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

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Last interims : 11th Sept 2007

http://www.investegate.co.uk/Article.aspx?id=200709110701416234D

11 September 2007

Caledon Resources plc
('Caledon' or the 'Company')
Interim Results for the six months ended 30 June 2007


Highlights

Explorer to producer. The transition from gold explorer to coal producer
is almost complete, the remaining Chinese assets are being reviewed and the
Company's options are being established. The transition is supported by a
robust operating asset base and strong management team with experienced coal
executives and operators.

Cook Acquisition. Shareholders will recall that, through its subsidiary
Caledon Coal Pty Limited ('Caledon Coal'), the Company took possession of
the Cook mine on 14 December 2006. Recommissioning of the Cook mine started
in early January following a period of running on care and maintenance under
Xstrata. A new site management team and workforce has been engaged which
currently stands at around 130 people.

Minyango Acquisition. The first phase of exploration is completed at
Minyango. The Company has completed 15 drill holes, in addition to the 65
previously completed holes on the project, in a programme designed to
further define coal quality, coal seam continuity and seam thickness of the
deposit. This drilling led to the completion of a resource estimate by SRK
Engineering amounting to 240mt (JORC) coking and thermal coal of which 75mt
is indicated and 165mt is inferred.

China. On 31 July 2007 the Company announced the signing of a Letter of
Offer with Indochina Minerals Limited ('Indochina') regarding the sale of a
number of gold projects in The People's Republic of China.

Results. The loss per share for the six months ended 30 June 2007 was
3.91 pence (2006: earnings per share 1.27 pence)

Commenting today, Robert Alford, Chairman of Caledon said 'The Company has
successfully completed the refurbishment and recommissioning of the Cook mine.
Production and sales of Cook coal have now commenced. We have an established
work force in place at Cook and we continue with the exploration program at the
240mt adjacent Minyango project. The Company remains focused on increasing
production at Cook and looks forward to introducing the Magatar Mining System in
October with an expected production rate set to reach 100,000 tonnes per month
by the end of the year'

Copies of this interim report for the six months ended 30 June 2007 will be
available from the offices of Caledon Resources plc, 18 Upper Brook Street,
London, W1K 7PU, and on the Company's website www.caledon.com.

Last Operations Update : 25th Sept 2007

http://www.investegate.co.uk/Article.aspx?id=200709250856554241E


Caledon Resources PLC
25 September 2007


September 25 2007
Caledon Resources Plc

Caledon Resources plc ('Caledon' or 'the Company'; AIM: CDN) announces 60,000+
tonne sale of coking coal from the Cook mine and arrival of New ABM 25 Bolter
Miner.

The new Voest Alpine ABM 25 bolter miner has arrived on site and is in
the process of being prepared to be taken underground.

Continuous haulage system mechanically assembled and is in the process of
having electrical and hydraulic systems commissioned and tested on surface.
Once completed the haulage unit will join the ABM 25 underground.

Implementation of the complete Magatar Mining System progressing in line
with expectations.

Company confirms the sale of 60,000+ tonnes of coking coal in September
2007.

AIM listed miner Caledon Resources announces the delivery of the new ABM 25
Bolter Miner to site. This 'state of the art' miner will join the new continuous
haulage system and together they will be taken underground to complete the
Magatar Mining System.

The Magatar Mining System is a new mining method for Australia which
incorporates a Continuous Bolter/Miner paired with a continuous haulage conveyor
system plus other key elements. As demonstrated in South Africa, USA and Canada
this mining method can achieve impressive production rates in excess of 1
million tonnes per annum.

The company also confirms that sales of coking coal from its 100% owned Cook
mine have amounted to in excess of 60,000 tonnes during the month of September
2007. The coal was sold under existing marketing agreements at a price in line
with industry expectations.

Commenting on today's announcement, Robert Alford, Chairman, said 'This
significant sale of coking coal represents a further milestone for the Company.
The recent arrival on site of the new ABM 25 Continuous Miner together with the
Prairie Haulage System brings the final elements of the Magatar Mining System
together. The Company remains on target to implement the full Magatar system
during October with increased production expected almost immediately. '

If anyone has not listened to it yet, well worth it :

Caledon Resources PLC

Interview With:
Mark Trevan
Managing Director

Dated September 20, 2007


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


.

Demand for Coal and for Coke appears to be very strong presently.


http://www.busrep.co.za/index.php?fArticleId=5021098

Coal prices soar to record over $100
September 27, 2007

By Jackie Cowhig

London - Physical coal prices for delivery into Europe broke record levels over $100 a ton on Thursday, as the worldwide rally in energy prices broke through into the opaque and fragmented coal market.

Coal prices have been rising all year as availability has progressively tightened. Unfortunately for consumers, freight rates have also repeatedly hit record levels, forcing up the delivered cost of coal.

Three Q4 delivery coal cargoes traded on Thursday, one at $102.00 a ton DES ARA and one at $101.00 DES ARA on the globalCOAL trading platform. A further parcel was sold at $101.00 through brokers, traders said.

These were the first visible, on-screen coal trades ever at over $100.00 a ton. In January, CIF/DES ARA coal prices were around $65.00 a ton.

Prices of prompt loading South African coal cargoes bounced back above $65.00 a ton free-on-board (FOB) Richards Bay on Thursday, having drifted down to around $63.85 for an October cargo on Wednesday.

A flurry of four trades within minutes of each other on electronic trading platform globalCOAL saw prices rise to the highest traded level on Thursday of $65.50 a ton for a December loading panamax.

Two November loading panamaxes traded at $65.00 and $65.25 a ton and two December panamaxes at $65.50 and $65.30.

There were several companies involved in the trades including banks, traders and a major European utility/trader.

The buyers were covering short positions for Q4, one of the companies involved said.

South African availability for Q4 and Q1 is tight and getting tighter, traders and utilities said.

Prices for prompt cargoes could rise to $70.00 or more within weeks if Indian buyers return to the market as expected for two million tonnes for Q4 shipment, traders said.

Coking coal prices set for a boom ahead ?

The key line, as far as CDN is concerned, is "and with a rebound in prices for thermal and coking coal likely,"


http://www.dailyreckoning.com.au/australian-dollar-6/2007/09/27/

Strong Australian Dollar Sign of Strong Economy

Posted by Dan Denning on Sep 27th, 2007

The Aussie dollar once again moved up against the greenback, nearing 87 cents. The strength of a currency is often a referendum on the strength of an economy. Australias economy has some notable weaknesses, namely the trade deficit and the high level of household debt as a percentage of GDP (see yesterdays letter). But it also has some obvious strengths which make it appealing to investors.

The Australian Bureau of Agricultural and Resource Economicswhich has the clumsiest name of any government agency weve ever encounteredannounced earlier this week that Australian commodity exports should generate nearly US$144 billion in sales in 2007 and 2008. The stronger Aussie dollar actually lowers the sales figures a bit. Commodity sales priced in US dollars are then converted back into the Aussie. With a falling greenback, Aussie export earnings take a hit.

So far, however, high commodity pricesespecially for nickel and copperhave kept export sales growing. With BHP (ASX:BHP) and Rio Tinto (ASX:RIO) negotiating a hefty increase in the iron price for next year, and with a rebound in prices for thermal and coking coal likely, the Australia-China parternship looks as strong as ever. Not just boom. Sonic boom!

I didn't realise that TW had a 70p base valuation target on CDN but with Minyango offering lots of upside to that 70p.

Jolly good.

Update from GE&CR today :

...........On September 3rd, Caledon Resources announced that it had made its first sale of coking coal with the shipment of 14,000 tonnes in August 2007. Due to a change in vessel arrival dates, this first sale of coking coal was below the forecast indicated in the Companys AGM statement announced on 31 July 2007. Forecast sales of coking coal for September are in excess of 60,000 tonnes.

On September 11th, the company announced its interim results. These showed that it had made a pre-tax loss of 5.73 million in the half calendar year, resulting in a loss per share of 3.91p. The losses reflect the cost of the companys successful completion of the Cook mines refurbishment and re-commissioning. With output from the Cook mine now increasing sharply, a process accelerated by the introduction of the Magatar Mining System in October, it is likely that production will reach levels of 100,000 tonnes per month by the end of the year.

Our current valuation of the Cook Mine alone is 71p. We expect drilling results from the Minyango lease to be published shortly - they are currently held up by the analytical lab in Australia. Our valuation of the Minyango lease is at 3.6p per Caledon share. With an estimated cash at bank figure of 1 million our estimate of fair value is 76.45p per Caledon share. At 36p our stance remains buy.

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.