Cadan Res Corp. (WKN: A0YEAF)

Using the 100% company owned LY 24 drill rig, the first hole, Diamond Hole TGD 108, was drilled to 139.10m and was cored from the surface. The second hole, TGD 109, was drilled to 148.80m and was also cored from surface. In-house preliminary XRF assay results have now been received for TGD 108, with the defined mineralized zone averaging 0.65% Cu from 0 to 106meters. High-grade magnetite skarn was intersected from 33m to 64m and assayed 1.21% Cu for the 31meters. A complete report will be issued when assay results from a certified laboratory have been received.

Visual inspection of the high-grade skarn zone, from the core, shows magnetite and garnet skarn hosting chalcopyrite and chalcocite mineralization (To see Figure 1 and 2, please visit the following link: media3.marketwire.com/docs/cxd419i.pdf).

Cadan is a gold and copper exploration and development company with assets in Mindanao, Philippines. The Company's two properties are the T'Boli gold and silver mine, currently in final development of small-scale production, and its 9,000 ha Comval gold and copper property.

Qualified Person and Quality Control and Assurance

Technical aspects of this news release were prepared and verified by William Donald Goode, a member of the AusIMM and Technical Director of Cadan Resources. He is the qualified person as required by NI 43-101, and is the technical person responsible for this news release. The qualified person has verified the data disclosed in this news release, including sampling, analytical and test data underlying the information and opinions contained in this news release.

Quality Assurance and Quality Control (QA/QC)

Assays reported have been verified by the Company's QA/QC procedures. All samples have been prepared & assayed by McPhar Geoservices (Phil) Inc., in Manila, an ISO 9001 certified laboratory, with the inclusion of appropriate blanks and standards for which 1.5 - 2kg samples were pulverized to 90%, passing 200 mesh or -75 microns. Assays for gold were 50g fire assay, (0.05 ppm), AAS finish. Samples were assayed for copper, iron and sulphur by ICP.

The Company also announces it has granted an aggregate of up to 2,975,000 stock options at a price of $0.65 to directors and consultants to the Company. The options are exercisable for a period of up to 5 years.

On behalf of the board of directors,

Robert G Butchart, President / CEO

For further information visit our website at www.cadanresources.com or email: info@cadanresources.com.

Hole 109   827350  845750   415.0    60       95      2   100   0.32%     -
--------------------------------------------------
Hole 110   827401  845775   453.8    62       91      4    25   1.59%   0.4
--------------------------------------------------
Hole 111   827451  845738   465.9    60       93      2    71   0.30%     -
--------------------------------------------------
Hole 112   827508  845721   449.1    59       91      2    79   1.26%   0.4
--------------------------------------------------
Hole 113   827564  845727   487.5    59       90      2   137       #     #
--------------------------------------------------
Hole 114   827456  845766   470.9    81       87     31    37   0.29%     -
--------------------------------------------------
Hole 115   827350  845771   418.9    60       92      4    38   0.41%     -
--------------------------------------------------
                                                    49    52   0.33%     -
--------------------------------------------------
# certified laboratory results still outstanding.

Drilling completed to date, combined with open pit bench sampling has defined a massive magnetite - chalcopyrite/chalcocite skarn strike length of some 350m, with true widths ranging from 65m to 25m. Surface mapping of magnetite has extended the strike length some 300m to the south. Recent drill site preparation has uncovered massive magnetite - chalcopyrite/chalcocite mineralization 100m to the north.

The massive magnetite - chalcopyrite/chalcocite mineralization in the Maangob skarn has been previously reported in the News Release dated June 30th 2009 (38m @ 1.72% copper, 30m @ 0.98% copper, 105m @ 0.52% copper).

A number of other skarns have been mapped and new discoveries are ongoing. The total skarn potential associated with the large tonnage porphyry copper deposits is yet to be determined. Multiples of announced skarn potential is a realistic expectation.

Drilling of the large tonnage porphyry potential is ongoing, with the recent completion of the deepening of hole TGD28 to some 500m.

Cadan is a gold and copper exploration and development company with assets in Mindanao, Philippines. The Company's two properties are the T'Boli gold and silver mine, currently in final development of small-scale production, and its 9,000ha Comval gold and copper property.

Qualified Person and Quality Control and Assurance

Technical aspects of this news release were prepared and verified by William Donald Goode, a member of the AusIMM and Technical Director of Cadan Resources. He is the qualified person as required by NI 43-101, and is the technical person responsible for this news release. The qualified person has verified the data disclosed in this news release, including sampling, analytical and test data underlying the information and opinions contained in this news release.

Quality Assurance and Quality Control (QA/QC)

Assays reported have been verified by the Company's QA/QC procedures. All samples have been prepared & assayed by Mcphar Geoservices (Phil) Inc in Manila (an ISO 9001certified laboratory) with the inclusion of appropriate blanks and standards for which a 1.5 - 2kg sample was pulverized to 90%, passing 200 mesh or -75 microns. Assays for gold were 50g fire assay, (0.05 ppm), AAS finish.

On behalf of the board of directors,

Robert Butchart, President / CEO

Excavation of deposits will involve the underground or tunneling method.

The feasibility study for the T’boli gold and silver project started in 2007, although exploration activities kicked off a long time ago.

Hernani Abdon, records and licensing division chief of the Mines and Geosciences Bureau-Region 12, said Friday the firm’s mining feasibility declaration has already been endorsed to the national office.

“The main office will be the one to give the final approval,” Abdon said.

Along this process, the main office has asked the mining firm to submit lacking requirement which they have already complied, he added.

Dominador Siloterio, T’boli information officer, said the company has set up mining facilities in the town in preparation for commercial production.

In 1997, Tribal Mining acquired from the government a mineral production sharing agreement (MPSA) covering 85 hectares. The agreement has a lifespan of 25 years.

The MPSA area, however, straddles the “minahang bayan” or small-scale mining area, covering 21 hectares, that was declared over a decade ago by the provincial government.

The Court of Appeals earlier ruled that the conflict over rights between the mining firm and the small-scale miners involving the disputed area shall be resolved by a Regional Panel of Arbitrators, which is a quasi-judicial body annexed to the Department of Environment and Natural Resources. (Bong S. Sarmiento / MindaNews)

www.mindanews.com/top-stories/2011/10/15/...in-t%E2%80%99boli/

Obige Topergebnisse, zusammen mit den unterstützenden Proben ergaben eine “Auszahlungstrecke” von 47 m mit durchschnittlich 12,2 g Gold über eine Weite von 2,0 m. Die „Auszahlungsstrecke“ läuft von 0 – 47 m. Die nächsten 52 m ergaben eine untergeordnete Erzgradmineralisierung. Die letzten 10 m zeigen ansteigenden Grade die dann in das prospektierte Zielgebiet hinein laufen. Das prospektierte Zielgebiet hat eine Streichlänge von 200 m. Der Vortrieb dieser zweiten Strecke lässt vermuten, dass das Venensystem höher als erwartete Ergebnisse produzieren wird als die NI 43-101 Ressource vermuten liess. “Diese Zahlstrecken werden uns helfen die Produktion zu starten sobald wir die letzten Genehmigungen erhalten haben.“ sagte Robert Butchart, CEO und President.

Alle berichteten Proben wurden präpariert und verprobt auf dem Unternehmenseigenen Labor auf der Mine. Die Proben wurden getrocknet, Vorgemahlen und Pulverisiert auf 90% minus 200 Gewebeeinheiten. Die Goldproben wurden mit 50gm Feuerbeprobt und einem AAS Abschluss.

Obige technische Informationen wurden angefertigt und geprüft von William Donald Goode, Mitglied der AusIMM und Technischer Direktor von Cadan Resources. Herr Goode hat die Daten bestätigt die in dieser Pressemitteilung stehen inklusive der Proben, der analytischen und der Testdaten die diesen Informationen zu Grunde liegen.

Im Namen der Geschäftsleitung und des Direktoriums

“Robert G Butchart”

Robert Butchart
President / CEO

--  when (and if) MGL's share price trades at or above AUD$1 for 30
   consecutive days, MGL will issue to Cadan a further 2,600,000 shares;
   and

--  subject to certain conditions being met within 24 months of closing of
   the Transaction (which period may be extended by up to a further 24
   months) MGL will pay a further AUD$1,000,000 to Cadan.

Upon closing of the transaction with MGL, Cadan will retain a 20% free carried equity interest in PMC, which cannot be diluted until MGL has expended AUD$48 million in exploration and development costs on the Comval Project. Thereafter Cadan and MGL will be required to contribute to further costs in proportion to their interest or be diluted.

In addition to the above, on closing MGL will be granted an option to acquire an 80% interest in the Batoto Gold/ Silver project held by Cadan on the following terms:

--  MGL must exercise the option within 9 months of closing; and

--  if MGL exercises the option to acquire an 80% interest in the Batoto
   Gold/ Silver project, it must pay to Cadan:$3,000,000; and issue a
   further 5,200,000 shares to Cadan.

Robert Butchart, President and CEO of Cadan stated "MGL together with its financiers is a group with the demonstrated capability of raising the significant funds that are required to properly explore and develop both the porphyry copper and the gold stock work assets at Compostela Valley. This represents an excellent opportunity for Cadan to retain a substantial interest in the project without having to contribute funding until the project is significantly advanced. Cadan will be able to focus its resources and efforts to the advancement of Cadan's core asset, being the T'Boli gold-silver project and mine."

Mr. Andrew Maurice, Managing Director of Mining Group, stated that "the proposed acquisition represents an exciting phase in the Mining Group's growth and is consistent with the company's objective of acquiring commercially significant mineral properties that can readily be brought into production. The Comval Project's tenement area covers 4310 hectares, and has had over 24,000 metres of drilling completed, which we intend to review and reinterpret with the aim of defining a resource."

The transactions are subject to various conditions precedent, including MGL obtaining shareholder approval and regulatory approval, and in the case of Cadan the acceptance of the TSX Venture Exchange.

   AUD$1,000,000 of the cash payment will be satisfied by applying the
   proceeds of a prior loan from MGL to Cadan in the same amount, and
   deeming the loan repaid;

--  Cadan will be issued 2,000,000 ASX listed options in MGL, with an
   exercise price of AUDS$0.20 each, subject only to Cadan paying to MGL an
   aggregate issue price for the options of AUD$0.01 per option
   (AUD$20,000), which may be offset against the Facilitation Fee;

--  Cadan will be issued 500,000 ordinary shares in MGL at a price of
   AUD$0.20 per share subject only to Cadan paying to MGL the subscription
   price for the shares of AUD$100,000, which may be offset against the
   Facilitation Fee;

--  MGL and Cadan will enter into a Shareholders' Agreement setting out
   their respective rights as co-owners of PMC and certain provisions
   governing the management of the project. The Shareholders' Agreement
   will include the following key terms:


   --  MGL must incur AUD$48 million in qualifying expenditures over a
       period of five years (the "Sole Funding Period"), and conduct
       required minimum activities in years 1 and 2 of the Sole Funding
       Period, as summarized below:

       A. the qualifying activities for years 1 and 2 of the Sole Funding
       Period are as follows:

       Year 1
          - no less than 10,000 meters of drilling on the Project
       Tenements;

          - the completion of an initial JORC compliant statement of
       Mineral Resources (with an obligation to provide same in a NI 43-101
       compliant format; and

          - the completion of a Scoping Study, re-logging of existing data
       and reconfiguration of existing sampling

       Year 2:
          - no less than 12,500 meters of drilling on the Project
       Tenements;

          - and ommencement or procurement of commencement of a definitive
       feasibility study relating to the Project.

       B. Annual qualifying expenditures on the project must comply with a
       minimum expenditure condition as follows:

--------------------------------------------------
                      Qualifying                     Cumulative Qualifying
Year            Expenditure (AUD$)                        Expenditure (AUD$)
--------------------------------------------------
1                       5,000,000                                      None
--------------------------------------------------
2                       5,000,000                                      None
--------------------------------------------------
3                       5,000,000                                15,000,000
--------------------------------------------------
4                      15,000,000                                30,000,000
--------------------------------------------------
5                      18,000,000                                48,000,000
--------------------------------------------------

The cumulative qualifying exploration expenditures must be incurred, or funded in cash contribution to PMC in lieu thereof, within the time frames provided above, failing which MGL's interest will be diluted at the rate of 1.1% per AUD$1 million in deficiency or part thereof. The time frames for incurring the cumulative qualifying expenditures may be extended by an additional year in certain limited circumstances related to delays in approvals or permits to the extent they are beyond the control of MGL.

Following the Sole Funding Period, Cadan and MGL will be required to contribute to further costs in proportion to their interests or their equity interest will be subject to dilution on a straight-line basis.
--  Cadan will be initially entitled to nominate one director to the board
   of PMC (in addition to its right to nominate two directors to the Board
   of MGL); Various pre-emptive rights on sale or transfer of shares and
   minority shareholder protections relating to certain project decisions.


The Formal Agreements also provide that the following additional payments will apply:
--  when (and if) MGL's share price trades at or above AUD$1 for 30
   consecutive days, MGL will pay a further facilitation fee to Cadan of
   2,600,000 shares;

--  subject to certain conditions being met within 24 months of Closing
   (which period may be extended by up to a further 24 months) MGL will pay
   a further facilitation fee of AUD$1,000,000 to Cadan.


Closing of the transactions contemplated in the Formal Agreements is subject to various conditions precedents, including transferring certain assets of PMC to other Philippine entities affiliated with Cadan.

Option to Acquire 80% of the Batoto Gold/Silver Project

The Formal Agreements provide that on Closing Cadan will grant MGL an option to acquire an 80% interest in the Batoto Gold/ Silver project held by Cadan on the following terms:
--  MGL must exercise the option within 9 months of Closing;

--  if MGL exercises the option to acquire an 80% interest in the Batoto
   project, it must pay to Cadan AUD$3,000,000 and issue a further
   5,200,000 shares of MGL to Cadan; and


If MGL exercises the option, it must also incur qualifying exploration expenditures of AUD$30 million or have its interest diluted at the rate of 1.5% for each AUD$1 million shortfall (or part thereof). MGL will free carry Cadan's 20% interest in Batoto until it has spent expended the qualifying exploration expenditures as follows:
--------------------------------------------------
                                       Qualifying Expenditure
            Year                                        (AUD$)
            --------------------------------------------------
            1                                       3,000,000
            --------------------------------------------------
            2                                       5,000,000
            --------------------------------------------------
            3                                       6,000,000
            --------------------------------------------------
            4                                       8,000,000
            --------------------------------------------------
            5                                       8,000,000
            --------------------------------------------------


The parties have agreed to prepare and execute a separate agreement in relation to the Batoto Option.

On behalf of the board of directors,
Robert Butchart, President / CEO

This transaction represents an important step in the implementation of a new strategy by Cadan, namely to focus on the more advanced and high grade T'Boli Gold and Silver Project, also located on the island of Mindanao, Philippines. The Company intends to invest in targeted drilling with the objective of expanding on the present Indicated and Inferred Resources at T'Boli and to work toward the grant of permits that will allow the commencement of gold production.

Central to its strategy, is that while Cadan's management and financial resources are freed up to focus on T'Boli, the Company retains exposure to its Comval assets through arrangements that will see third parties carry out and fund extensive development activities. In this regard, Cadan will retain a free carried 20% interest in the Comval assets until AUD$48 million is expended.

MGL will be required to incur AUD$48 million in qualifying expenditures over a period of five years (which period may be extended by up to a further 18 months in certain limited circumstances, the "Sole Funding Period") and conduct required minimum activities or minimum investments into the project operating company over the next 2 years, including:
--  a combined 22,500 metres of drilling;
--  generation of an initial NI 43-101 compliant resource estimate;
--  the completion of a scoping study to review geological, metallurgical
   and engineering data as part of a financial analysis to assist with
   determining the most appropriate development options moving forward; or,
--  if the commitments above are not met within the first 2 years, AUD$10
   million is to be invested into the project operating company.


Failure to meet these commitments will result in MGL forfeiting equity in the project under agreed formulas set out in the formal agreements(1). Cadan believes the combined effect of these measures will ensure rapid progress is made with the project, adding value to Cadan's retained interest, while it focuses on T'Boli.

In addition, as part of the agreed consideration received, Cadan will become a significant shareholder of MGL, with an initial 3.1 million shares and 2.0 million options (exerciseable on or before July 1, 2014 at AUD$0.20 or approx CDN$0.21 at an exchange rate of CDN$1.00=AUD$0.95). Subject to certain conditions agreed with MGL, Cadan's equity position in MGL could increase to 10.9 million MGL shares and 2.0 million options in the circumstances set out below:
--------------------------------------------------
                        Prescribed Event                            Million
--------------------------------------------------
- initial number of shares issued to Cadan at completion (January
 17, 2012)                                                           3.1(2)
--------------------------------------------------
- if MGL's share price trades at or above AUD$1.00 for 30
consecutive days(3)                                                     2.6
--------------------------------------------------
- if MGL exercises option over Batoto Gold Project                       5.2
--------------------------------------------------
                       Total possible shares in MGL held by Cadan      10.9
--------------------------------------------------
- options acquired at completion                                         2.0
--------------------------------------------------
           Total possible shares and options in MGL held by Cadan      12.9
--------------------------------------------------


Based on MGL's published Appendix 3B dated January 17, 2012 (available from www.asx.com.au), Cadan's fully diluted position in MGL upon the receipt of all of the shares, and the exercise of all options on issue would be approximately 17%.(4)

Therefore, Cadan stands to benefit, both through its continuing free carried direct project interest, as well as indirectly through its position in MGL if the significant potential for upside in value at the Comval projects is realised. Based on the last traded price of MGL shares and options on ASX, the current value of Cadan's stake in MGL (held today) is approximately CDN$3.0 million and upon the issue of an additional 7.8 million shares as outlined above, its pro forma value at current prices grows to approximately CDN$8.0 million(5).

Other Terms of Transaction

Cadan has now received the AUD$3.0 million cash payment as contemplated by the formal agreements of which AUD1.0 million was paid by applying a cash advance previously received by Cadan from MGL. A further AUD$20,000 was applied to acquire 500,000 MGL shares at AUD$0.20 each and 2.0 million MGL options at AUD$0.01 each. Therefore, the net cash received by Cadan at completion is approximately AUD$1.88 million (approximately CDN$1.95 million based on exchange rate of CDN$1.00 = AUD$0.95).

Contingent upon certain conditions being met, Cadan may receive a further AUD$1.0 million in cash within 24 months of closing (which period may be extended by up to a further 24 months).

In accordance with the agreed terms, Cadan is now entitled to nominate two directors to the Board of MGL and intends to do so as soon as practicable.

Focus on T'Boli Gold and Silver Project

The proceeds from the MGL transaction together with the recent private placement of CDN$2.45 million (Company news release December 20, 2011) and the issue of CDN$2.5 million in Convertible Notes (Company news release December 23, 2011) have raised an aggregate of CDN$7.95 million before transaction costs. The Company intends to apply available funds towards the continued drilling and development as well as the completion of the permitting process at T'Boli to allow for commencement of small scale production and working capital requirements. The Company also intends to proceed with its proposal to seek a dual listing of its securities on ASX during the first half of 2012. The Company hopes to be in a position to provide regular updates to shareholders on these matters, in particular, in relation to the drilling programme which the Company intends to commence during this quarter.

On behalf of the board of directors,

Robert Butchart, President / CEO