Cadan to Re-File Financial Statements for Year Ended December 31, 2013

FEBRUARY 23, 2015 VANCOUVER, BC - CADAN RESOURCES CORPORATION- Symbol: CXD-TSXV ("Cadan" or the "Company") As a result of a review by the British Columbia Securities Commission, we are issuing the following press release to advise that the Company will be issuing Amended and Restated financial statements for the year ended December 31, 2013.

Subsequent to the filing of the Company's audited annual financial statements for the year ended December 31, 2013, the Company became aware of certain areas within the consolidated financial statements, which will be amended and restated. The following information sets out the adjustments to be made to the consolidated financial statements.

(a) The Company previously valued convertible notes by determining the fair value of the debt and allocating the residual to the conversion feature in accordance with IAS 32, Financial instruments: Presentation. The Company then separately determined the fair value of the warrants issued with the convertible notes using the Black-Scholes option pricing model in accordance with IFRS 2, Share-based payment, and further reduced the debt amount by the fair value of the warrants. However, the Company has subsequently determined that the correct application is to fair value the debt component and apply the residual to equity, the equity portion representing both the conversion feature and the fair value of the warrants issued. In both cases, the debt is then accounted for using the effective interest method.

The change will result in the debt component of the convertible notes being increased as at December 31, 2013 and 2012, which will result in a reduction to interest expense and a corresponding reduction to deficit for the year ended December 31, 2013 and 2012.

In addition, the Company will reclassify a loss on early retirement of debt, which was previously included within accretion interest expense for the year ended December 31, 2013, to its own line item within the consolidated statement of net loss and comprehensive loss.

(b) The Company's previously filed consolidated financial statements reflected a policy of capitalizing exploration and evaluation expenditures on the balance sheets, in accordance with the guidance set out in IFRS 6, Exploration for and evaluation of mineral resources. IFRS 6 allows companies the choice of capitalizing such costs or expensing them as incurred. Current management believe that expensing the exploration and evaluation expenditures, with the exception of acquisition costs, more accurately reflects the state of the business. Therefore, the Company has voluntarily elected to make this accounting policy change.

The accounting policy change will result in a decrease to exploration and evaluation assets as at December 31,

2013, December 31, 2012 and January 1, 2012 and an increase in net loss for the years ended December 31,

2013 and 2012. In addition, for the year-ended December 31, 2012, the Company's gain on sale of subsidiary will increase, as a result of this accounting policy change, which will result in net assets of Agusan on sale being reduced. Further, as the non-controlling interest is at the subsidiary level, exploration expenditures in the subsidiaries which are now impacting net loss, must be allocated 60% to the non-controlling interest, which will further reduce the value of the non-controlling interest for the years ended December 31, 2013 and 2012.

In the consolidated statement of cash flows, amortization previously included in exploration and evaluation assets will be added back to profit or loss as a non-cash item as exploration and evaluation expenditures are expensed for the years ended December 31, 2013 and 2012.

(c) The Company has reassessed the fair value changes for their Loan to Agusan Metals Corporation and Investment in Metallum Limited (formerly Mining Group Ltd.) and determined that the declines in value at December 31, 2013 were other-than-temporary. Therefore, the Company will restated the consolidated financial statements to recycle the unrealized losses related to those financial instruments through profit or loss, and not through other comprehensive income as originally presented.

This restatement will result in a decrease in other comprehensive loss, and an increase in net loss and deficit. The specific changes will be as follows:

i. Fair value adjustments on the Agusan loan will be recycled to profit or loss as an impairment charge for the year ended December 31, 2013. This adjustment will produce a corresponding increase in deficit and decrease in reserves;

ii. Unrealized losses on shares held for resale for the year ended December 31, 2013 will be recycled to profit or loss as an impairment charge. This adjustment will have a corresponding increase in deficit and decrease in reserves; and

iii. Cumulative unrealized losses on shares held for resale as of December 31, 2012 will be recycled to

profit or loss as an impairment charge in the year ended December 31, 2013. This adjustment will have a corresponding increase in deficit and decrease in reserves.

(d) The changes as a result of the restatements and accounting policy change will result in changes to profit or loss for the years ended December 31, 2013 and 2012. As such, the Company will restate their basic and diluted income (loss) per share.

(e) The changes as a result of the restatements on the statement of cash flows for the years ended December 31,

2013 and 2012 are discussed above with respect to the changes in the convertible notes and expensing of exploration and evaluation expenditures. However, some items are the result of specific reclassifications and are discussed herein.

For the year ended December 31, 2013, the credit facility will be increased as the credit facility had not been adjusted for foreign exchange as originally filed.

For the year ended December 31, 2013, the convertible notes will increase as the cash received for that year was understated as originally filed.

For the year ended December 31, 2013, the Company will reclassify a portion of the change in non-cash working capital for amounts and advances receivable, to properly reflect the receipt of contingent consideration on the sale of its interest in Agusan.

Foreign exchange will be adjusted for both of the year ended December 31, 2013 as a result of the changes in the credit facility, accounts payable and retirement benefit obligation, and for the year ended December 31,

2012 due to the gain on sale of subsidiary.

(f) For the year ended December 31, 2013, a cash payment of for termination payment was incorrectly added back to net loss for the year on the consolidated statement of cash flows. This will be adjusted in the restated consolidated statement of cash flows.

For further information visit our website at www.cadanresources.com ; email us at info@cadanresources.com , or contact:

On Behalf of the Board, Peter Main

Director and President

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.

This press release contains forward looking statements that involve risk and uncertainty. The ability of Cadan to complete its restructuring and financing objectives is subject to market conditions and regulatory approval, and there can be no assurance that those objectives will be reached as described herein. The restart of operations at the T'Boli mine involves are subject to completing the restructuring and financing plan as currently contemplated, in addition to other risks associated with operating a mine.

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