Cloudbreak Resources Ltd.
TSX VENTURE : CDB
FRANKFURT : C6K

Cloudbreak Resources Ltd.

October 25, 2010 09:30 ET

Cloudbreak Announces Non Brokered Offerings to Raise $3,000,000

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2010) - Cloudbreak Resources Ltd. ("Cloudbreak" or the "Company") (TSX VENTURE:CDB)(FRANKFURT:C6K) is arranging a non-brokered private placement through an Exempt Market Dealer ("EMD") consisting of up to 6,250,000 non-flow-through common shares at the price of $0.40 per share to raise gross proceeds of up to $2,500,000. It is concurrently arranging a non brokered private placement consisting of up to 909,090 flow-through common shares at the price of $0.55 per share for aggregate gross proceeds of up to $500,000.

The Company has agreed to pay the EMD a cash finder's fee equal to 8% of the gross proceeds from the offerings and, in addition, to issue finder's warrants exercisable to purchase that number of non-flow-through common shares which is equal to 8% of the total number of flow-through and non-flow-through shares issued by the Company pursuant to the offerings. The finder's warrants relating to the non-flow-through offering will be exercisable for two years after closing at the price of $0.40. The finder's warrants relating to the flow-through offering will be exercisable for two years after closing at the price of $0.55.

The proposed private placements and finder's fees are subject to TSX Venture Exchange acceptance. All shares issued pursuant to the offerings will be subject to a four-month hold period from the closing date. The proceeds from the offerings will be used for exploration and development of the Company's assets, acquisition of additional assets and general working capital.

ON BEHALF OF THE BOARD

Peter Bryant, President & Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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