N@N

Potential stoping block on 398N Lode is 52m long, 1.03m wide, and, has an average grade of 13.08 g/t gold.

Gold assay results have been received from driving of the 398N Lode.

Sampling from the first 14m of development was previously reported with an average grade of 9.9g/t gold over the 2.99m width of the development. (See News Release dated July 13^th, 2010)

Since then, driving on 398N Lode has advanced a further 28m north west and 14m south east for a total driving distance of 90m. Assay results have been received to give a total of 52m averaging 9.2g/t gold over 2.21m width. Values over a narrower stoping width, adjacent to the hanging wall shear, average 13.08g/t gold over 1.03m width for the 52m.

Development is proceeding on seven other headings with encouraging results. These will be reported on fully as assays are available.

Qualified Person and Quality Control and Assurance

Technical aspects of this news release were prepared and verified by William Donald Goode, a member of the AusIMM and Technical Director of Cadan Resources. He is the qualified person as required by NI 43-101, and is the technical person responsible for this news release. The qualified person has verified the data disclosed in this news release, including sampling, analytical and test data underlying the information and opinions contained in this news release.

Quality Assurance and Quality Control (QA/QC)

Assays reported have been verified by the company's QA/QC procedures. All samples have been prepared & assayed by McPhar Geoservices (Phil) Inc., in Manila, an ISO 9001 certified laboratory, with the inclusion of appropriate blanks and standards for which 1.5 – 2kg samples were pulverized to 90% passing 200 mesh or <75 microns. Assays for gold were 50g fire assay, (0.05 ppm), AAS finish.

On behalf of the board of directors,

Robert Butchart, President / CEO

For further information visit our website at [ www.cadanresources.com ], email: [ info@cadanresources.com ].

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 ].

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.