UPDATE 1-Caledon in advanced talks with two suitors -source

* Talking to Indian, Chinese suitors -source

* Hopes to strike deal by July 23 AGM -source

* Shares up 10 percent

(Adds background, Polo, coking coal)

By Quentin Webb

LONDON, July 10 (Reuters) - Caledon Resources Plc (CDN.L) (CCD.AX), the coking coal company, is in advanced takeover talks with two possible buyers from China and India, a person familiar with the matter said on Friday, lifting its shares.

Caledon hopes to agree a deal by July 23, when it holds its annual general meeting (AGM), the person said. Caledon produces and explores for coking coal, which is used in steelmaking, in Queensland, Australia.

The company was not available for comment.

It shares were up 10.1 percent at 60 pence at 1028 GMT.

On Thursday, Caledon's shares leapt 16 percent to 54.5 pence. The Financial Times reported the move was driven by hopes an offer at about 80 pence a share could soon emerge.

In February, Caledon said it had hired RBC Capital Markets to conduct a strategic review that would solicit interest in the company and its assets, after it received a conditional expression of interest in the company.

Any deal is likely to require the approval of major shareholder Polo Resources Ltd (3PO.L), which holds 26.3 percent of Caledon. It bought Caledon shares at an average price of about 90 pence, the person familiar with the matter said.

In May, Goldman Sachs JB Were forecast Australian exports of coking coal to China would rise sharply in 2009, by almost 6 million tonnes. [ID:nSYD483489] (Editing by Douwe Miedema and Dan Lalor)