Cazaly Resources Limited is pleased to provide an exploration update for the Mount Angelo North prospect located within the Halls Creek Copper project. The Halls Creek Copper project is subject to an agreement with 3D Resources Limited whereby Cazaly may earn up to a 75% interest in the project. Cazaly has now completed its second phase of RC drilling over the Mount Angelo North copper deposit. The drilling targeted the extrapolated extensions of mineralisation in areas highlighted by Cazaly’s maiden drill program and also followed up on IP anomalies located along strike. A total of 21 holes for 1,740m were drilled. Several holes intersected massive, disseminated and stringer sulphides extending known mineralisation further to the south. Results from the drilling are pending.

Initial metallurgical test work conducted on samples taken from the Mount Angelo North deposit indicates that good metal recoveries are achievable using simple floatation parameters forsulphides. Further work is currently being conducted to further improve these recoveries. The test work results give encouragement for further, more definitive test work to be conducted. A Helicopter-borne Electromagnetic (HeliTEM) survey was flown over the entire Halls Creek Project in February. The aim of the survey was to identify any further potential VMS – style base metal deposits in the region with approximately 1,050 line km of data was collected. Raw data products have been received and highlight several potential anomalies. This data is currently being processed.

A programme of RC drilling has been planned to test the Mount Angelo Porphyry target located approximately 3km to the southwest of the Mount Angelo North deposit. Previous drilling here identified substantial low grade copper mineralisation with results including; 117m @ 0.32% Cu, 150m @ 0.30% Cu and 76m @ 0.36% Cu with subordinate Mo-Bi-Ag-Au. Subsequent geophysics, Dipole-Dipole surveying, confirmed the presence of a broad chargeable response that could be attributed to sulphide mineralisation. This anomalism occurs at depths below 150 metres below the range of the previous RC drilling and will be tested once clearances to drill have been obtained. Managing Director Nathan McMahon said, “The Mt Angelo Project has enormous upside and we are still in the very early stages of exploration. We are very encouraged by the preliminary metallurgical testwork results to date and the next round of assay results are expected soon. We are keen to commence drilling the next round of targets as soon as possible to extend our knowledge of the Mt Angelo project”.