Cayden Resources Inc.
TSX VENTURE : CYD

Cayden Resources Inc.

October 26, 2011 16:32 ET

Cayden Resources to Raise Up to CAD$10 Million Through a Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2011) - Cayden Resources Inc. (TSX VENTURE:CYD) ("Cayden" or the "Company") is pleased to announce that it has entered into a letter of engagement with a Syndicate lead by Euro Pacific Canada Inc. and includes Fraser Mackenzie Limited (the "Agents"), pursuant to which the Agents have agreed to place, on a best efforts basis, up to 5,000,000 units (the "Units") of the Company at a price of CAD$2.00 per Unit (the "Offering"). Each Unit consists of one common share plus one half of one common share purchase warrant with each whole purchase warrant exercisable into a common share at a price of $3.00 for a period of 24 months from closing (the "Warrant"). In the event that the Company's common shares trade at a closing price on the TSX Venture Exchange of greater than $5.00 per share for a period of 20 consecutive trading days at any time after four months after the Closing Date, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.

The Agents will receive a cash commission of 6% of the gross proceeds raised and share purchase warrants entitling the Agents to purchase, at a price of $2.00 per share within 24 months after closing of the Offering, common shares of the Company equal to 10% of the aggregate number of Units sold pursuant to the Offering.

The Company intends to use the net proceeds of the Offering to fund the advancement of the Company's Morelos Sur project in Mexico and for general corporate purposes.

Closing of the Offering is anticipated to occur on or before November 15, 2011 and is subject to certain conditions including, but not limited to the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange.

Cayden has also completed its due diligence on the Quartz Mountain silver-gold project in Nevada and has decided to proceed with the option agreement announced May 19, 2011; the effective date of the completed agreement will be today.

On Behalf of the Board,

Ivan Bebek, President and CEO

About Cayden Resources

Cayden is a well financed junior mining company focused on delivering shareholder value through the acquisition, exploration and development of precious metal projects located throughout the Americas. The management team at Cayden is highly experienced with an impressive track record of success in the discovery, development and financing of mineral projects. 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 under the symbol "CYD".

For more information on Cayden Resources, please visit our website at www.caydenresources.com.

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 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.

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

Contact Information