005	69.30	69.19	1.58	1.02	0.47	0.22	0.002	0.081	-2.92
RWG-MET006	49.50	70.22	1.02	0.39	0.56	0.08	0.002	0.004	-2.89
**RWG-MET007 **	69.10	69.89	0.96	0.56	0.28	0.12	0.003	0.004	-2.50
Average	73.43	69.29	1.50	0.85	0.38	0.27	**0.004 **	0.017	-2.56

Given the exceptional recoveries as detailed, the process of producing such high grade concentrates can therefore be achieved at reduced operating and capital cost.

Further metallurgical test work will be undertaken as and when required which includes; Grind Curve Analysis, to give magnetite grain size; Crushing Work and Abrasion Index testing. Although further metallurgical tests may be required, it is clearly evident that the Rawang magnetite deposit is of superior quality; and certainly one that rivals premium magnetite deposits within Australia.

For further information regarding the Rawang Project area, please see the website at www.coziron.com.

Alternatively please contact:

COZIRON RESOURCES LTD

Greg Burns Executive Director

Level 3/102 James Street NORTHBRIDGE WA 6003 T: +61 8 9227 7766 F: +61 8 9227 1370

Competent Persons: The contents of this report that relate to geology and historical exploration are based on information compiled by Mr Greg Burns, who is a Professional Geologist and Fellow Member of the Australian Institute of Mining and Metallurgy. He has sufficient experience relevant to the style of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a ‘Competent Person’ as defined in the 2004 Edition of the Australasian Code for Reporting Results, Mineral resources and Ore Reserves. Greg Burns consents to the inclusion in this report of the matters compiled by him in the form and context in which they appear.