T'boli Mine Update -- Decline Reaches First Ore - Seite 2

All silver results from the areas are still pending.

The resource model on which the T'Boli published mineral resource estimate is based models gold grades in this location within a range of 1.2 - 1.5g/t Au, highlighting the positive reconciliation achieved in this first area. A broader oxidized low grade (0.5 - 1.5g/t Au) zone of alteration has been identified through underground channel sampling extending past the main ore vein, which is in line with the current mineral resource model.

Development of the Main Decline to the 515 level continues in accordance with the revised mine design which has been prepared by CSA Global from Perth, Western Australia ("CSA Global"). A site inspection was completed by mining engineering and geological consultants from CSA Global in September 2016 to review progress to date and enable CSA Global to finalize the revised T'Boli Mine model. Cadan expects to receive the final version of the mine model by the mid October 2016. CSA Global's process will also include a revised resource reserve estimate which Cadan also expects to be in a position to release during October.

About CSA Global Pty Ltd

CSA Global is an independent mining, geological, technology and management consulting company servicing the international mining industry for more than 30 years. CSA Global provides multi-disciplinary services to resource industry clients worldwide from its offices in Australia, Indonesia, Singapore, South Africa, Russia, United Kingdom, United Arab Emirates and Canada.

For more information about CSA Global please refer to: www.csaglobal.com

Steve Rose, FAusIMM CP (Geo), a "Qualified Person", within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release.

On Behalf of the Board,

Peter Main
Interim President and CEO
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For further information visit our website at www.CadanResources.com; email us at [e-mail]

Phone: [phone] Fax: [phone]

Neither 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.

Caution Regarding Forward-Looking Statements

This news release contains certain "forward-looking statements". All statements, other than statements of historical fact that address activities, events or developments that the Corporation believes, expects or anticipates will or may occur in the future are forward looking statements. These forward-looking statements reflect the current expectations or beliefs of the Corporation based on information currently available to the Corporation. Such forward-looking statements include, among other things, statements relating to the Corporation's entry into an agreement in respect of the right to earn a 50% undivided interest in the Property and the proposed terms thereof.