Tip by Tom Winnifrith on investment website T1PS.com on 07.10.04 :
"In the mining world, Caledon Resources raced ahead by 0.75p to 5.125p after website t1ps.com upgraded its stance from "hold" to "strong speculative buy." Last time this website tipped Caledon the shares more than trebled in three months before members were advised to sell half their holdings so guaranteeing a three figure return. The website argues that the risk/reward trade-off now looks more attractive than ever and suggests that corporate activity within the subsector (Chinese gold explorers) is about to explode"
http://www.caledonresources.com//
Trades over 300,000 Shares are delayed in reporting by 1 Hour.


On fundamentals ALL exploration companies without resources can be said to be overpriced. The only assets they have which can have a hard-and-fast value assigned to them are their bank balances.
People invest in explorers because they believe that the projects/management/geo team have the potential to develop valuable mineral deposits. The share price usually reflects the market's opinion about this potential.
In the fulness of time, if Caledon discover deposits which can be proved up to contain a couple of million ounces, those that bought at 5p or even 15p will be seen to have been correct (or fortunate!) in their assessment of risk/reward.
Some details below from the recent WHI broker note on Palladex, I am not suggesting for a moment that anyone go buy Palladex this is just for comparative data where you will see the value of a company compared to it's in-situ gold.
Point is where will CDN be once they show one project is as big as they and we hope by giving an estimate by end of 2004 ?

Caledon Overview:
Caledon Resources PLC is a public company listed on the Alternative Investment Market of The London Stock Exchange (trading symbol: "CDN"). Its mission is to become the leading gold exploration company in “The Golden Triangle” of Southern China

Caledon has assembled a multi-talented, technically oriented management team - one of few with in-depth knowledge and experience in China. All members have over 15 years experience in evaluating hundreds of East Asian sediment hosted disseminated gold deposits
Advanced stage gold exploration focussed on under-explored producing gold mines in China - Exploration active on four advanced stage gold projects: Hengxian, Gaolong, Badu and Mojiang
Caledon’s primary focus: Sediment Hosted, Disseminated Gold Deposits (“Carlin-type”). Quoted from the United States Geological Survey (USGS Open-File Report 02–131): “It is likely that many of the Carlin-type Au ore districts in China, when fully developed, could have resource potential comparable to the multi-1,000-tonne Au resource in northernNevada.”

Corporate Summary
Caledon Resources PLC is a public company listed on the Alternative Investment Market of The London Stock Exchange (trading symbol: "CDN") and has been domiciled in the UK since February 2003. The Company’s primary focus is to enhance shareholder value through the opportunistic evaluation of fertile under-explored gold districts, resulting in the exploration, discovery and development of world-class gold ore bodies. The Company is currently focused on project evaluations and exploration for sediment hosted disseminated (“Carlin-type”) gold deposits situated in Southern China, although other styles of mineralisation are being assessed if they have multi-million ounce potential.

Caledon’s principal area of focus is Guangxi Province where it has negotiated joint ventures with The Geological Survey of Guangxi and is in the process of forming additional joint ventures with the Chinese National Gold Corporation.

Caledon has signed a joint venture agreement covering the Longtoushan Gold mine and 350 sq km’s of surrounding tenements in Guangxi Province as well as joint venture agreement covering various exploration areas under the control of The Geological Survey of Guangxi.

In addition, advanced exploration property acquisitions and joint ventures are being evaluated in Guangxi with The Chinese National Guangxi Gold Corporation and other joint ventures are under negotiation in Yunnan and Guizhou Provinces.

In order to exploit this opportunity, Caledon has assembled a team of geologists whose main focus over the past 15 years has been to identify and evaluate gold occurrences and deposits throughout South East Asia on behalf of several major mining companies.

Of the 300 plus gold occurrences and districts identified and screened over the years by Caledon’s team, five distinct gold districts have emerged as top-priority ranked targets, based on their geological similarities with the multi-million ounce gold districts found in the State of Nevada, U.S.A (“Carlin-districts”). The USGS has identified the so called “Golden Triangle”, consisting of the provinces in which the Company is focused (Guangxi, Guizhou and Yunna), as having similar style mineralisation to the Carlin deposits in Nevada.

To date, five highly ranked areas in Guangxi Province have been identified by Caledon’s team. Applications for mineral titles have been submitted on all five districts and joint ventures are being negotiated where applicable.

Recognising the need for foreign mining investment, in parallel with China’s entry into the World Trade Organisation, the country has adopted a number of sweeping changes that have recently been enacted in their mining legislation. In the country’s bid to attract foreign investment and mend the fractured structure of their mining industry, the Chinese government, through powers delegated to the provinces, allows foreign ownership of up to 90% in mineral titles and producing gold assets. In addition, various tax incentives exist to help foreign gold explorers and producers.

Perhaps the most relevant change recently enacted in China, involves the evolution towards complete transparency within the Chinese gold markets. Companies can now buy and sell gold on the Shanghai Gold Exchange, which quotes gold prices in line with the London Gold Fix rates. Additional mechanisms are currently in place to allow for repatriation of profits from Chinese-based, foreign-operated gold mining operations. Further enhancements are expected within the year.

The group now has all of the key primary ingredients in place in order to position the group for maximum returns.

Those key ingredients are:

highly experienced, South East Asia based technical management with proven exploration abilities,
acquisition / title lock on a number of properties hosting potential multi-million ounce disseminated gold deposits, and
an appropriate amount of financing in place allowing the group to conduct a meaningful first-pass exploration program within these districts.
Given the sweeping changes that China’s mining law has recently undergone, Caledon is well positioned to maximise gold exploration opportunities that exist in the country.

It is likely that many of the Carlin-type Au ore districts in China, when fully developed, could have resource potential comparable to the multi-1,000-tonne Au resource in northern Nevada.”

These are not my words, but the words of the US Geographical Survey or the (USGS). To read there full report on Carlin Deposits you need to go to the link -
http://geopubs.wr.usgs.gov/open-file/of02-131/OF02-131.pdf

The Projects
Hengxian Gold Mine - The Hengxian project is a classic example of a sediment
hosted disseminated gold system ("Carlin-type"), with considerable exploration
potential. At Hengxian, gold is being mined in a north-east trending zone
measuring up to 3 kilometres long and up to 800 metres wide. Gold occurs in
steeply dipping, high grade feeder structures (> 4.5 g/t gold avg.), feeding
flat-lying moderate grade (1-4 g/t avg.) stratiform zones. To date, at least
four sub parallel feeder structures have been defined. The gold mineralisation
occurs on a major regional structure that can be traced for more than ten
kilometres away from the existing workings. Access and infrastructure in the
area is excellent - Hengxian is a two hours drive from Caledon's office base
situated in the Guangxi Provincial capital, Nanning.

Previous exploration has been almost entirely focused on shallow oxide zones.
Gold resources at Hengxian are reported to be 310,000 ounces (Inferred category)
grading approximately 4.6 g/t gold - with those resources having been defined by
only a limited amount of shallow focused drilling, concentrated on the surface
oxide zones (0-60 m depth). Exploration to date has only been focused on a small
- 2.5 kilometre long - portion of the entire 10 kilometre long structure,
initiated on obvious outcropping oxidised sulphides.

Summary results from drilling conducted on Hengxian Hill by Caledon's minority
partners, Taifu Mining, defining the near surface limits of the deposit, include
the following:

Section Hole Number Depth (m) Intercept (m) Grade g/t Au
44 ZK 14 13 50.6 2.02
435 ZK 4351 25 10.1 8.0
ZK 4351 49 14.5 5.03
43 ZK 432 45 41.4 6.44
ZK 5 49 31.0 8.8
ZK 19 102 27.0 4.0
425 ZK 251 50 42.5 3.91
ZK 4255 103 29.1 6.93
ZK 4252 72 12.8 6.16
ZK 4252 90 18.6 4.02
415 ZK 152 42 20.7 3.0
ZK153 65 13.9 4.68
41 ZK 16 10 11.1 3.79
ZK 411 33 24.6 4.0

Intervals between known areas of higher grade mineralisation carry significant
disseminated gold mineralisation, typical of such gold deposits. For example,
drill hole ZK19 reported a 27 metre wide interval grading 4.0 g/t gold,
occurring within a much wider down-hole interval reporting a width of 133 metres
grading 3.24 g/t Au.

Gaolong Gold Mine - Gold has been actively mined at Gaolong by Caledon's
minority partners, Guangxi Tianlin Gaolong Gold Mine Ltd Co for over 10 years.
At Gaolong, surface and limited underground mining can be traced in a
semi-continuous manner over a strike length in excess of three kilometres, with
mining widths averaging 10 to 30 m, to a maximum of 60 m wide.

The Gaolong mine itself is ranked in the top two gold producers in the province
and has been cited by the United States Geological Survey (USGS) as having
distinct similarities to the 15+ million ounce Betze ore body situated in
Northern Nevada, USA (USGS OP 02-131).
Results from past drilling performed at shallow depths immediately adjacent to
zones being mined by the Chinese at Gaolong, are a testament to the bulk minable
nature of the Gaolong ore bodies themselves (i.e. Section #30 - 4.1 g/t over
10.8 m, 3.2 g/t over 33.4 m, 4.7 g/t / 31.3 m). The immediate extensions of
these open-ended zones will form the focus of gold exploration to be undertaken
in 2004.
In the 4th Quarter, 2003, Caledon reported results from a preliminary channel
sampling program at Gaolong, as part of the effort to identify drill targets on
the project. The following is a summary of results from this initiative:

Channel # Sampled Width Gold Grade
Channel 1 44 meters 2.5 g/t
Channel 2 10 meters 3.9 g/t
Channel 3 14 meters 2.4 g/t
Channel 4 28 meters 2.7 g/t
Channel 5 22 meters 2.3 g/t
Channel 6 12 meters 3.3 g/t

Badu Gold Mine - Small scale mining is in progress at the Badu Mine, situated 12
kilometres North East of the Gaolong mine. The Badu mining and exploration
tenements are included within the Gaolong master agreement. The GTGGML's
open-pit mining operations at Badu can be traced in a semi-continuous manner for
over four kilometres along strike, with mining widths averaging 20 to 40 m. Gold
is recovered in the heap leaching of oxide ores, with average head grades of 1
to 2 g/t gold. Caledon is aware of only 1-2 shallow drill holes having being
completed over the entire four kilometre strike length.

Mojiang Gold Mine - A letter of intent has been signed regarding Mojiang Gold
mine. Active mining has been underway at Mojiang since the late 1970s by the
Mojiang Mining Limited Company. The mining at Mojiang was based on reserves of
32 tonnes of gold (>900,000 oz) at a grade of 4-6 g/t Au. At present, the
majority of the gold mining operation is focused on gold production from open
pits and underground mining, with plant head grades consistently reporting above
4 g/t gold. To date, approximately 70% of the initial reserves have been mined.
At Mojiang, individual veins, averaging up to 12 metres wide, have been shown to
host grades in excess of 15 g/t. Individual veins sometimes exhibit bonanza
grades (in-excess of 30 g/t gold), typical of such systems. The veins are hosted
in sediments and acid volcanics, near the contact between thrusted Cambrian
sediments and metamorphosed ultra-mafic volcanics belonging to a regional scale
ophiolite complex, within the Red River Suture Zone.
Examples of diamond drill intercepts at Mojiang highlighted from the earlier
Chinese work include:

Section # Drill Hole Mineralised Intercept
Section 50 DDHZ50-6 41.62m @ 3.34 g/t
Section 51 DDHZ51-16 28.22m @ 4.89g/t
Section 52 DDHZ52-10 53.98m @ 2.72g/t
Section 40 DDHZ93-1 7.93m @ 13.67g/t
Section 40 DDHZ93-1A 8.39m @ 9.00g/t
Section 40 DDHZ94-3 12.35m @ 15.05g/t

Contact Information
London Office
18 Upper Brook Street
London W1K 7PU
United Kingdom
Tel: + 44 20 7318 5780
Fax: + 44 20 7318 5781
Stephen Dattels - Chairman
sdattels@caledonresources.com

Donal Douglas - Deputy Chairman
ddouglas@caledonresources.com
George Salamis - Managing Director
gsalamis@caledonresources.com
Manish Kotecha - Company Secretary
mkotecha@caledonresources.com

Minews Story
Date: November 30, 2004

Caledon's Investment In Afcan Mining Should prove advantageous To Both Companies.

Caledon Resources listed on AIM just before Easter last year and was one of the great successes of that market. Six months later its share price had risen from 1p to 6p and by that time its portfolio of exploration projects in China had grown significantly. The directors of the company had access to data on several hundred prospects in China which have been identified over a 15 year period under the sponsorship of Cameco, Placer Dome, Barrick and others. The initial focus was on Carlin-type disseminated gold deposits on the China/Guangxi - Yougiang Rift zone and just to give an idea of the pace of progress, Caledon signed a MOU with Jinyou Geological Exploration to acquire further mining assets on the 9th September 2003 and followed this up with a JV Agreement on the Hengxian Gold Mine, one of Guangxi's premier gold producers before the end of the month.

A year ago, practically to the day, Caledon signed a joint venture on the Mojian gold mine in Yunnan Province and the pace of announcements concerning deals and exploration results has not slackened this year. The share price, however, has not reacted and the directors came to the conclusion that the company had to make a significant move towards production. This would improve credibility in China as well as advancing the rating of the company from pure explorer to developer. Caledon has therefore raised a total of 4.5 million this month by private placements at 4.5p and is investing 2.69 million in the Canadian listed Afcan Mining Corporation.

This investment gives it a 19 per cent holding in Afcan on an undiluted basis, but would rise to 26 per cent if warrants were exercised. The aim is to accelerate development of Afcans 85 per cent owned Tanjianshan gold project which is currently involved in a bankable feasibility study. At the time that the deal between the two companies was announced this project had indicated gold resources of 579,000 ozs and inferred resources of 175,000ozs. Since then Afcan has announced an increase in the resource estimates at Tanjianshan to over 1 million ounces based on the drilling programmes carried out over the last couple of years.

The project now has most of its resources in the measured and indicated categories and there is plenty more to come as the corridor in the north-east, which has previously been drilled and mined, and the mineralised outcrops to the north which have yet to be drilled are not included in this latest resource statement. It is worth noting that the average grade of the Qinlongtan deposit increased significantly to 8.62 g/t and this helped to just about double the indicated resource to 323,000 ozs while still remaining open to the south and to depth. The higher grade and tonnage at Qinlongtan will enhance the economics of the project and consultants RSG/Global are factoring them into the mine modelling.

David Netherway, chief executive, has done a great job since taking up the reins at Afcan which, as the name suggests, was previously involved in Africa. Everyone in exploration needs a bit of luck and his luck was to find an old sparring partner, Jim Askew , with whom he had worked at Golden Shamrock before it was acquired by Ashanti, was on the board of Sino Gold, an Australian listed company which had been one of the earliest entrants into China. He helped Netherway buy the Tanjianshan project for US$5.6 million in cash plus 4.6 million shares in Afcan as well as warrants.The deal was completed in February 2002 and since then Sino Gold sold its Afcan shares but held onto the warrants.

The Tanjianshan project is in the northern part of Qinghai province in north west China and already contains a small gold mine with a leach pad, mill and roaster. It consist of two main deposits, Jinlonggu and Quinlongtan which have been the focus of exploration to date. In August, however, Afcan signed a regional exploration deal with the Q1 Geological Brigade of Qinghai province and has already drilled some other prospects as a signal that it is not a one-mine wonder. None of this will deter it from the job at hand which is to finish the Tanjianshan bankable feasibility study in January 2005. Caledon will then be able to help find development funding and, if all goes to plan, the mine should be in production at a rate of 110,000 ozs/year in 2006.

Afcan would then become Chinas second western gold producer, after Sino Gold, and Caledon would have built a reputation for assisting in the development of a mine. This is very important for the company as it has switched its strategy from being a leading explorer in what is called Chinas Golden Triangle to being a leading consolidator of the Chinese resources sector, private and public. This is an ambitious plan, but it makes sense as there are many small projects in China which could benefit from western management methods and technology.




--------------------------------------------------------------------------------

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Press Mention : in today's Independent Newspaper.

↓ Caledon Resources 5.5p (down 1p, 15.4 per cent). Profit-taking after positive drilling results.

http://news.independent.co.uk/business/analysis_and_features/story.jsp?story=588146

PS. The drilling results announced yesterday have been preceived positive it seems.

Good like to see positive news! Still holding a large amount

This stock is up and down like a yo-yo. Given all the positive news of late and the high volatility we're now back where we started. Buy the dips - will not stay below 5p for long.

http://Change of Adviser

Keep an eye on this share. Has dipped on recent profit taking. I am reliably informed that most of the recent intersections reported, with the exception of Longtoushan, have been in oxide ore that is suitable for heap leaching. At todays gold price the break-even grade for a heap leach operation in China is of the order of 0.3g/t.

ITURAMA As I obviously hav'nt a clue re your last post, I read it to be good news for Caledon.
Regards

What it means is that all the intersections reported in the last bulletin for Gaolong had good economic potential. Those results were first pass, exploratory drlling. Follow-up will focus on the potentially more interesting zones which could kick-start a successful operation.
With a cut-off of 0.3g/t, even a recovered grade as low as 1.0g/t can give a spectacularly good result, if you have enough tonnes to treat. For example, at todays gold price of $14/gm, the operating profit would be of the order of $10 per tonne of ore treated.

I said keep an eye on this share! Didn't expect such a quick tick up.




Caledon Resources PLC
17 December 2004



Caledon Resources PLC
18 Upper Brook Street. London W1K 7PU England
Telephone +44 (0) 20 7318 5780 Facsimile +44 (0) 20 7318 5781

Press Release

17th December 2004

Conversion of Mojiang Letter of Intent to Full Joint Venture Status,
Mobilization of Drill Rig to Site

Caledon Resources Plc ('Caledon') is pleased to announce the conversion of the
Mojiang (Yunnan) project agreement to full joint venture. The Mojiang letter of
intent (November 2003) was converted to a full joint venture agreement during a
signing ceremony which took place in Yunnan province on 12th December 2004. The
agreement's completion paves the way to drilling on the property, to commence in
January 2005.

Work by Caledon's field crews has identified significant gold potential on
extension from zones of low sulphidation epithermal style gold mineralisation
which have been actively mined by the Mojiang Mining Company.

Classic examples of well documented sulphidation deposits found in different
parts of the world include: Europe: Rosia Montana, Romania, South America:
Esquel, Argentina Asia-Pacific: Lihir, Papua New Guinea, Baguio, Phillipines.

The drill program at Mojiang calls for a minimum of 1500 metres of reverse
circulation ('RC') drilling in 10 to 15 drill holes.

Deal Structure

In November 2003 Caledon, through its wholly owned subsidiary Blackwatch
Resources Limited, signed a Letter of Intent ('LOI') with the Mojiang Mining
Limited Company ('MMLC').

Caledon can earn a 70% equity stake in the Mojiang mine concession (7.2 km2) and
new tenements within Mojiang County, as well as a 90% interest on exploration
ground to be acquired in defined counties in southern Yunnan Province.

Under the terms of the joint venture agreement, Caledon has the right to earn a
70% equity stake in the project through the expenditure of US$1 million on
exploration over a 3 year period and completion of a feasibility study. Under
the terms of the agreement, MMLC has a 30% interest, of which 15% is carried to
the commencement of production and 15% is participating in any future
development and production.

Geology and Immediate Exploration Potential

The Mojiang project and mine site area lies 240kms SW of Kunming the capital of
Yunnan, and is near a major new highway, approximately four hours drive. The
main target area is the Mojiang mine, an active gold mine producing gold from a
number of small open-pit and underground operations.

Mojiang has produced approximately 300,000 ounces over the last ten years. At
present, mining is focused on gold production from open pits. The gold zone
occurs over a strike length of 3,100 metres and ranges in width from 50 metres
to 200 metres. Within this zone, individual orebodies occur as oxidised
near-surface zones that are being mined by opencut. The opencut ore averages
between 2 - 3 g/t gold and is largely oxidised. Southeast of the opencut mining,
2 metre to 10 metre thick banded quartz lodes occur, with bonanza gold grades.

The mineralisation at Mojiang is hosted in a series of moderately dipping veins,
displaying classic colloform and 'crack-seal' banded textures. Individual veins,
averaging up to 12 metres wide, have been shown to host grades in excess of 15 g
/t. The veins are hosted in sediments and acid volcanics, near the contact
between thrusted Cambrian sediments and metamorphosed ultra-mafic volcanics
belonging to a regional scale ophiolite complex, within the Red River Suture
Zone.

Examples of diamond drill intercepts at Mojiang from the earlier Chinese work
include: 41.62m @ 3.34 g/t, 28.22m @ 4.89g/t, 53.98m @ 2.72g/t, 17.59m @ 3.02 g/
t, 19.63m @ 2.14g/t, 7.93m @ 13.67g/t

Ore zones associated with low-sulphidation deposits are typically localized in
structures, but may also occur in permeable lithologies. Upward-flaring ore
zones centered on structurally controlled hydrothermal conduits are typical.
Large (> 1 m wide and hundreds of metres in strike length) to small veins and
stockworks are common with lesser disseminations and replacements. Vein systems
can be laterally extensive with high-grade ores commonly found in dilational
zones in faults at flexures and splays.

Caledon's Recent Field Work and Drill Targeting

Field mapping and sampling of the Mojiang tenement was recently completed as a
lead-up to a planned drill programme on-site. As reported in September of this
year, the results of continuous rock chip sampling from existing mine workings,
covering an area of 400 metres by 300 metres, gave the following significant
results. They indicate a large mineralised gold system.

Channel Number Gold Mineralised Interval

Channel 1 4.64 g/t gold over 24 m
Channel 2 1.10 g/t gold over 36 m
Channel 3 2.18 g/t gold over 26 m
Channel 4 1.33 g/t gold over 50 m
Channel 5 1.71 g/t gold over 22 m
Channel 6 1.67 g/t gold over 22 m
Channel 7 7.75 g/t gold over 2.0 m

Individual grab samples collected underground at Mojiang by Caledon's field
crews on individual quartz reefs have returned spot gold assays in excess of 60
g/t gold.

An RC drill rig is on its way to the Mojiang mine-site from the company's
Guangxi area projects.

Commentary

George Salamis, Managing Director, reports 'Over the past year, we have
developed an excellent working relationship with the MMLC management, having
spent many weeks on-site in geological mapping and sampling. The potential for
high grade quartz-reef style mineralisation at depth and lower grade
'upward-flaring' near-surface mineralisation, is very exciting.'


On behalf of the board:

Stephen R Dattels George Salamis
Executive Chairman Managing Director


For further information, please visit our website at
www.caledonresources.com
or
contact:

Stephen R Dattels

sdattels@caledonresources.com

George Salamis

gsalamis@caledonresources.com

Donal Douglas, Investor Relations

ddouglas@caledonresources.com


This information is provided by RNS
The company news service from the London Stock Exchange




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2004 MoneyAM

Already up 26%. Who needs PET!

Thanks for the tip off iturama I have been holding these for a few weeks now but have only seen the price dip so am real pleased to now be breaking even & who knows may even be able to make some profit which will help buy a plaster so's that I can cover up my mauling by PET.

One door closes, another opens. The dip was to be expected between news bulletins. Might get some more drill results before Christmas, in which case we could have a double wammy! Fingers crossed.

I chewed my fingers off what with the PET saga.. so am now onto crossing of toes.

Same with me got out of PET with a 23% loss, got back in today at 42p. CDN should be a tick up soon.

Not surprising that the bid price has ticked up to 5.75 Barclays have been offering 6.0 for more than an hour.

good old Barclays price improver.

LONDON (AFX) - Caledon Resources PLC said it is making a private placement of 772,000 stg in western China gold explorer Dynasty Gold Corp.

Dynasty's Hatu gold project is the company's current main focus - a gold resource estimate is expected to be released shortly for Hatu.

Caledon said Dynasty has the largest land position of any foreign exploration company in western China. All projects hold high potential for discovery, with large zones of gold mineralization identified in the past year's exploration.

Caledon views the deal as yet another step towards diversifying its business approach in China, further consolidating the fragmented Chinese resource sector and providing a more highly leveraged Chinese resource sector investment strategy to shareholders.

Caledon's placement in Dynasty consists of the purchase of 4.5 mln share units at 0.41 cad each. This equity stake represents approximately 15 pct of the issued and outstanding shares of Dynasty.

Managing director George Salamis said: 'Dynasty owns an excellent portfolio of properties in western China and on one property in particular - Hatu - we expect that significant resources of potentially open pitable gold will be reported soon.'

In addition, he said the company has a very strong, technically oriented management group on the ground and in Vancouver, which is backed corporately by Endeavour Capital and Canaccord Capital.

'There will be a number of important synergies to be had going forward between the two groups.'

newsdesk@afxnews.com

slm/

Now lets hope this news sends the price in the right direction.

A summary of the current Dynasty projects:



Dynasty Gold Corporation (Dynasty) is evaluating 3 known gold producing mineral projects in north-west China. These projects include:

Hatu Project - Xinjiang Province
Red Valley Project - Qinghai Province
Wildhorse Project - Gansu Province
The combined area of the projects makes Dynasty one of the largest foreign land holders for mineral exploration in China. Dynasty believes the potential exists to delineate and exploit medium to large gold deposits, in any or all of the areas.

Dynasty's strategy is to adapt a western approach to exploration and resource evaluations. Previously, these deposits were only considered as underground targets, requiring substantially higher cutoff grades to be mined as ore. Dynasty believes there is an opportunity to re-evaluate these using a bulk mining open pit approach at a lower cutoff grade. In most areas an artificial cut off grade has been imposed leaving a lot material either ignored or not sampled. Work completed to date confirms this to be the case.

Hatu Project, Xinjiang Province


Located in the Tian Shan gold belt, hosting world-class gold deposits
Aggressive exploration program underway, which include a drill intersection of 64.7 meters of 5.1g/t Au.
Aggressive exploration under way to validate previous data in order to calculate resource by end of 2004
Exploration program concentrating on known gold producing areas, to establish a template for exploration..
Gold is structurally controlled and occurs along major faults and oblique intersecting minor faults
Sino Joint Venture and Business completed, 1000 square kilometers of exploration licenses approved in Beijing
Red Valley Project, Qinghai Province


2004 exploration season completed with results pending
Located in the highly mineralized Qilian metallogenic Belt host to several large precious and base metal deposits
Gold is structurally controlled in volcanics and metamorphosed sediments
Mutual Interest area of 1,000 sq.km in known gold producing area
Sino JV completed with Business License received
Previous work by Chinese Exploration Team outlined
Alteration Zone of 50-500 meters wide X 16 km long
Trenching shows 5-10 g/t over 20-30 meters
One drill hole 5 g/t over 5 meters
Wild Horse Project, Gansu Province


Located in the highly mineralized Qilian metallogenic Belt host to several large precious and base metal deposits
Mutual Interest area of 3,000 square km in known gold producing area
Sino JV completed with Business License pending
Previous work by Chinese Exploration Team outlined
15 Au-Cu occurrences
a significant magenetic anomaly measuring 168km x 40km
numerous ring structures
strata bound gold zone with thicknesses of up to 44.5 meters from surface, with gold grades ranging from 1.0 - 6.0 g/t (0.029-0.175 oz/ton) averaging 2.2 g/t gold
Completed NI 43-101 report