Cazaly Resources Limited announced that infill surface sampling is to commence next week at the Kaoko Project in Namibia. Cazaly's recent data review highlighted the presence of a large lithium in soil anomaly in the north-eastern part of the project area stretching over 12km. The anomaly is currently defined with broad surface samples collected across a 1km grid with the sampling program planned to infill the highly anomalous areas to 200m by 50m spacing.

Grab samples and or rock chips will also be collected to provide further information on the nature of the anomaly which is in excess of 100 sq.km. At this early stage, the potential deposit style is considered to be sedimentary hosted. Sedimentary lithium deposits accumulate as lithium is transported into basins where it reacts with other minerals creating chemical bonds weaker than that found in spodumene (pegmatites) and stronger than those found in brines.

The moderate strength of the lithium chemical bonds in sediments when compared to pegmatites provides opportunities for simple low-cost processing with no comminution circuit (crushing and grinding) and simple reagents. The Project is located in northern Namibia, approximately 800km by road from the capital of Windhoek and approximately 750km from the port of Walvis Bay. There is excellent infrastructure in the region with the Project being only ~50 km from the regional capital of Opuwo, with an airport, good bitumen roads, and access to the 320 MW Ruacana hydroelectric power station.

Transmission lines run through both the western and eastern parts of the Project.