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Gold/Mining/Energy : CALEDONIAN PACIFIC MINERALS...MAJOR DISCOVERY? -- Ignore unavailable to you. Want to Upgrade?

To: James22 who wrote (8)	7/20/1998 3:08:00 PM
From: Kim Oishi & Associates, Ltd.	Read Replies (1) \| Respond to of 31

James, Thank you for your message. To be on the conservative side I would estimate that Caledonian will have between C$0.25 to C$0.30 per share in cash after Base Metals advances the A$10,900,000. This does not change your point. I believe that the reasons for the stock trading down are: -the market for gold and base metals exploration companies is at its worst in years due to falling commodity prices and post Bre-X sceptism (I have not added to your knowledge here); -Caledonian has used its funds to acquire a large geologically attractive land package, and (with the help of extensive geophysical and geochemical work programs) identify several prospects that deserve drilling, but has yet to hit a major mineralized zone in drilling completed; -Caledonian has a large retail shareholder base in Vancouver and Australia (particularly around Brisbane), but is relatively unknown in Toronto, The U.S, and Europe and has little exposure in the institutional market; and, -Caledonian has not received the funds yet. Notwithstanding the above, in my opinion, Caledonian should not be trading down to C$0.05. Despite the tough market some sophisticated investors and large brokers are still selectively acquiring shares of exploration companies. For the last several months Terry O'Leary and Caledonian have been focused on the tax effective financing and on defining drill targets at Meretrice; now as they are expecting major funds Caledonian is planning the following actions to improve shareholder value (including liquidity and exposure). - a major exploration program is being worked up with the goal of defining at least one major deposit on the island of New Caledonia, this program will consider Meretrice, as well as Nakety, St. Louis and Edison. The Company has a wealth of geological data on Nakety, St.Louis and Edison and is convinced that each of these prospects should be drilled. Now Caledonian will have the funds to work on multiple drill programs; - Caledonian is working on a 20F filing in the U.S. which will allow brokers in many states to recommend the stock; - Caledonian will spend more money and time on getting the story out. In the past, the Company has felt that it should be focusing its manpower and funds "in the ground"; this policy will benefit Caledonian shareholders in the long run. When Caledonian receives its major financing, the management will be in a position to fund exploration and "promotions". In terms of specific plans to improve Caledonian's exposure and shareholder base: 1. David Whitfield has been appointed as Chairman & Executive President; his main responsibilities are on the finance side, where he has an extensive background. 2. Caledonian will come to North America this fall (Terry O'Leary, Daved Whitfield and a geologist for a road show to present the Company's exploration plan after the new funding is in place. 3. Caledonian will participate in mining and investment conferences in Canada and the U.S. starting this fall. First one will likely be in San Francisco this November. 4. Caledonian's website (www.caledonian-pacific.com) is now updated; the Company will start using the internet more effectively (links to other sites & advertising) to get more exposure. Any suggestions here will be appreciated as we are new to the internet. 5. Caledonian will look for new financial and mining partners that are attracted to its unique land position on New Caledonia to help improve exposure. I have been advised by a few of my associates that Caledonian should look to Europe where New Caledonia is known as a mining country. (New Caledonia is a French Territory that contains about 20% of the global nickel reserves.) I agree that the story is great and have a great deal of trust and respect for the Company's management team. If Caledonian can complete the financing it will move to the next level of its development as a public company including increased exposure to new investors. The best way to help the share price is to have the funds to make a discovery - it looks like Caledonian management has given the shareholders a shot at finding something significant. I am a bit long winded, but I hope this answers your questions. By the way I and most of my family and friends are also shareholders. Best Regards, Kim Oishi