CZR RESOURCES LTD — Interim / Quarterly Report 2008

Apr 29, 2008

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Quarterly Report For the period ending 31 March 2008

Highlights

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• Evaluation of Ground Magnetic Survey at Rawang Gadang, Western Sumatra, Republic of Indonesia.

• Evaluation of Inderapura Coal Project, Western Sumatra, Republic of Indonesia.

• Copper-Gold (Cu/Au) in soil anomalies identified at Singkarak, JV negotiations remain in progress.

• “Heads of Agreement” with PT Persadatama Agung Lestari (“PT PAL”) to form a JV to explore the Landas Paeu Coal Project, due diligence still ongoing.

• “Heads of Agreement” with PT Galian Endapan Buana (GEB) to form a JV for Lead Trading, Exploration and Mining venture in Indonesia.

• GEB was awarded the requisite Lead export licence by the West Sumatra Government on 12 February 2008

• Exercise of two millions options by 2 directors at 20 cents, thereby providing $400,000 funding for the company.

• Tenements of Kunyit Iron ore, Lubuk Gadang Lead Zinc and Bukit Bara Lunang Coal Projects were written off.

• Lead trading business progressing well with the signing of two sale and purchase agreements.

Introduction

The review of Ground Magnetic Survey at Rawang Gadang results which indicates a SE extension to Magnetite mineralisation to the limit of the survey is still ongoing.

Review of the Inderapura Coal project and the possibility of supplying to the local cement factory.

The Singkarak Copper-Gold Cu/Au Project JV negotiation is on going. A potentially significant Cu/Au anomaly was defined by soil sampling at the Pasilihan Prospect.

“Heads of Agreement” with PT Persadatama Agung Lestari (“PT PAL”), with the intention of establishing a joint venture to explore the Landas Paeu Coal Project area, located in East Kalimantan, Indonesia. Due diligence is ongoing.

A “Heads of Agreement” was entered with PT Galian Endapan Buana (GEB) to form a JV for Lead Trading, Exploration and Mining venture in Indonesia.

Projects Review

• Rawang Gadang Iron Ore Project

As announced earlier (period ending 30.SEP.07) the Ground Magnetic Survey was accomplished during the last quarter. The survey was completed by PT Elliot Geophysics Indonesia (“Elliots”) by the means of two Geometric G856 PPM Magnetometers.

The program covered the area previously drilled and was designed to examine the extensions of known mineralisation. The survey was very successful in delineating the recognized mineralisation and a 350m extension of the Iron mineralisation to the South-East, to the limit of the survey. No field activities were carried out at Rawang Gadang. This project is still under the company’s assessment.

• Kunyit Iron Ore Project

The company had decided to write off Kunyit Iron Ore project due to unfavourable resource content and in the company’s view it is not viable to continue exploring this tenement.

• Lubuk Gadang Lead Zinc Project

The company had decided to write off Lubuk Gadang Lead Zinc project due to unfavourable resource content and in the company’s view it is not viable to continue exploring this tenement.

• Bukit Bara Lunang Coal Project

The company had decided to write off Bukit Bara Lunang Coal project due to unfavourable resource content and in the company’s view it is not viable to continue exploring this tenement

• Inderapura Coal Project Area

With Grange Resources Limited no longer participating in the Joint Venture, the results of the due diligence work were analytically assessed. Grange Resources has indicated that the production potential for the Inderapura Coal is suitable for domestic consumption by Indonesian or other South East Asian cement manufacturers. We will now analyze all compiled data and will explore the possibility of defining resources to supply the local cement factory in Padang City at Western Sumatra.

- The Grange Resources Coal Seam Channel Sampling Analysis for Inderapura Project:

	Total	Inherent	Ash	Volatile	Fixed	Total	Calorific
	Moisture	Moisture		Matter	Carbon	Sulfur	Value
Sample_ID	%(ar)	%(ad)	%(ad)	%(ad)	%(ad)	%(ad)	(kcal/kg ad)
OC-01/BBI	7	3	20.8	36	40.2	0.5	6030
OC-07/BBI	11.8	5.3	20.9	29.9	43.9	0.75	5418
OC-010/BBI	7.7	3	27.5	29.5	40	3.6	5496
OC-017/BBI	3.5	1.9	12.4	39.4	46.3	3.27	6965
BBI-01	4.7	2.5	20.7	38.8	38	0.47	6107
BBI-04	2.8	1.9	8.9	38	51.2	1.74	7436
BBI-05	4.5	1.7	27.6	31.8	38.9	0.43	5777
BBTPn-01	10.7	6.2	18.3	33.7	41.8	0.74	5693
BBTPn-02-A	6.4	4.3	8.3	39.9	47.5	1.09	6933
BBTPn-02-B	8.5	4.4	23.2	34.3	38.1	0.63	5468
Average	6.76	3.42	18.86	35.13	42.59	1.32	6132

• Singkarak Copper-Gold Cu/Au Project

An intensive soil sampling and geological mapping program was completed at Singkarak Project over the Pasilihan area, as an adjunct to the previous geological due diligence work. Soil samples were collected on a 100m x 25m grid which was corrected for topography. Soil samples collected from the “C” horizon by using hand augers were under geologist supervision, and later dispatched to Intertek/Caleb Brett in Jakarta for analysis for Gold and a suite of another 32 elements. Duplicate samples were taken at regular intervals to confirm QAQC.

The soil sampling program was highly encouraging. Soil geochemistry shows a distinct anomalous multielement (Cu-Au-Pb-Sb-Mo) NNE trend generally concurrent with Silica/Clay/Sulphide alteration zones which was mapped in the field. The anomalous area is over 1km long and 250m wide, and is still open to the south. The altered zone gradually subsided towards the North under much younger superimposed rocks of the Ombilin Formation. Copper forms distinctive Bulls Eye style anomaly grater than 500ppm with about 300m long and 150m wide area inside the broader anomalous trend. Gold anomaly distribution is more sporadic than Copper. Nevertheless, at 100ppb level, Gold forms coherent anomalies coincident with the other assayed elements. Furthermore, in various soil samples Gold reached 1.26ppm.

Final JV arrangements for the Singkarak Project are still in negotiation with the Indonesian partners.

• Landas Paeu Coal Project

The Company signed a “Heads of Agreement” with Pt Persadatama Agung Lestari (“PT PAL”) with the intention of forming a JV to explore the Landas Paeu Coal Project, located in East Kalimantan, Indonesia.

The Landas Paeu Project area comprises of 3,940ha and mineral property located in West Kutai Regency at the Province of East Kalimantan, Borneo Island, Indonesia. The block is held under general survey permit No 545/K-461-/2007 granted by the Regent of Kutai Barat.

The mineral property is prospective for thermal coal. The block has previously been explored for coal by PT PAL and other Indonesian companies. This exploration has identified a package of 12 coal seams attributed to the Oligocene Warukin Formation over a strike-length of 4.2 km. Warukin Formation Coal is being mined in several locations in South and East of Kalimantan and has gained a reputation as a low sulfur and low ash “enviro-coal”. Individual seams at the Landas Paeu Coal Project reach a maximum thickness of 13.45m in limited historical drill intercepts. Analysis of representative coal seam samples show coal quality parameters meet current export standards for thermal coal.(refer to table below),

Landas Paeu Coal Project Quality Parameters- Selected representative samples*:

Seam	Moisture	Ash	Total Sulfur	Gross Calorific value
	% adb	% adb	% adb	kcal/kg adb
A	19.3	1.2	0.52	5662
B	21	0.7	0.58	5599
C	18.4	2	0.57	5779
D	17.3	4.8	1.37	5568
G	18	1.3	0.41	5881
H	15.3	2.4	0.8	6030
I	15.8	1.2	1.05	6238
J	12.4	3.7	3.88	6229
K	13.7	1.4	1.64	6215

*Analysis by Sucofindo Laboratories-Samarinda

Previous work on the prospect locale included outcrop mapping, sampling and shallow diamond drilling. The earlier diamond drilling program was carried out unsystematically.

Under the terms of the Head of Agreement (“Agreement”), Coziron (“CZR”) will pay PT PAL a consideration of USD$50,000 immediately. The agreement entitles Coziron to acquire 70% of the coal project for a consideration of USD$1 million, half of which is payable in cash, the other part in Coziron shares, following a suitable due diligence period. PT PAL will also be entitled to a USD$1 royalty per ton of coal sold from the project.

The Agreement is subject to a number of conditions including due diligence and site inspections to the satisfaction of Coziron. In the event that the all conditions are satisfied, Coziron will sign a formal Joint Venture agreement with Pt Persadatama Agung Lestari (“PT PAL”).

Coziron believes that the project area is highly prospective for thermal coal and that there is significant potential to delineate a sizeable, potentially economical resource. Coziron Resources plans to carry out geological mapping, topographic surveys and systematic resource definition drilling to further advance the project. The due diligence work is still ongoing.

• Lead Trading, Exploration and Mining project in Indonesia

In February 2008 the Company entered into a Heads of Agreement to Joint Venture with PT Galian Endapan Buana ( “GEB” ), on an 80 : 20 ratio ( CZR 80% & GEB 20% ) with GEB’s interest to be a free carried interest, in respect of a Lead Trading, Exploration and Mining venture in Indonesia. Due Diligence is ongoing.

On the 12[th] of February 2008 GEB was awarded the requisite Lead export licence by the West Sumatra Government. The company is targeting exports of 24,000 tons of Lead ore per annum.

The Company is stocking up and preparing for its first lead sales shipment in April 2008 and has signed its first sale and purchase agreement with Citic International, one of the largest State owned companies in China, to purchase 500 tons of Lead Ore (the trial shipment) where partial shipment is allowed.

The Company intends to have 200 tons (10 containers) shipped out before 30[th] April 2008, with 300 tons to be shipped out before 15th May 2008.

Hunan Guiyang Yinxing Non-ferrous Smelt Co. Ltd, one of the 15 largest non-ferrous metal smelters in China, has signed to purchase 500 to 1000 tons Lead Ore per month for one year.

For further details please refer to ASX media release announced by CZR earlier this year.

• Capital Injection

On the 12[th] of March 2008, two million options at 20 cents were exercised by two of the directors, thereby providing $400,000 funding for the Company. The funds will be utilised for the lead trading business and to source other prospective projects.

• Project Generation

In addition to the company’s active Asian exploration projects within this quarter, Coziron Resources has been considering several prospective exploration project proposals, both domestically in Australia and at the growing mining industry overseas. The company will announce its future projects in due course.

Yours Faithfully,

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Baker Khudeira Geologist

The contents of this report that relate to geology and historical exploration are based on information compiled by Mr Bakr Khudeira, who is a Professional Geologist and Member of the Australian Institute of Mining and Metallurgy (AusIMM). 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. Mr Khudeira consents to the inclusion of this report of the matters compiled by him in the form and context in which they appear.