Cadan Resources Corporation

Cadan Resources Corporation

May 16, 2012 12:08 ET

Cadan Resources Corporation Reports Technical Disclosure Review

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 16, 2012) - Cadan Resources Corporation (TSX VENTURE:CXD)(FRANKFURT:AOMZ25) announces that the British Columbia Securities Commission ("BCSC") has selected the Company for a technical disclosure review for the purpose of assessing the Company's compliance with the technical disclosure requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). As a result of the review by the BCSC, the Company received comments from the BCSC identifying certain disclosure and filing issues with respect to the Company's technical disclosure.

In particular the BCSC has advised the Company that certain fundamental deficiencies were identified in the technical report titled "Exploration and Development Strategy for T'Boli and Batoto-Tarale Gold Projects, Mindanao, Philippines" dated November 29, 2009 (the "Report"). The BCSC noted that the report did not include certain prescribed statements and form requirements under NI 43-101 relating to resource estimates, historical estimates and exploration potential, and also raised questions concerning the verification procedures and methodology used in generating the resource estimates.

As a result of the BCSC comments on the Report, Cadan has determined to issue this press release to advise the public that the Report should not be relied upon, and that the report is retracted. The Company is making arrangements for the preparation of a compliant NI 43-101 technical report regarding the T'Boli property, which will be filed on SEDAR as soon as it is completed.

In addition, the BCSC has informed the Company that:

  • certain disclosure on its website does not comply with NI 43-101, including two slides on its corporate presentation, and a link to a report prepared by a third party that quotes in-house resource estimates for the T'Boli and Tagpura properties, as well as estimates of the possible economics of a project on the T'Boli and Tagpura properties. In addition the website disclosed information based on the Report, that as a result of the retraction of the Report can no longer be relied upon.
  • previously filed management discussion and analysis included references to potential mine life and annual production estimates for the Tagpura property, references to "ore" and potential "ore reserves", and references to historical resources and potential tonnage ranges that did not include the supplemental disclosure and cautionary language required under NI 43-101; and
  • the Company's press release dated March 22, 2012 included one reference to contained ounces, which is not permitted under NI 43-101.
  • Due to changes to the definition of a qualified person under the new version of NI 43-101 effective in June of 2011, the person referenced as having approved technical content of the website, corporate presentations and press releases on behalf of the Company may no longer meet the criteria of a qualified person.

In response to the above points, the Company has removed technical disclosure from its website pending a review and update of the content. The Company advises that there are no known reserves on any of its mineral properties and as a result the economic viability of the properties has not been demonstrated. Cadan advises readers not to rely on retracted information or information that has not been qualified as required under NI 43-11, to the extent that such information continues to be found in the public domain.

In addition, the Company is reviewing the composition of its technical team as a result of the definition of "qualified person" as adopted in the June 2011 version of NI 43-101, and is considering the addition of a new qualified person to its technical team.

As a result of the review by the BCSC, the Company has been placed on the BCSC's "Defaulting Issuer List" until the deficiencies are remedied.

For and on behalf of the board of directors,

Robert Butchart, President and 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. These risks and uncertainties include the occurrence of unexpected delays in updating the technical report, issues around obtaining a NI 43-101 compliant resource estimate, and obtaining technical staff with appropriate designations or qualifications. While the forward-looking statements in this news release are based on what management believes to be reasonable, Cadan cannot assure investors that actual results will be consistent with these forward-looking statements.

Neither 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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