Mining Update

RNS Number:9033O
Caledon Resources PLC
21 August 2003


               Caledon Resources PLC ("Caledon" or the "Company")

                                 Mining Update

 Caledon Concludes Gaolong/Badu Joint Venture Agreement, Receives Approval for
                   Exploration Ground Surrounding Longtoushan


   *Formal Agreement signed covering Gaolong and Badu Gold Mines, in addition
    to neighbouring gold exploration areas totaling 422.9 km2
   *Exploration Licences granted covering 287.5 km2 surrounding the
    Longtoushan Gold Mine


Following the recent signing of a Letter of Intent, as announced on 4 August
2003, Caledon is pleased to announce the successful completion of a formal joint
venture agreement covering the Gaolong and Badu gold deposits in Guangxi
Province, Southern China. Both areas have a history of active gold mining with
the deposits ranking amongst the major gold producers in the Province.

Caledon is also pleased to announce that it has recently been granted three new
exploration licenses totaling 287.5 square kilometres at Longtoushan in Guangxi
Province. The newly granted licenses will now become part of the Longtoushan
joint venture itself, adding considerable upside potential for the discovery of
a major gold ore body. The area covers highly prospective geology similar to the
main mine at Longtoushan, which is already subject to a joint venture between
Caledon and the mine owners, the Guangxi Longtoushan Goldmine Company.

Given the successful completion of the Gaolong/Badu agreement combined with the
recently announced Longtoushan agreement and the official granting of 287.5
square kilometres of surrounding exploration ground at Longtoushan, Caledon has
rapidly evolved into the largest mining and exploration tenement holders in
Guangxi Province and the pre-eminent gold explorers in Southern China. With
access to three actively producing gold mines, the Company is now set to
commence exploration work on several advanced properties, all of which have
demonstrated "Carlin-style" bulk tonnage gold potential.

Gaolong-Badu

Caledon has signed a formal Agreement with the Guangxi Tianlin Gaolong Gold Mine
Ltd Co ("GTGGML"). Under the terms of the Agreement, Blackwatch Resources
Limited ("Blackwatch"), a wholly owned subsidiary of Caledon, may earn an 81 per
cent equity interset in the Gaolong and Badu gold projects, as well as a further
422.9 square kilometres of promising exploration ground in the "Golden Triangle"
area of northwest Guangxi.

The Gaolong/Badu project and mine site areas are situated approximately 60
kilometres north-west of the regional town of Tianlin in northwestern Guangxi.
The main target area is the Gaolong mine, an active gold mine producing gold
from a number of small open-pit operations, with gold reserves of approximately
400,000 ozs.

Gold grades well in excess of 10 g/t Au are common throughout the deposit, and
it is these higher grade, bulk-tonnage "feeder zones" that will form the main
focus of Caledon's exploration work over the coming months. The mine itself is
ranked in the top two gold producers in the province and has been cited by the
United States Geological Survey (USGS) as having distinct similarities to the
15+ million ounce Betze ore body situated in Northern Nevada, USA. Preliminary
assessment of the area has highlighted the multi-million ounce "Carlin-style"
gold potential on extension from existing mined zones, which to date has only
been mined to shallow depths.

Small scale mining is also in progress at the Badu Mine, situated 12 kilometres
north-east of the Gaolong mine. The Badu mining and exploration tenements are
included within the Gaolong master agreement. The GTGGML's open-pit mining
operations at Badu can be traced in a semi-continuous manner for over four
kilometers along strike, with mining widths averaging 20 to 40 metres. Gold is
recovered in the heap leaching of oxide ores, with average head grades of 1 to 2
g/t gold.

Longtoushan

The Longtoushan gold mine is situated 125 km east-north-east of Nanning, the
capital of Guangxi Province. The current operators are mining a number of
parallel hydrothermal breccia zones, some well in excess of 15 metres wide. The
zones (a sheeted vein system) are encompassed in a mineralised breccia body
which is over 100 metres thick surrounding a volcanic complex. Mined gold grades
of up to 20 g/t have been reported, with the host rocks carrying gold values for
a considerable distance away from obviously mineralised structures. Caledon
geologists are currently on site working on the project in preparation for a
drilling campaign that is scheduled to commence later this year.

Under the terms of the agreement, Caledon, through its wholly owned subsidiary
Blackwatch, has the right to earn an 81 per cent equity stake in the combined
mining and exploration project by spending US$1 million over three years on
exploration, and the payment of US$2.5 million upon a decision to initiate mine
development.

On behalf of the board


Stephen R Dattels George Salamis

Executive Chairman Managing Director

For further information, please visit our website at www.caledonresources.com or
                                    contact:

                               Stephen R Dattels
                [e-mail] tel: [phone]
                                 George Salamis
              [e-mail] tel: [phone]
  Donal Douglas, Manager Investor & Institutional Relations tel: [phone]
                         [e-mail]
                             Caledon Resources PLC


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