Cadan Resources Corporation
TSX VENTURE : CNF

Cadan Resources Corporation

August 18, 2009 09:15 ET

Cadan Announces Purchase of Crushers and Ballmill for T'Boli Gold-Silver Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 18, 2009) - CADAN RESOURCES CORPORATION (TSX VENTURE:CNF) ("Cadan" or the "Company") is pleased to announce the purchase of new jaw and cone crushers, ballmill, gravity circuit, spares and ancillary equipment for the first phase test production, between 50 and 150tpd, at its T'Boli gold-silver mine.

T'Boli has a NI 43-101 Inferred Mineral Resource (2.4Mt @ 5.5g/t gold and 21 g/t silver) of some 420,000 ounces of gold and 1,600,000 ounces of silver (see News Release dated Thursday, December 18, 2008).

The equipment has been purchased from Zhengzhou Zhongding Heavy Duty Machine Manufacturing Co Ltd based in Zhengzhou, China, which is ISO9001-2000 rated. The company has international customers in Asia, Africa and Latin America.

It follows a recent visit to the company's manufacturing facility in Zhengzhou by Mining Engineer and TMC Tribal Mining Corporation President Edgar D Martinez and Mining Engineer, Warilto Abaga with Zhengzhou Zhongding Heavy Duty Machine Manufacturing Mechanical Engineer, Ba Jianzhang.

The combined equipment as recommended by metallurgical consultants will achieve a fine grind and optimum recovery of gold and silver. The jaw crusher is rated up to 22tph, cone crusher to 23tph and the ball mill is rated up to 8.2tph sufficient for first phase production range between 50 and 150tpd. Further design changes may increase capacity to 200tpd.

Based on current development costs, the Company estimates a production cost range cost between US$ 250 - 350 per ounce of gold.

The Company is targeting Q4 09 to begin testing mineralized ore from the known systems. This enables the lateral development of the decline, which is on a mineralized zone highlighted by some 40m @ 23g/t gold (uncut), to be advanced sufficiently to ensure continuous mineralized material and to test actual widths and gold-silver grades in the mineralized system.

Also the ventilation and alternative egress shaft is being advanced some 100m ahead of the decline face. This shaft, being sunk on a gold lode, currently has four working faces developed and up to two more planned to provide early trial production when the advancing decline is connected.

Qualified Person and Quality Control and Assurance

Technical aspects of this news release were prepared and verified by William Donald Goode, a member of the AusIMM and Technical Director of Cadan Resources. He is the qualified person as required by NI 43-101, and is the technical person responsible for this news release. The qualified person has verified the data disclosed in this news release, including sampling, analytical and test data underlying the information and opinions contained in this news release.

The Inferred Mineral Resource Estimate conforms with CIM Standards and is a NI 43-101 compliant Inferred Mineral Resource as defined in the Technical Report filed on SEDAR, February 12, 2003.

For further information relating to the historical resource and the geological setting, readers are referred to SUR technical report, specifically "T'Boli Group of Properties" pages 33 - 49, that is published and available on www.sedar.com - news release dated February, 12, 2003. It is the opinion of the qualified person that all geological information in the report, as it relates to the T'Boli gold-silver project, is current.

For further information relating to the historical resource and the geological setting of the Comval Project, readers are referred to SUR technical report, specifically "Deposit Types Comprising the Sabena Project" page 9, that is published and available on www.sedar.com - news release dated February, 12, 2003. It is the opinion of the qualified person that all information in the report, as it relates to the Tagpura Kalamatan Maangob belt, is current.

On behalf of the board of directors,

Brett Taylor, President & CEO

Forward-Looking Statements

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through www.cadanresource.com or the Company's page on SEDAR at: http://www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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