CanAustra Resources Inc.

March 14, 2005 20:29 ET

CanAustra Resources Inc.: Non-Brokered Private Placement-$500,000


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANAUSTRA RESOURCES INC.

TSX VENTURE SYMBOL: CTA

MARCH 14, 2005 - 20:29 ET

CanAustra Resources Inc.: Non-Brokered Private
Placement-$500,000

CALGARY, ALBERTA--(CCNMatthews - March 14, 2005) - CanAustra Resources
Inc. ("the Company") (TSX VENTURE:CTA) is pleased to make the following
announcement:

NON-BROKERED PRIVATE PLACEMENT

The company has arranged a non-brokered private placement of up to
6,250,000 units at a price of $0.08 per unit to raise gross proceeds of
$500,000. Each unit will consist of one common share and one common
share purchase warrant. One common share purchase warrant will be
exercisable, over a period of two years, to acquire one additional
common share at a price of $0.12 when exercised within the first year
and $0.15 when exercised within the second year. The securities,
issuable in the private placement, including any common shares issued on
the exercise of warrants, will have a hold period of four months from
the closing. A finders fee is payable in respect of this placement.

The gross proceeds of up to $500,000 are intended to be used to fund
exploration activities in South Korea ($100,000), the investigation of
new projects ($150,000) and to provide working capital ($250,000). The
private placement is subject to acceptance for filing by the TSX Venture
Exchange.

These securities will not be registered with the US Securities and
Exchange Commission and may not be offered or sold within the United
States without registration or an applicable exemption from the
registration requirements of the United States Securities Act of 1933
and any applicable State securities laws.

On behalf of CanAustra Resources Inc

Malcolm L Stevens, Chairman and President

Statements in this press release other than purely historical
information, including statements relating to the Company's future plans
and objectives or expected results, constitute forward-looking
statements. Forward-looking statements are based on numerous assumptions
and are subject to all of the risks and uncertainties inherent in the
Company's business, including risks inherent in mineral exploration and
development. As a result, actual results may vary materially from those
described in the forward-looking statements.
CanAustra Resources Inc.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    CanAustra Resources Inc.
    Malcolm L Stevens
    +612 9247 5355
    +612 9247 5344 (FAX)
    mls@canaustra.com.au
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.