Cloudbreak Resources Ltd.

Cloudbreak Resources Ltd.

November 23, 2010 13:14 ET

Cloudbreak Resources Ltd. Closes Oversubscribed Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 23, 2010) - Cloudbreak Resources Ltd. (TSX VENTURE:CDB)(FRANKFURT:C6K) (the "Company") is pleased to report that its non-brokered private placement announced on October 25, 2010 has completed. The Company is particularly pleased with the significant level of institutional interest in this financing, which saw participation from well respected funds such as Matrix, Rothschild, Aran Asset Management, Tiverton Trading, Dharma Natural Resource Fund, Spartan Master Offshore Fund, 49 North Resources and Sequoia Aggressive Growth Fund.

The financing was oversubscribed ultimately raising $3,313,500 at prices of $0.40 and $0.55. The Company issued 7,033,750 non-flow-through shares to raise $2,813,500 at $0.40 and 909,090 flow-through shares to raise $500,000 at $0.55. No warrants were issued as part of the two Offerings.

The Offerings were led by Aberdeen Gould Capital Markets Ltd., an Exempt Market Dealer, and involved extensive selling group participation. The Company has paid cash finders' fees equal in the aggregate to 8% of the gross proceeds from the Offerings and, in addition, issued finders' 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.

The finders' warrants relating to the non-flow-through Offering will be exercisable until November 19, 2012 at the price of $0.40. The finders' warrants relating to the flow-through Offering will be exercisable until November 19, 2012 at the price of $0.55. All shares issued pursuant to the Offerings and any shares issued on exercise of finders' warrants within four months after closing will be subject to a hold period expiring on March 19, 2011.

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.


"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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