Canadian Resources House Limited
CNQ : CRHL

Canadian Resources House Limited

December 05, 2006 10:55 ET

Canadian Resources Announces Completion of Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 5, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Canadian Resources House Limited (the "Company") (CNQ:CRHL) announced that it has completed its previously announced private placements pursuant to underwriting agreements with each of Haywood Securities Inc. and PowerOne Capital Markets Limited (collectively, the "Underwriters") under which the Company raised a gross total of $11.9 million through the sale of 7,000,000 units ("Class A Units") at a price of $0.90 per unit and 3,500,000 units ("Class B Units") at a price of $1.60 per unit (collectively, the "Offering"). All of the securities issued under the private placement are subject to a 4-month hold period.

Each Class A Unit consists of one common share of the Company and one half of one Class A common share purchase warrant (a "Class A Warrant"), with each whole Class A Warrant being exercisable into one common share of the Company on or before June 4, 2008 at an exercise price of $1.50 per common share. Each Class B Unit consists of one common share of the Company and one half of one Class B common share purchase warrant (a "Class B Warrant") with each whole Class B Warrant being exercisable into one common share of the Company on or before June 4, 2008 at an exercise price of $2.40 per common share.

The Class A Warrants and the Class B Warrants will be subject to forced conversion at the Company's election if the common shares of the Company close at or above $2.25 in respect of the Class A Warrants and $3.60 per share in respect of the Class B Warrants (on a volume weighted average basis) for 25 consecutive trading days after April 5, 2007.

The Underwriters received a commission of 6% of the gross proceeds of the Offering which was satisfied in part by the issue of 105,000 Class A Units to each of Haywood Securities Inc. and PowerOne Capital Markets Limited at a deemed price of $0.90 each and 75,000 Common Shares to Haywood Securities Inc. at a deemed price of $1.60 each. In addition, the Underwriters were granted Compensation Options equal to 6% of the Class A Units and 6% of the Class B Units sold pursuant to the Offering. The 420,000 Compensation Options issued in respect of the Class A Units are exercisable at $0.90 per Class A Unit and the 210,000 Compensation Options issued in respect of the Class B Units are exercisable at $1.60 per Class B Unit during the period of 18 months following closing.

Net proceeds from the Offering will be used to fund the advancement of the Kitongo Uranium Project in northern Cameroon to pre-feasibility study, finalize JV for acquisition of "brown-field" projects in Eastern Europe and Africa, initiate reconnaissance and continue investigation of other areas of interest in Africa, and for working capital and general corporate purposes.

About the Company:

Canadian Resources House Limited is listed on the Canadian Trading and Quotation System Inc. (CNQ) and its trading symbol is "CRHL". The Company's wholly owned subsidiary, Nu Energy Corporation ("Nu Energy"), is a private company incorporated under the laws of the British Virgin Islands. Nu Energy, through its Republic of Cameroon subsidiary, owns a 92% interest in both the Kitongo and Lolodorf uranium deposits located in the Republic of Cameroon, Africa. In addition Nu Energy is looking at acquisitions of other brownfields projects in Africa, and Central and Eastern Europe. The Company has previously announced that Nu Energy entered into a memorandum of understanding with Edlow Resources Limited and Africa Nuclear Fuel to incorporate a joint venture whose principal business will be the sourcing, purchasing, transportation and upgrading of low-grade uraniferous secondary material as well as the subsequent marketing of the upgraded product.

With an approximate $11 million addition to working capital, the Company will continue to build its profile in the uranium sector by way of establishment of business relationships within all aspects of the nuclear fuel cycle.

Anthony Frizelle, President and CEO

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

Forward-Looking Information:

This release includes certain statements that could be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve or resource potential, exploration drilling, exploitation activities and events or developments that Canadian Resources House Limited (the "Company") expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

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