caledon resources acquisition update, page-2

Extract from CDN.L announcement 31.12.10

"...While GRAM had expected to be in a position to satisfy or waive these pre-conditions no later than 31 December 2010 this has not been the case with the Chinese approval process taking longer than originally foreseen.



As a result of this delay it is unlikely that the Possible Acquisition will be completed prior to 28 February 2011 which is the maturity date for repayment of the 15.4m and A$4m loans due to Polo Resources Limited. GRAM is committed to completing the acquisition. GRAM has advised Caledon that it is seeking funding solutions to help Caledon meet its requirements. It is Caledon's intention to extend the Non-Solicitation Agreement in early January 2011.



Mr Li Jinming, Chairman of GRAM said: "GRAM remains committed to completing the acquisition and is actively engaged with Chinese regulators in the approval process."