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

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.

3M X trade.

Might be the seller now clear, and the overhang gone ???

ok lots of coal in Australia - tell us something we dont know!!

Could be an interesting week coming up, with CDN holding presentations in
London?
cyril

I still dont see any upside!!

The big question remains over the Nov 15th Minyango final payment, given we have not see the Feasibility study, then as per the announcement it looks like a 3 month delay will come in, pushing this back to Feb 15th 08 - which would be good as it allows production and cash flow to grow.

This would also be good when you consider the smaller payment due for the loan notes in December, as it takes the pressure off there too.

A number of people have sold out and potentially taken short positions thinking a placing is coming very soon and they can get a low buy in price. Well, that remains to be seen..............a 3M X trade today clearing perhaps the overhang, might sugggest that a placing is not going to happen soon. Who knows.

With 100K production a month planned for year end, and the cash that generates, imv, CDN is undervalued by some margin.