Cayden Resources Inc.
TSX VENTURE : CYD

Cayden Resources Inc.

December 21, 2010 14:49 ET

Cayden Resources Inc. Agrees to Floor and Ceiling Price Parameters on Issuance of Shares to La Camera Mining Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2010) - Cayden Resources Inc. (TSX VENTURE:CYD) ("Cayden" or the "Company") is pleased to announce that it entered into an amendment agreement dated December 16, 2010 (the "Amendment Agreement") to its October 18, 2010 Option Agreement with La Camera Mining Inc. whereby the common shares and warrants to be issued to settle the CDN$11,550,000 purchase consideration obligation will have a minimum deemed issue price (the "Issue Price") of CDN$4.00 and a maximum price of CDN$4.75. If at the time of exercise, the 5 day volume weighted average trading price of Cayden's shares is less than CDN$4.00, the Issue Price shall be deemed adjusted to CDN$4.00; if at the time of exercise, the 5 day volume weighted average trading price of Cayden's shares is greater than CDN$4.00, the Issue Price shall be deemed adjusted to CDN$4.75.

Under these terms, a maximum of 2.89 million shares and 1.45 million share purchase warrants and a minimum of 2.43 million shares and 1.22 million share purchase warrants will be issued in the event that Cayden elects to exercise the Option. The Amendment Agreement is subject to regulatory approval expected in the ordinary course.

President and Chief Executive Officer, Ivan Bebek, commented: "We feel that by establishing a floor and ceiling to the share consideration to be issued to exercise the Option based on prevailing prices, we are mitigating risk for both parties in an equitable manner."

On Behalf of the Board,

Ivan Bebek, President and CEO

About Cayden Resources - Cayden is a junior mineral exploration company focused on the rapid exploration and development of high quality mining assets located primarily in North and South America. Managed by highly skilled and successful technical and financial professionals, Cayden is well financed with no debt. Cayden is also strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighboring communities. Cayden trades on the TSX Venture Exchange. More information about Cayden is available at www.caydenresources.com.

Benjamin Gelber, B.Sc., P Geo. is the Qualified Person responsible for this news release.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

Forward Looking and other Cautionary Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts that address the future price of the Company's shares, regulatory approvals and share issuances under the amended Option Agreement are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, timing of the exercise of the option to acquire securities, unexpected issues in obtaining regulatory approval, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Cayden Resources Inc., investors should review the Company's public filings available at www.sedar.com.

Neither the TSX Venture Exchange nor any other regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Contact Information