Cazaly Reports 4m at 6.6g/t Gold and $3.5M Placement Boost

Strong Gold Intercepts at Goongarrie

Cazaly Resources Limited has made significant strides in its exploration efforts during the December 2025 quarter, particularly at its flagship Goongarrie Gold Project in Western Australia. The company’s aircore drilling program revealed multiple high-grade gold intercepts along a 1.3-kilometre corridor, including standout results such as 4 metres at 6.6 grams per tonne from surface and 4 metres at 3.0 grams per tonne from 40 metres depth. These results extend known mineralisation by 660 metres south of the Star of Goongarrie deposit and delineate a coherent gold trend exceeding 1 gram per tonne between Goongarrie Lady and Jenny’s Reward.

The drilling campaign, which expanded to cover an additional 7 kilometres of the Menzies shear zone, has been instrumental in refining the geological understanding of the area. A recent lithostructural interpretation completed with external consultants has identified key structural controls and favourable lithologies, particularly brittle, late-stage faults that appear to localise gold mineralisation. This interpretation will guide future drill targeting, with a focus on intersections between northwest-trending structures and north-south shears within the Bardoc Tectonic Zone.

Romano Project Earn-In Agreement

In a strategic move to optimise its portfolio, Cazaly entered into an earn-in transaction with Dundas Minerals Ltd over the Romano gold project, located adjacent to the significant Gruyere gold mine. Dundas will earn up to an 80% interest by spending $2 million on exploration over two years. The deal provides Cazaly with immediate value through $150,000 in cash and $350,000 in Dundas shares upfront, plus milestone payments tied to tenement grants. Importantly, Cazaly retains a free-carried 20% interest through to the completion of a positive feasibility study, maintaining exposure to potential upside while focusing its resources on Goongarrie.

Financial Position and Future Plans

Financially, Cazaly strengthened its position with a well-supported $3.5 million placement priced at 3 cents per share, including a $100,000 subscription from management pending shareholder approval. The company ended the quarter with $5.1 million in cash and investments, providing a solid runway for its upcoming exploration programs.

Looking ahead, Cazaly plans to commence reverse circulation drilling early in the January 2026 quarter to test high-grade extensions at key prospects such as Duchess and Duke of York, as well as along the newly identified 1.3-kilometre mineralised corridor. Additional aircore drilling will infill and extend these trends, with a particular focus on untested ultramafic units west of Goongarrie. Complementary geological mapping and geophysical surveys will continue to refine targets and support ongoing exploration efforts.

Broader Project Portfolio

Beyond Goongarrie and Romano, Cazaly maintains a diverse portfolio including the Halls Creek Copper Project in Western Australia, which hosts a maiden mineral resource estimate of 97.3 million tonnes containing 285,000 tonnes of copper. While no field activities were reported this quarter, the project benefits from proximity to established deposits and ongoing joint venture studies.

Internationally, Cazaly’s wholly owned Abenab North Rare Earth Elements and Base Metal Project in Namibia awaits exploration licence grant, with promising historical drill intersections. In Canada, the Carb Nb-REE Project in Ontario continues to show potential for rare earth and niobium mineralisation, with community engagement progressing towards an approved drilling program.