Fuel Drop Santa Maria Project

Cadillac West Explorations Inc., a British Columbia company, was established in 2004 to pursue a mineral exploration opportunity assembled between 2002 and 2004 near Rouyn-Noranda in north-western Quebec in one of the premier mining districts in the world. Prior to its public listing, approximately $900,000 in private equity funding was raised by the Company and expended primarily on geophysics, geochemistry and diamond drilling of the West Cadillac Project to demonstrate the validity of the exploration models proposed for the area by the project originators.

In January 2006, Eclips Inc., formerly an Ontario-registered technology company listed on the TSX Venture Exchange, agreed to a Reverse Takeover offer by Cadillac West. As of June 30, 2006 Blackmont Capital of Toronto had completed a private placement of approximately 6.44 million shares and 2.83 million two-year warrants for gross proceeds of $3.22 million, and Cadillac Mining Corporation was subsequently listed for trading on Tier 2 of the TSX-V. The total issued capital of Cadillac Mining Corporation as of the conclusion of the combined CEE flow-through and regular share financing at $0.50 was 23.9 million common shares.

Drilling on Cadilac Break Project

The 2006 Quebec driling program met with unexpected difficulties and was not successful in locating significant mineralization on the Cadillac Break. However, the Company remains committed to the pursuit of this exceptional target at a lesser pace than in the initial campaign.

Early in 2007 management determined that the Company should expand exploration activities to include a range of North American opportunities beyond its West Cadillac project. Driven in part by the need to complete CEE flow-through commitments in calendar 2007, the Company acquired four drill-ready prospects in British Columbia, all of which were drilled by the end of the year.