Capital Alliance Group Inc.

Capital Alliance Group Inc.

January 23, 2007 16:00 ET

CAG Reports $4.18M Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 23, 2007) -


Capital Alliance Group Inc. (TSX VENTURE:CPT) reports that it has negotiated concurrent brokered (through Canaccord Capital Corporation) and non-brokered private placements for total proceeds of $4.183 million (including Canaccord's over-allotment option). Three accredited investors are purchasing most of the offering. The private placement is fully committed and proceeding to closing documents.

The proceeds will be raised through the offer of units (the "Units") at $0.75 per Unit. Each Unit consists of one common share and one half of one share purchase warrant, each warrant entitling the holder to purchase one common share at a price of $0.80 each for a period of two years. Canaccord will be paid a cash commission equal to 7% of the gross proceeds raised from purchasers introduced by Canaccord, and agent's warrants equal to 7% of the Units sold to purchasers introduced by Canaccord. Each agent's warrant will be exercisable, for a period of two years, into one common share at a price of $0.75 each. CAG will also pay certain expenses incurred by Canaccord and a small administration fee in association with the offering. The offering is subject to receipt of TSX Venture Exchange acceptance.

The securities issued in these private placements will be subject to a hold period of four months from the closing date. The private placement is in addition to the US financing currently in progress with BMO Capital Markets of New York.

Capital Alliance Group Inc.

Toby Chu, President & C.E.O.

WARNING: This news release contains forward-looking information. The reader is cautioned that assumptions used in preparing such information, although considered accurate at the time of preparation, may prove incorrect. The actual results achieved may vary materially from the information provided herein. Consequently, there is no representation by the company that actual results achieved will be the same as those forecast.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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