Cadillac Ventures Inc V.CDC.H

RE: 1

[NETS]

2003-08-07 17:36 ET - News Release Mr. Sam Halbouni reports UPDATE FROM CHINA Pan Asia Mining has exercised its rights through its wholly owned subsidiary VVS1 Ltd. to take operational control of 701 mining operations. During the board of directors meeting of Mengyin VVS1 Diamond Corporation Ltd. (herein referred to as the co-operative enterprise) the board of directors gave a unanimous vote to the following resolutions: "The board of directors that Party B (VVS1 Ltd.) of the joint venture contract has effectively exercised it rights over the operations of the co-operative enterprise since Aug. 1, 2003, in accordance to the joint venture contract and charter of association. As such, Party B (VVS1 Ltd.) will share in all the profit (losses) assets and liabilities incurred by the corporative enterprise. "The board confirms the authority of the chairman of the co-operative enterprise as the sole legal representative and authority in accordance joint venture contract and charter of association. "The board also empowers the chairman of the co-operative enterprise to oversee the operations." On Dec. 20, 2002, James Poe, co-chairman of Pan Asia Mining, was appointed chairman of the co-operative enterprise. With respect to the land use rights the company wishes to inform its shareholder that it has worked closely with its China partner to ensure that the its rights are protected with respect to the land use rights. As such the company has entered into an agreement with the co-operative enterprise and its China partner which calls for the related mining operations land use rights to be transferred into the co-operative enterprise as soon as possible, with all costs relating to the transfer being the responsibility of the China partner. These land use rights will be transferred into the co-operative enterprise a value in accordance to the joint venture contract dated Feb. 3, 1994. However, the process of transferring the land use rights can be a long process some estimates of up to six months. The co-operative enterprise has therefore agreed to enter into a rental agreement with the China partner that will give the co-operative enterprise unrestricted, unencumbered and immediate use of the land use rights owned by Party A as at Feb. 3, 1994, that are related to the mining operations. The co-operative enterprise will have the all rights to the land use rights as it would if the land use rights would have been transferred to the co-operative enterprise already. The co-operative enterprise will only be responsible to pay the annual operating cost of the land use rights to be transferred. This agreement will stay in effect until all related land use rights have been transferred. As part of the transfer of land use rights the property covered by land use rights must be evaluated at their current market price. Although this process has not been completed it is very clear that as a result of the increase in land values in China since 1994 there will be a significant difference between today's value and the value on Feb. 3, 1994. This increase in value under the terms of this new agreement will be for the benefit of the co-operative enterprise. With respect to the qualified person and SRK NI 43-101 compliant technical report, once received, the company will immediately release it to the public and complete a revised AIF and other disclosure documents as required by the British Columbia Securities Commission.