Central Fund Announces Proposed Offering

TORONTO, ONTARIO, Apr 07 (MARKET WIRE) --
Central Fund of Canada Limited ("Central Fund") (TSX: CEF.A)(TSX:
CEF.U)(NYSE Alternext US: CEF)(NYSE Amex: CEF.A) of Calgary, Alberta
announced today that it plans to offer Class A Shares of Central Fund to
the public in Canada and the United States under its existing
U.S.$750,000,000 base shelf prospectus dated March 31, 2008 and filed
with the securities commissions in each of the provinces and territories
of Canada, except Quebec, and under the multijurisdictional disclosure
system in the United States pursuant to a proposed underwritten offering
by CIBC. Central Fund will only proceed with the offering if it is
non-dilutive to the net asset value of the Class A Shares owned by the
existing Shareholders of Central Fund.

The remaining amount of approximately U.S.$340,000,000 of the original
U.S.$750,000,000 provided for in the base shelf prospectus is available
for this offering.

Substantially all of the net proceeds of the offering will be used for
gold and silver bullion purchases, in keeping with the asset allocation
policies established by the Board of Directors of Central Fund. Any
additional capital raised by the offering is expected to assist in
reducing the annual expense ratio in favour of the Shareholders of
Central Fund.

Central Fund has filed a base shelf prospectus and registration statement
with the Canadian securities regulatory authorities and the United States
Securities and Exchange Commission ("SEC") for the offering to which this
communication relates. Before you invest, you should read the base shelf
prospectus and prospectus supplements 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 prospectus supplements filed in the
United States from CIBC, 425 Lexington Avenue, 5th Floor, New York, New
York 10017, by fax at 212-667-6303 or by e-mail at
useprospectus@us.cibc.com. You may obtain a copy of the base shelf
prospectus and prospectus supplements filed in Canada from CIBC, fax
416-594-7242 or request a copy by 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. Class A Shares are
qualified for inclusion in many North American regulated accounts.
Central Fund's bullion holdings are stored on an unencumbered, allocated,
segregated and insured basis in the treasury vaults of a major Canadian
bank and are inspected semi-annually in the presence of Central Fund's
auditors and bank representatives. Class A Shares are quoted on the NYSE
Amex, symbol CEF and the TSX, symbols 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

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