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Canadian Gold Hunter Corp.: Private Placement Closed

May 12, 2004 - 02:59 ET


VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 12, 2004) - (CGH - TSX) Canadian Gold Hunter Corp. (the "Company") is pleased to report that the private placement announced on April 7, 2004 has closed. The additional non-brokered portion of the private placement, announced on April 20, 2004, is expected to close shortly.

The Company sold, on a private placement basis, 2.5 million Flow-Through Common Shares at a price of $1.25 per share for gross proceeds of $3.125 million. In addition, the Company sold 200,000 Units (non-Flow-Through) at a price of $1.25 per unit for gross proceeds of $250,000. Each Unit is comprised of one Common Share and one-half of a Share Purchase Warrant. Each whole Warrant is exercisable into one Common Share over a period of 18 months at a price of $1.50 per share. In the event that the Common Shares trade at an average price above $1.75 for a period of 10 consecutive trading days at any time after the Closing Date, then the warrants shall expire 30 days from the date the Company gives notice of such event to the warrantholders.

The Company has received regulatory approval and the securities have been issued to the investors. Dundee Securities Corporation acted as agent in connection with the private placement and will receive a 6% commission payable one-half in cash ($101,250) and the balance in Units (81,000 Units). Each Unit is comprised of one Common Share and one-half of a Share Purchase Warrant. Each whole warrant is exercisable into one common share for a period of 18 months from closing at a price of $1.50 per share. In the event that the Common Shares trade at an average price above $1.75 for a period of 10 consecutive trading days at any time after the Closing Date, then the warrants shall expire 30 days from the date the Company gives notice of such event to Dundee Securities Corporation.

The gross proceeds of the Flow-Through Shares shall be used for the exploration of the Company's current Canadian exploration projects. The Company will use its best efforts to ensure that the exploration expenditures qualify for the investment expenditure credits for purposes of the Income Tax Act (Canada). The gross proceeds of the Units will be used for general working capital purposes.

ON BEHALF OF THE BOARD

Richard J. Bailes, President


FOR FURTHER INFORMATION PLEASE CONTACT:

Canadian Gold Hunter Corp.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
Website: www.canadiangoldhunter.com



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