Mining update

RNS Number:5189P
Caledon Resources PLC
09 September 2003



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

  Caledon Signs Memorandum of Understanding with Jinyou Geological Exploration
 Limited: Further focusing on Acquisitions of Advanced Stage Gold Projects and
                             Mining Assets in China

   *Caledon acquires a first right of offer to establish exploration joint
    ventures with one or more of Jinyou's current mining and exploration assets
    in China

   *Jinyou is the gold operating arm of the China National Gold Group Limited
    ("CNGGL")

   *The CNGGL, through Jinyou, operates over thirty gold mines throughout
    China and are owners of a significant gold reserve portfolio



Caledon Resources PLC is pleased to announce the signing of a Memorandum of
Understanding ("MOU") with Jinyou Geological Exploration Limited of CNGGL. The
MOU was signed in Beijing and marks a new development in Caledon's strategy
focused on the exploration and acquisition of advanced stage gold projects in
China. China National Gold Group Limited (CNGGL) owns more than thirty gold
mines and significant gold resources throughout China in addition to having a
detailed understanding of the Chinese mining and exploration system. Jinyou is
the gold operating arm of CNGGL.

Under the terms of the MOU, Jinyou will offer for joint venture to Caledon all
of its gold tenements throughout China. A formal joint venture will be formed on
one or more of Jinyou's projects if judged suitable for hosting multi-million
ounce gold deposits, once Caledon has conducted a comprehensive technical review
of their gold mining operations.

Since March 2003, Caledon has assembled a portfolio of advanced stage
exploration assets in Southern China through the establishment of joint ventures
at the Gaolong/Badu and Longtoushan mining operations, as well as several other
pending joint ventures. Fieldwork has commenced on both properties where
detailed mine-site target definition work is being combined with regional
geological reconnaissance. Both the Gaolong/Badu and Longtoushan agreements
involve Caledon's Co-operative Joint Venture company in Guangxi, which is
partnered by the provincial arm of the CNGGL.

George Salamis, Managing Director of Caledon remarked: "This new development is
an exciting opportunity for Caledon, bringing us accelerated exposure to some of
the country's most advanced gold mining and exploration projects." Mr. Salamis
added; "This recent development is in-line with the company's focused strategy
of rapidly enhancing shareholder value through the acquisition of advanced stage
gold exploration projects in and around active mines in China. The joint
ventures to be formed with Jinyou will be a natural complement to other high
potential gold projects such as Gaolong and Longtoushan that already reside
within Caledon's portfolio.


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

                               Stephen R Dattels

                         [e-mail]

                                 George Salamis

                         [e-mail]

                        Donal Douglas, Investor Relation

                         [e-mail]


                             Caledon Resources PLC

                18 Upper Brook Street,  London W1K 7PU,   England

         Telephone [phone] Facsimile [phone]




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