"Won't be 60 cps because CAZ spun it out for next to nothing and...

"Won't be 60 cps because CAZ spun it out for next to nothing and have the barest of holdings.

CAZ board been around for years and it was worth virtually nothing to them."

Next to nothing and barest of holdings you say?!

On 16 June 2010 the Company entered into a conditional contract to purchase a 100% interest in Hayes Mining Pty Ltd from
Cazaly Resources Limited. The contract is subject to the following pre-completion conditions:
- The Company obtaining in principle approval from the ASX to have its securities quoted (which is the subject of the
prospectus).
- Hayes Mining Pty Ltd obtaining consent of the Department for the transfer of certain tenements to it.
- Cazaly Resources Limited unconditionally forgiving the debt owed to it by Hayes Mining Pty Ltd.
The consideration for the purchase is detailed below:
- Cash consideration of $100,000 (excluding GST) due upon signing of a letter agreement prior to the drafting of the
contract. This was paid on 5 May 2010.
- An initial extension payment of $100,000 cash (excluding GST) to extend the completion cut off date to 30 September
2010. This was paid on 31 August 2010. In addition, the Company has also made a further extension payment of
$100,000 on 30 September 2010 to extend the completion date to 31 October 2010. If required, the Company is able to
extend the completion date to 30 November 2010 by the payment of $100,000.
- Cash consideration of $1,280,000 (excluding GST) due no later than 7 business days after the satisfaction of the above
pre-completion conditions.
- Shares to the value of $1,440,000 (7,200,000 shares at $0.20 each) to be issued to Cazaly Resources Limited.
Contingent payments as detailed below may also be required to be made to Cazaly Resources Limited:
- $400,000 cash within 14 days of successful completion of 2,500 metres drilling.
- $1,600,000 cash following the first commercial production of gold, due and payable in 8 quarterly instalments of
$200,000 commencing 3 months after the date of first commercial production of gold.
- $2,400,000 cash within 14 days of recovering 140,000 ounces of gold from a specific number of exploration tenements
within this tenement package.

Royalty payments of $40 per ounce of gold, to a maximum of 75,000 ounces ($3,000,000), are payable to Cazroy Pty Ltd (a
company controlled by Cazaly Resources Limited). Royalty payments are calculated quarterly and payable within 30 days after the
end of quarter. In addition, upon completion of the above mentioned royalty obligation, the Company is required to pay to Cazroy
Pty Ltd a further quarterly royalty calculated as 2% of the multiple of the average sales price received from the sales of all gold in
the quarter plus $2 and the production for that quarter from a specific number of tenements within this tenement package.