Cadence Resources Announces Plan to Acquire Michigan Antrim Production and
Drilling Locations

Tuesday, January 17, 2006


Cadence Resources Corporation (CDNR) is pleased to announce that it has entered
into an agreement to purchase from its joint venture partner, O.I.L. Energy
Corp. (together with its affiliates) its position in the Hudson project in the
Michigan Antrim Shale. Most of the assets to be acquired are already partially
owned by Cadence. The acquisition increases the Cadence ownership in the project
area from 49%to 96% working interest in many of the fields, and allows Cadence
to control the related pipeline and production facilities.

The purchase price is approximately $27.5 million, subject to certain
adjustments. Management is currently evaluating several potential financing
options and will announce a definitive financing package within the next few
weeks. The closing is anticipated to occur prior to March 1st 2006.

As a result of this acquisition, Cadence expects to add more than 3,000 Mcf per
day to its existing production, and will be able to increase production at a
faster pace as new production units come online. Additionally, the acquisition
adds over 11,000 net acres to the Company's inventory and 42 new potential
Antrim drilling locations. The Company's engineers estimate the acquisition adds
22 BCF in proven reserves.

William Deneau, President and Chief Executive Officer commented, "Production to
date in the Hudson project area has exceeded expectations. We are excited to
have the opportunity to increase our position in this area. This acquisition
puts us in a strong position to meet our projected production target of 10
million cubic feet per day by March 31, 2006 and our 100 BCF proven reserves
target by June 30th, 2006. Because we are already actively working in the Hudson
Township area, this acquisition will allow us to earn a greater return for our
efforts."

About Cadence Resources Corporation


Cadence Resources Corporation engages in the acquisition, exploration,
production, and development of oil and natural gas properties. The Company's
current expansion activities are focused on two key non-conventional plays,
Michigan Antrim and New Albany Shale in Indiana. Cadence Resources was formed in
1969. It was formerly known as Royal Resources, Inc. and changed its name to
Royal Minerals, Inc. in 1983. Further, it changed its name to Consolidated Royal
Mines, Inc. in 1994; to Royal Silver Mines, Inc. in 1995; and to Cadence
Resources Corporation in 2001. On October 31, 2005, it closed on a reverse
merger with Aurora Energy, Ltd.


www.auroraogc.com.



Statements that are not historical facts such as increases in proved reserves,
revenues, returns, value and growth, sources of financing, and the future
performance of management are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Although we believe that our expectations are based on
reasonable assumptions, we can give no assurance that our goals will be
achieved. Important factors that could cause our actual results to differ
materially from those included in the forward-looking statements include the
timing and extent of changes in commodity prices for oil and gas, drilling and
operating risks, the availability of drilling rigs, uncertainties about the
estimates of reserves, the availability of transportation pipelines, changes in
laws or government regulations, unforeseen engineering and mechanical or
technological difficulties in drilling the wells, operating hazards, weather
related delays, the loss of existing credit facilities, availability of capital,
and other risks more fully described in our filings with the Securities and
Exchange Commission. All forward looking statements contained in this release,
including any forecasts and estimates, are based on management's outlook only as
of the date of this release and we undertake no obligation to update or revise
these forward looking statements, whether as a result of subsequent developments
or otherwise.


     Contact:
          Cadence Resources Corporation
          William W. Deneau, President and CEO
          Lori M. King, Chief Financial Officer
          (231)941-0073