CGA Mining Closes C$40 Million Share Offering

The Shares were sold at C$0.83 per Share. Each Unit is comprised of one 12% senior unsecured promissory note with a par value of US$1,000 (the "Note") issued by CGA Financing Holding Company B.V., a wholly owned subsidiary of the Company (the "Note Issuer") and 250 transferable share purchase warrants issued by the Company (the "Warrants"). The Notes will pay a 12% coupon per annum, paid semi-annually until the earlier of the maturity date (five years) or redemption at the option of the Company following the 24 month anniversary of closing.

Each Warrant entitles the holder to purchase one Share for a period of 36 months from closing at an exercise price of C$1.03 per Share, subject to the Company's right to accelerate the expiry date after 24 months if the volume weighted average trading price of the Shares exceeds 160% of the exercise price for 20 consecutive trading days on the TSX or on the ASX.

The Company has guaranteed the obligations of the Note Issuer under the Notes.

The private placement was marketed on a best efforts basis by way of brokered private placement with Haywood Securities Inc. as agent (the "Agent"). For their services, the Agent received an aggregate commission of 5.0% of the gross proceeds in connection with the Share offering and 4.0% of the gross proceeds in connection with the Note offering.

Masbate Gold Mine

The Masbate Gold Mine is currently under construction and is scheduled for completion in December 2008. Annual production is forecast to be in excess of 200,000 ounces per annum. The project has NI43-101 compliant indicated resources of 3.0 million ounces, low grade indicated resources of 0.4 million ounces, and inferred resources of 1.8 million ounces of which 1.98 million ounces currently report to a probable reserve calculated at US$450/ounce. CGA has entered into a fixed price construction contract with Leighton Contractors Philippines Inc, a wholly owned subsidiary of Leighton Holdings Limited ("Leighton). Leighton is Australia's largest project development and construction group. All key permits for construction of the Masbate Gold Mine are now in place including the Mineral Production Sharing Agreement (MPSA - initial term of 25 years and extendable) and the Mineral Processing Permit.

About CGA

CGA is a development company focused on the construction the Masbate Gold Project in the Philippines, with commercial production forecast for the first quarter 2009. The Company also has the 51% owned Mkushi pre-feasibility stage copper development project in Zambia and the 51% owned Segilola gold exploration project in Nigeria, which is one the most advanced gold exploration projects in the country. -- www.cnxmarketlink.com