Central Fund of Canada Closes Three Class A Share Transactions

On April 16, 2009, Central Fund of Canada Limited completed the sale of 20,000,000 Class A Shares of Central Fund at a price of US$10.50 per Class A Share to CIBC (the underwriter), raising total gross proceeds of US$210,000,000.

On August 13, 2009, Central Fund of Canada completed the sale of a further 11,040,000 Class A Shares of Central Fund at a price of US$11.90 per Class A Share to the same underwriter, raising total gross proceeds of US$131,376,000.

The Class A Shares offered were primarily sold to investors in Canada and in the United States under the Multijurisdictional Disclosure System. In each case, the underwritten price of US$11.90 per Class A Share was non-dilutive for the existing shareholders of Central Fund.

On September 8, 2009, Central Fund of Canada filed a final short-form base shelf prospectus qualifying the issue of Class A Shares of Central Fund in an aggregate offering amount of up to US$1,000,000,000 at any time during the next 25-month period.

Cassels Brock & Blackwell LLP acted for CIBC in the sales of Class A Shares with a team that included Norman Findlay, Tom Koutoulakis and Christopher Norton.

CIBC's US counsel was Adam Givertz and Jonathan Handyside from Shearman & Sterling LLP.

Fraser Milner Casgrain LLP acted for Central Fund of Canada with a team that included John Elder, Jules Lewy, Maja Czubernat and Liz Fraser. Dorsey & Whitney LLP acted as the issuer's US counsel with a team that included Christopher Barry, John Hollinrake, Jennifer Coates and Jodie Kaufman.