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

transco15 - "when the new stock hits the market there is a big downside"

When you dilute 178m shares at 73p with 13.6m shares at 53p you get 191.6m shares at 71.5p - hardly a big dilution. And as noc says, massively oversubscribed.

Interested (in a morbid kind of way) whether my decision to sell turns out a wise move or I've missed the next upward leg. I've really no idea. Coking coal prices into China have doble since January, but CDN has had a pretty good run.

My guess (and no more) is that the Oz listing will cause a spike followed by weakness and doldrums for some tiome to come.

Nice of you to give your opinion - mine is unchanged - you have got out at the near top!!

Mention in the Times reqarding the share issue. Its possible that the reason for the
oversubscription would be down to the instant 30%+ profit at the present SP, so
we could see some early selling? For me the reason i'm holding tight is that i believe we just have an engineering issue to sort out,before the real potential is realised?
aimo
cyril

Niceonecyril,

Spot on C..... it may be worth holding on but beware if the sp comes under fire these will drop like a stone in IMHO.
I would also keep an eye on the oil price. If that drops, as it will at some point, it will have a very negative impact on CDN or any other coal stock.

SP flying this am. one buy of 80p and many at 79.5p with 50,000 and 100,000
amongst them.
cyril

Surprised so little interest here, touching 90p at present (something which has taken me by surprised) since the release of the annual report. Once the aussie
overhang is cleared we can concentrate on Cook and the Megastar production results, and with Minyango now firmly in CDN's hands the full potential can be proven up,which will no doubt be of interest to the majors bring imho a lot more
value to the company than at present?
cyril

Time to jump ship?

Well its broken through the 90p barrier, coal stocks seem to be king at this minute.
CBM +2.27% CDN +2.84% CLN +10% and WTN +4.84%.
cyril

correct - the surprising thing is no profit taking!!
when will the sellers come out?

its ticking back up again - the market appetite is insatiable!

Can't bear to watch - sold out at 71p!!!! Good luck all.

Stockdog
I bought ASOS at 10p and sold also at 71p, felt sick ever since lol
I know how you feel!!!!
Dave

holding on - what a ride!!!!!

cyril, I am away from home this week. I have popped in to a library on the Essex coast just to see how things were going. All looks good to me, now and the long term. Regards goal.

W O W - At some time there must be a blood bath here.
great ride but I now have vertigo!

PLEASE BE POSITIVE.

Well they say what goes up must come down!! dizzy

Transco, Agreed but at this minute its more important to understand why they
are rocketing? Could be a take over or news that the Megarstar has finally
started producing at levels near to what was promised(1m/tonnes/year),take your pick, whatever it is the market seems to have woken up to the value of this
company.
aimo
cyril
P.S.
WTN has broken the 4 barrier in Canada which makes CBM look real cheap.

Back home now. I bought CDN for the long term and frankly I will be delighted when trannco15 takes his profits and stops posting!!

Goal theirs nothing wrong with taking a profit and always worth thinking about, top slicing could be the answer. CDN however seems at this minute to have some momentum, just a matter of timing i suppose?
cyril