Candelaria Mining Corp T.CAN

RE: RE: TD Daily Report?

[brial16]

HERE IS THAT TD DAILY REPORT (TDSI MORNING ACTION NOTES) FROM THIS MORNING ...........DEC 3/10

Canaco Resources Inc.

(CAN-V) C$4.60

Competing License Revoked - Back on Track

Event

Canaco Resources Inc. (CAN-V) provided an update following its meeting

with the Commissioner for Minerals of Tanzania this morning regarding the

small overlapping Mining License (ML) on its Magambazi discovery.

The overlapping ML has been revoked. A final resolution of the issue still

requires the company to purchase the Primary Mining License (PML) that

underlies the ML from its owner, a Tanzanian national. We anticipate this will

follow shortly and we continue to expect the settlement sum will be

immaterial to the company.

Impact - POSITIVE

We believe this issue has caused the stock to significantly underperform its

peer group of exploration stage gold companies over the last two and a half

months. With complete resolution of the issue now appearing imminent, we

would expect the overhang this issue may have created to be removed in short

order.

More importantly, we believe the company’s confidence in a positive final

resolution could trigger the release of drill results from the project, which

have been pending since mid-September. As a result, we expect exploration

results will once again emerge as the primary catalysts for the stock over our

target price horizon.