Annual mineral exploration report for EL 25651 Kurinelli, for the period 27 July 2007 to 26 July 2008

Abstract

EL 25651 was applied for by Sammy Resources Limited, a wholly-owned subsidiary of Cazaly Resources, as part of the formation of the Kurinelli Project in the Lower Davenport Region of the Tennant Creek Inlier. The tenement is believed to be prospective for gold and copper. No activity was conducted by Cazaly during the initial year of the lease, except for open file data research. On-ground activities were deliberately postponed until the full package of tenements, including the highly prospective EL 26398, were granted. This tenement was refused grant late in the report year forcing the company to reconsider the exploration strategy in the region. Cazaly is currently reviewing its land position including seeking expressions of interest from potential Joint Venture partners. A work program and budget for the coming report year will be constructed once the review process is complete.