Epic : CDN

Web Site : http://www.caledonresources.com

Broker Note 1st Aug 2007 : http://www.caledonresources.com/Images/FileManager/192.pdf


About Caledon: Caledon is quoted on the London AIM market (Ticker: CDN). In 2006, the Company acquired two Australian coal projects; the Cook mine and the Minyango coal project, both situated in the Bowen Basin, Queensland. The Cook mine is host to a mineable reserve of 17 Mt of coking and thermal coal with a 10 year mine plan. On 21 March 2007, Caledon announced commencement of production at the Cook mine with targeted output to reach a 100,000 tonnes per month rate by the end of 2007 and 1.5 million tonnes per annum in 2008. On 14 March 2007, the neighbouring Minyango project resource was brought to a JORC standard of 240 million tonnes which was an increase of 17% on original estimates. Caledons aim is to develop the Minyango project to potentially increase the Companys production in the near-term to accompany its already producing Cook mine project.

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Caledon Resources PLC Interview With:
Mark Trevan Managing Director

Dated September 20, 2007

http://www.wallstreetreporter.com/page.php?page=featured&id=26736

http://www.marketwatch.com/news/story/bhp-billiton-says-coking-coal/story.aspx?guid=%7BEE4BD93C-868A-4745-8CCF-64DDC0A2AFFD%7D

BHP Billiton says coking coal demand very strong

By Alex Wilson
Last Update: 5:30 AM ET Oct 2, 2007

MELBOURNE (MarketWatch) -- BHP Billiton Ltd. (BHP.AU) said Tuesday that the coking coal market remains very strong.
BHP's marketing director for carbon steel materials, Peter Toth, said infrastructure constraints continue to limit supply and that demand from traditional customers remains strong, while China and India continue to grow.
"The underlying fundamentals of the coking coal market are very strong, and it's the strongest that we have seen for some time" he told analysts.

http://www.investegate.co.uk/Article.aspx?id=200710040701401149F

October 4 2007
Caledon Resources Plc

Caledon Resources plc ('Caledon' or 'the Company'; AIM: CDN) is delighted to announce a substantial uplift of both Resources and Reserves at its Cook Coking Coal Mine

39% increase in Cook mine Resources to 176 million tonnes in the Measured and Indicated categories

Cook mine Reserve has increased by 38% to 23.6 million tonnes

Group total JORC compliant resources have more than trebled to 416 million tonnes since readmission in 2006

Final coking coal sales figure for September amounted to 70,000+ tonnes.

Caledon is delighted to announce a substantial uplift of both Resources and Reserves at its Cook operations following an extensive study by independent consulting group, SRK. The previously stated Cook Mine Resource was 126.5 million tonnes. Further drilling has confirmed a 39% increase in Resources to 176 million tonnes in the Measured and Indicated categories. A detailed mid-term mine plan study has also substantially increased the mines Reserve. The Cook mine Reserve has increased by 38% to 23.6 million tonnes. Both Resource and Reserve statements are to the JORC standard.

The Company also takes this opportunity to update the information regarding September sales of coking coal from its 100% owned Cook mine. Final sales for the month of September 2007 totalled in excess of 70,000 tonnes. The coal was sold under existing marketing agreements at a price in line with industry expectations.

Chief Operating Officer Peter Seear said 'This latest study by independent consultants has added a further four years of mining to our mid-term mine plans, with substantial further upgrades to come in future years as drilling continues.
Caledon has taken the unusual step of planning its long term mine design and has now developed the mine plan out to 2020 with substantial additional expansion to come. In the short term we continue to focus on the implementation of the Magatar mining system as soon as possible.'

Mark Trevan Managing Director of Caledon Coal added 'Caledon now have JORC Resources of 416 million tonnes at its Minyango and Cook properties with substantially more expected to be defined as drilling continues. This is further evidence of the commitment that Caledon has made to develop these world class coking coal properties. Since Readmission on 14 December 2006, the Company's total JORC compliant resources have more than trebled to 416 million tonnes.'

Excellent!

This looks like a pump and dump exercise if ever I saw one.
Stay well clear I say!!!!

Moving up again.

Yep, well, the new system is being implemented this month, so we should get an update some time of success in doing this, and of course, once its in, then increased coal production.

You cannot be serious.
In these days of green fuel what chance has a coal mine these days?

Caledon jumps on resource upgrade
Thursday, October 4, 2007, 09:05 AM
Caledon Resources (AIM: CDN) received a boost to its share price this morning after announcing a substantial increase in the resources and reserves at its Cook Coking Coal Mine in Australia. Caledon said that the measured and indicated resource had increased by 39% to 176 million tonnes and the coal reserve had increased by 38% to 23.6 million tonnes. The brought the total JORC compliant resource to 416 million tonnes, more than treble the estimate when Caledon was readmitted after completing the acquisition of Cook from Xstrata Australia. Caledon also added that in September is sold 70,000 tonnes of coal.

Mark Trevan, Managing Director said "Caledon now have JORC
Resources of 416 million tonnes at its Minyango and Cook properties with substantially more expected to be defined as drilling continues. This is further evidence of the commitment that Caledon has made to develop these world class coking coal properties. Since Readmission on 14 December 2006, the Company's total JORC compliant resources have more than trebled to 416 million tonnes."

Shares in Caledon jumped 12% to 38 pence on the positive news.

I still think these will head south when the dust settles.

transco, you are entitled to your opinion, I presume you have no interest in this company!, so whats your point??

My point it is dangerous to invest in companies like Caledon where web sites like these can pump up a share price and bring about short term spikes only to see it come to nothing later.
This is a pump and dump stock take my word for it.

Punteres beware!!!!!!!
imho sorry goal just my view - time will tell

Errrr pump and dump stocks tend to be smal illiquid shares with no current real business. Certain people buy into them, and then ramp them like mad, and with the stock being illiquid, the SP will suddenly jump massively to which they sell out. A pump and dump cycle is a couple of weeks, no more.

However, Caledon has a business plan, it has an ongoing business, its now producing and selling coking coal, and if their expansion plans come out fine, then in a short period of time the production output will make the present market cap look undervalued imv.

PP i agree with you on the business plan, they are believe to be testing the new equipment at present, which should push up tonnage quite considerably. And of
course theirs a question of reserves which have been increased of late to the Cook
Project and we await drilling results form Minyango, which could be a real ice topping?
cyril

Papal,

Sorry old boy but all aim stocks are as you describe small illiquid thats why they are there.
Caledon is a perfect example of a pump and dump exercise.
If the new reserves were as they say why does the SP not reflect it?
Reason - Australia is floating on coal (100 years of reserves) so its hardly surprising they have found more - on the other hand its a dying fuel and has no long term future.

Sorry but investors stay clear - if im wrong I will eat my hat.

IMHO

transco,
CDN are producing Coking Coal for which their is a world shortage along with a growing demand and will be in the growing future.
How would you like your hat seasoned?
cyril

Exactly cyril, the demand for coking coal is far outstripping supply.

I respect your opinion but as I say Australia has no shortage of coking coal.
The continent is floating on it - 100 years of reserves.
Its the cost of extraction thats key and there are other more well managed companies quoted on the Ausy market that are a much better bet.
Caledon is a very very small player with little future.

IMHO

transco, you have hit the nail on the head.

Thats what Caledon are all about, reduced cost of extraction makes previous uneconomic mines, once again very profitable.

Have you noted the history of Cook ?

Prices have gone up - I accept.
However there are other huge players in the field and Caledon are small fry.
Its just not worth the risk investing in a company that recently mined for gold in China.
I mean.... you can not be serious!!

Small fry, well, they have the sales agreement in place with Xastra.......what makes them small fry ?

It matters not about what they were, markets are forward looking, not historical, and the future looks like good coking coal production at around 100K tonnes per month.

Thats around 9.6m US dollars a month sales revenue, on line by around year end.

Not bad is it.