Cazaly Resources : Exploration Update - Ashburton & Yabby Projects

ASHBURTON & YABBY PROJECTS

EXPLORATION UPDATE

ASX ANNOUNCEMENT

25 July 2022

onlyCazaly Resources Limited (ASX: CAZ, "Cazaly" or "the Company") is pleased to announce that exploration has advanced at its Ashburton Project, located in the Pilbara region of Western Australia; and at the Yabby Project, in the north-eastern goldfields of Western Australia, near Laverton.

ASHBURTON PROJECT

useAn Airborne Electromagnetic (AEM) Survey is expected to be flown this week across several targets at the Ashburton Project, and in addition, surface sampling of fine fraction soils and streams has recommenced.

Cazaly holds the rights to a major land position covering more than 2,450km2 in the Ashburton Basin. The project covers major regional structures considered to be prospective for large mineralised systems.

Airborne Electromagnetic Survey personalFor

Figure 1. Versatile Time-Domain Electromagnetic (VTEM TM Max) survey blocks at the Ashburton Project.

The AEM survey is designed to fly 275-line kilometres across three blocks. Block 1 will test an area along the Nanjilgardy Fault with anomalous historical surface geochemistry. The Nanjilgardy fault is a major regional scale structure marking the boundary between the Capricorn Orogen and the Pilbara Craton. The structure is

L3, 30 Richardson Street West Perth WA 6005 PO BOX 396 West Perth WA 6872 Ph: [phone] www.cazalyresources.com.au

associated with significant deposits including Black Cat's (ASX: BC8) Paulsen's gold mine and Kalamazoo's

(ASX: KZR) Mount Olympus gold mine. Blocks 2 and 3 will refine broad TEMPEST AEM anomalies identified in publicly available government survey data. Block 2 is also coincident with anomalous gold results at the New Finish prospect. Survey design specifications below:

	Loop Diameter		35 m		Horizontal Gradiometer	No
	Pulse		7ms		Helicopter survey Height	270 ft
only	Receivers		Z, X		Full Waveform	Required
Fine Fraction Surface Sediment Sampling

Following a long period of wet weather in the Ashburton, including 111mm rainfall in May, the ground has sufficiently dried out to allow for the collection of ≈600 fine fraction soil and stream sediment samples across untested areas (Figure 2). This work will complete the surface geochemical sampling programme that commenced in the December '21 quarter with the collection of 1,211 surface samples. The analytical results will:

use	• provide a regional scale geochemical database across the tenement package,
	• refine, previously identified structural targets areas, and
	• provide sufficient information across the vast 2,450km2 project area to prioritise gold and base metal
For personal	targets for further work.

Figure 2. Surface samples collected by Cazaly illustrate several 50km long mineralised trends.

Assay results received in the March '22 quarter (ASX announcement dated 14 March 2022) highlighted two anomalous gold-copper mineralised trends extending over 50km strike and a strong base metal mineralised trend in the southern half of the project area.

2

YABBY PROJECT

The Yabby project covers 16km2 of the highly prospective Laverton Greenstone Belt and has potential for new gold discoveries. Tenements are positioned 10km west of Laverton, and directly west of the Chatterbox shear zone host to several gold mines currently owned by Focus Minerals. In addition, the Lady Julie gold deposit,

onlylocated along strike to the south, shows encouraging signs for a newly emerging mining centre with gold mineralisation extending from surface with recent drill results including 22m @ 4.1 g/t Au from surface, and 16m @ 5.59 g/t Au from 20m (ASX: MAU, Magnetic Resources NL announcement dated 10 January 2022).

Infill Surface Geochemical Sampling

The initial surface sampling programme was completed on a 400m x 200m grid and identified several gold
mineralised trends orientated N-S to NNE on E38/3425. The recent phase of infill surface geochemical sampling
completed at the end of May 2022 included 246 samples and reduced the sample spacing to 200m x 50m across
anomalous gold trends (Figure 3). The results show well defined surface anomalies suitable for drill testing.
personaluse
For	Figure 3. Interpreted gold assay results for surface lag samples show N-NNE trending anomalies

above 3ppb gold.

Analytical results have now been received for all infill surface samples collected at the Yabby project. The N-NNE orientation of the refined gold mineralised trends is analogous to the adjacent Chatterbox shear zone host to Apollo, Whisper & Eclipse gold deposits mined by Focus in the 2010's. This provides further encouragement that these surface anomalies reflect gold in the bedrock beneath and are drill worthy targets.

3

Cazaly's MD Tara French commented "While drilling continues at our Halls Creek Copper Project, we are pleased to be progressing exploration across our other prospective land holdings throughout WA. The work at our Ashburton Project will complete our comprehensive surface geochemical database for the area. We will then be able to use this information along with any EM conductors identified in the AEM survey to rank and prioritise

onlyareas for further work. The work at our Yabby Project has refined discrete gold targets, ranking will be confirmed following a ground truthing assessment, and the best targets will be tested with Aircore drilling."

ENDS

For and on behalf of the Cazaly Board

-----------------------------------------------------------------------------------------------------------------------------

For further information please contact:

Tara French (MD) / Clive Jones (Executive Director) useCazaly Resources Limited

ACN 101 049 334

Tel: [phone] E: [e-mail]: www.cazalyresources.com.au

Competent Persons Statement

The information contained herein that relates to Exploration Results is based upon information compiled or reviewed by Mr Don Horn, who is an employee of the Company. Mr Horn is a Member of the Australasian Institute Geoscientists and has sufficient experience which

is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify personalas a Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Horn consents to the inclusion of his name in the matters based on the information in the form and context in

which it appears.

Forward Looking Statement

This ASX announcement may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Cazaly's planned exploration program(s) and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may", "potential," "should," and similar expressions are forward looking statements. Although Cazaly Resources believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

For

4

APPENDIX 1 - Yabby Geochemical Surface Sampling

JORC Code, 2012 Edition - Table 1

Section 1 Sampling Techniques and Data

	Criteria		JORC Code explanation		Commentary
only		Nature and quality of sampling (e.g., cut		First pass reconnaissance geochemical sampling
	Sampling
	techniques		channels, random chips, or specific specialised		commenced on the Yabby Project in early 2022.
			industry standard measurement tools		A surface lag sampling program was completed.
			appropriate to the minerals under investigation,
			such as down hole gamma sondes, or handheld
			XRF instruments, etc). These examples should not
use		be taken as limiting the broad meaning of
	sampling.
	Include reference to measures taken to ensure		Lag sampling was carried out over the entire
			sample representivity and the appropriate		tenement at a nominal 400 x 200m spacing or
			calibration of any measurement tools or systems		200m x 50m spacing. Field duplicate samples
			used.		were collected at a rate of 2 in 100 and
					standards inserted at a rate of 3 per 100
					samples.
personal		Aspects of the determination of mineralisation		Lag samples were submitted to Intertek
	that are Material to the Public Report. In cases		laboratories in Perth for pulverisation and suite
	studies.		of multi-element analyses utilizing aqua regia
			where 'industry standard' work has been done
			this would be relatively simple (e.g., 'reverse		digest (Intertek method - AR10/MS33).
			circulation drilling was used to obtain 1 m
			samples from which 3 kg was pulverised to
			produce a 30 g charge for fire assay'). In other
			cases, more explanation may be required, such as
			where there is coarse gold that has inherent
			sampling problems. Unusual commodities or
			mineralisation types (e.g., submarine nodules)
			may warrant disclosure of detailed information.
	Logging		Whether core and chip samples have been		Brief geological notes were collected by the
			geologically and geotechnically logged to a level		sampler during lag collection including brief
			of detail to support appropriate Mineral Resource		geological notes.
			estimation, mining studies and metallurgical
For
	Whether logging is qualitative or quantitative in		Logging is qualitative with lithology, regolith and
	nature. Core (or costean, channel, etc)		relative abundances of quartz-iron-rock noted.
	photography.
	The total length and percentage of the relevant		A descriptive log was collected for each sample
	intersections logged.		location.
	Sub-sampling		For all sample types, the nature, quality, and		Lag samples were collected at size fraction of -
	techniques and		appropriateness of the sample preparation		6mm/+2mm, samples were pulverised at the
	sample		technique.		laboratory (Intertek method - SP01) to -75μm,
	preparation				considered to be industry standard.
			Quality control procedures adopted for all sub-		Duplicate samples were collected at the rate of 2
			sampling stages to maximise representivity of		per 100 samples.
			samples.
				5