Central Fund Announces Proposed Offering

TORONTO, ONTARIO, Nov 09 (MARKET WIRE) --
Central Fund of Canada Limited ("Central Fund") (TSX: CEF.A)(TSX:
CEF.U)(NYSE Amex: CEF) of Calgary, Alberta announced today that it plans
to offer Class A Shares of Central Fund to the public in Canada (except
Quebec) and in the United States under its existing U.S.$1,000,000,000
base shelf prospectus dated September 8, 2009 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 amount of U.S.$1,000,000,000 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 this 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 (except Quebec) 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 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 filed in the United States from CIBC World
Markets Corp., 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 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 unencumbered in allocated and
segregated safekeeping in Canada, in the treasury vaults of the Canadian
Imperial Bank of Commerce. The gold and silver bullion is physically
inspected by Ernst & Young LLP in the presence of Central Fund's
Directors and Officers as well as bank officials. Class A Shares are
quoted on the NYSE Amex LLC symbol CEF and on 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
info@centralfund.com
www.centralfund.com

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