Central Fund Closes U.S.$150,052,500 Class A Share Issue

TORONTO, ONTARIO, Jul 22 (MARKET WIRE) --
Central Fund of Canada Limited ("Central Fund")(TSX: CEF.A)(TSX:
CEF.U)(AMEX: CEF) of Calgary, Alberta is pleased to announce that it has
completed the sale of 11,115,000 Class A Shares of Central Fund at a
price of U.S.$13.50 to CIBC World Markets Inc. (the "Underwriter"),
raising total gross proceeds of U.S.$150,052,500.00. The Class A Shares
offered were primarily sold to investors in Canada and in the United
States under the multijurisdictional disclosure system.

The underwritten price of U.S.$13.50 per Class A Share was non-dilutive
and accretive for the existing shareholders of Central Fund. In keeping
with the policies established by the board of directors of Central Fund,
Central Fund has invested substantially all of the net proceeds of the
issue (after deducting fees payable to the Underwriter and expenses of
the issue) in gold and silver bullion, with the balance of the net
proceeds reserved for additional bullion purchases and working capital
purposes. It is anticipated that the additional capital raised by the
issue will assist Central Fund's objective of reducing the annual expense
ratio in favour of all shareholders of Central Fund.

The new total of issued and outstanding Class A Shares of Central Fund is
140,567,713. The investment holdings of Central Fund are now represented
by approximately 897,982 fine ounces of gold, 44,893,456 ounces of silver
and U.S.$38,385,618 in cash.

The Class A Shares of Central Fund are qualified investments for RRSPs,
DPSPs, RRIFs, RESPs and RDSPs. The Class A Shares are also eligible
investments in the United States for various regulated investors and
accounts.

Central Fund has filed a prospectus supplement to the base shelf
prospectus and registration statement dated March 31, 2008 with the
Canadian securities regulatory authorities and the United States
Securities and Exchange Commission ("SEC") for the offering to which this
communication relates. An investor should read the base shelf prospectus
including the prospectus supplement and any other documents Central Fund
has filed with the securities commissions in each of the provinces and
territories of Canada, except Quebec, and the SEC for more complete
information about Central Fund and this offering. You may obtain a copy
of the base shelf prospectus and a prospectus supplement in respect of
the offering filed in the United States from CIBC World Markets Corp.,
300 Madison Avenue, New York, New York 10017 or request a copy by
telephone at 212-667-7014. You may obtain a copy of the base shelf
prospectus and a prospectus supplement in respect of the offering filed
in Canada from CIBC World Markets Inc., by requesting a copy by fax
416-594-7242 or telephone at 416-594-7270.

Statements contained in this release that are not historical facts are
forward-looking statements that involve risks and uncertainties. Central
Fund's actual results could differ materially from those expressed or
implied by such forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to, those
risks detailed in Central Fund's filings with the Canadian securities
regulatory authorities and the SEC.

Central Fund of Canada Limited (est. 1961) is an exchange tradeable
refined gold and silver bullion holding company. Central Fund's Class A
Shares are qualified for inclusion in many North American regulated
accounts. Bullion holdings are stored on an unencumbered, allocated,
segregated and insured basis in the treasury vaults of a major Canadian
bank and are counted semi-annually in the presence of Central Fund's
auditors and bank representatives. Class A Shares are quoted on the AMEX,
symbol CEF and the TSX, symbol CEF.A (Cdn.$) and CEF.U (U.S.$).

Contacts:
Central Fund of Canada Limited
J.C. Stefan Spicer
President and CEO
(905) 648-7878
Email: info@centralfund.com
Website: www.centralfund.com

Copyright 2008, Market Wire, All rights reserved.

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