cazaly dissapointed by decision to uphold

ASX Release
21st April 2006
CAZALY DISSAPOINTED BY DECISION TO UPHOLD
SECTION 111A APPLICATION FOR SHOVELANNA
Cazaly Resources Ltd (ASX: CAZ) has today received written notification from the office of
Minister for Resources John Bowler that the Section 111A application for the Shovelanna Iron Ore
Project, located in the Pilbara region of Western Australia (ELA 46/678), has been upheld.
The Section 111A application was made by Rio Tinto Limited to the former Minister for State
Development Alan Carpenter on 21st September 2005. This followed an application for E46/678 by
Cazaly Resources’ wholly owned subsidiary Cazaly Iron Pty Ltd (formerly Cyril Resources Pty Ltd)
on 29th August 2005.
Rio Tinto previously held title to the area under tenement E46/209 which lapsed on 26th August
2005. No extension of title was lodged with the Department of Industry and Resources within the
prescribed time. Following the lodgement of the Section 111A application, the Minster was
required to rule on what was “in the best interests of the State” regarding the ownership of this
exploration licence.
Cazaly Resources Managing Director Nathan McMahon said, “We are extremely disappointed with
the decision by the WA State Government to uphold the Section 111A application made by Rio
Tinto for the Shovelanna Iron Ore project”.
“It is extremely difficult to reconcile this decision with what is in the best interests of the State. This
could be interpreted as a direct win for big business over anybody else wanting to get on with the
business of finding and developing the State’s resources. The Mining Act as we know it may have
been struck a fatal blow”.
“This decision goes right against the very values that underpin the WA Mining Act, which is held
up by the industry and all its stakeholders to be pro development, transparent in its actions and
most of all fair.”
“Rio Tinto has clearly made no serious effort to develop the Shovelanna resource in the past and it
would seriously bring into question the integrity of the system if this decision expedites any fast
tracking of development by them”.
Cazaly and its partners have always maintained that they have, not only the financial and technical
ability, but more importantly the will and the commitment to develop the project in the best
interests of their shareholders, the Pilbara region and the State of Western Australia.
“We have been overwhelmed by the unwavering support we have received from our shareholders
and the various members of the WA mining community and we would like to thank everyone for
this support.”
Since lodging the application for this project, Cazaly had continued to plan for an accelerated
development of the Shovelanna Iron Ore Project to capitalise on the current buoyant iron ore
market conditions to create significant economic benefits for the WA economy.
Cazaly had previously announced plans for a A$6 million exploration program with JV partner
Echelon Resources, secured an offer for project financing from leading resource finance group
Investec and signed an MOU with BHP for the off-take from this project.
The Company will be reviewing the Ministerial advice in detail before deciding on the next, if any,
course of action.
Yours Sincerely,
Nathan McMahon
Clive Jones
Joint Managing Directors