Cadan Announces Mining Group Limited to Acquire Significant Interest in Comval Project

CADAN RESOURCES CORPORATION (TSX VENTURE:CXD)(FRANKFURT:AOMZ.25) is pleased to
announce that it has signed a binding Heads of Agreement with Mining Group
Limited (ASX:MNE) (Mining Group or MGL) whereby Mining Group may acquire an 80%
interest in the Comval copper-gold project located in the Compostella Valley,
Philippines. Cadan will retain a 20% interest which is free and carried until
the Mining Group has incurred a minimum of AUD$48 million of expenditures on the
Comval Project.


Pursuant to the terms of the Heads of Agreement, Mining Group may acquire an 80%
interest in Philco Mining Corporation ("PMC") which holds exploration permits
EP1 and EP2, comprising the Comval project, as well as assume the right to
receive certain inter-corporate amounts owing by PMC to Cadan, by doing the
following:




--  paying AUD$1,000,000 to Cadan to be advanced to Cadan as a secured loan.
    Upon MGL obtaining shareholder approval for the transaction and
    completing its due diligence reviews, the loan will be deemed repaid in
    full by crediting the loan amount towards the purchase price. In the
    event that the transaction with MGL does not proceed, the loan is
    repayable in 12 months plus accrued interest at the rate of LIBOR plus
    2%. Cadan has granted MGL security over the shares of PMC and EP2 as
    security for the Loan;

--  at closing, MGL will pay to Cadan a further AUD$2,000,000 and issue of
    2,600,000 fully paid ordinary shares of MGL;

--  when (and if) MGL's share price trades at or above AUD$1 for 30
    consecutive days, MGL will issue to Cadan a further 2,600,000 shares;
    and

--  subject to certain conditions being met within 24 months of closing of
    the Transaction (which period may be extended by up to a further 24
    months) MGL will pay a further AUD$1,000,000 to Cadan.



Upon closing of the transaction with MGL, Cadan will retain a 20% free carried
equity interest in PMC, which cannot be diluted until MGL has expended AUD$48
million in exploration and development costs on the Comval Project. Thereafter
Cadan and MGL will be required to contribute to further costs in proportion to
their interest or be diluted.


In addition to the above, on closing MGL will be granted an option to acquire an
80% interest in the Batoto Gold/ Silver project held by Cadan on the following
terms:




--  MGL must exercise the option within 9 months of closing; and

--  if MGL exercises the option to acquire an 80% interest in the Batoto
    Gold/ Silver project, it must pay to Cadan:$3,000,000; and issue a
    further 5,200,000 shares to Cadan.



Robert Butchart, President and CEO of Cadan stated "MGL together with its
financiers is a group with the demonstrated capability of raising the
significant funds that are required to properly explore and develop both the
porphyry copper and the gold stock work assets at Compostela Valley. This
represents an excellent opportunity for Cadan to retain a substantial interest
in the project without having to contribute funding until the project is
significantly advanced. Cadan will be able to focus its resources and efforts to
the advancement of Cadan's core asset, being the T'Boli gold-silver project and
mine."


Mr. Andrew Maurice, Managing Director of Mining Group, stated that "the proposed
acquisition represents an exciting phase in the Mining Group's growth and is
consistent with the company's objective of acquiring commercially significant
mineral properties that can readily be brought into production. The Comval
Project's tenement area covers 4310 hectares, and has had over 24,000 metres of
drilling completed, which we intend to review and reinterpret with the aim of
defining a resource."


The transactions are subject to various conditions precedent, including MGL
obtaining shareholder approval and regulatory approval, and in the case of Cadan
the acceptance of the TSX Venture Exchange.


On behalf of the board of directors,

Robert Butchart, President / 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. Particular risks applicable to this
press release include risks associated with planned production, including the
ability of the Company to achieve its targeted production outline due to
regulatory, technical or economic factors. In addition, there are risks
associated with estimates of resources, and there is no guarantee that a
resource will have demonstrated economic viability as necessary to be classified
as a reserve. There is no guarantee that additional exploration work will result
in significant increases to resource estimates. The reader is referred to the
Company's most recent annual and interim Management's Discussion and Analysis
for a more complete discussion of such risk factors and their potential effects,
copies of which may be accessed through www.cadanresources.com or the Company's
page on SEDAR at http://www.sedar.com.