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TORONTO, ONTARIO--(Marketwire - Dec. 21, 2009) - Canadian Orebodies Inc. (TSX VENTURE:CO) (the "Company") is pleased to announce that it has closed on its first tranche of a non-brokered private placement (the "Financing") for aggregate gross proceeds of $400,000 through the sale of 1,000,000 units of securities of the Company (each, a "Unit") at a price of $0.10 per Unit and 2,500,000 "flow-through" units of the Company (each, a "Flow-Through Unit") at a price of $0.12 per Unit.


Each Unit is comprised of one common share of the Company (each, a "Common Share") and one-half of one Common Share purchase warrant of the Company (each such whole Common Share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share for a period of 24 months from the closing of the Financing (the "Closing Date") at an exercise price of $0.20 per Common Share provided, however, that the expiry date of the Warrants may be accelerated, at the option of the Company, if the closing price of the Common Shares on the TSX Venture Exchange or such other exchange, market or trading or quotation facility in Canada exceeds $0.30 for a period of 20 consecutive trading days, commencing any time after the date that is four months and one day after the Closing Date, by giving notice to the holders thereof, in which case the Warrants will expire on the twentieth business day after the date on which such notice is given by the Company.


Each Flow-Through Unit is comprised of one Common Share issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) and one-half of one Warrant.


The Company paid cash finders' fees in the aggregate amount of 8% of the gross proceeds and granted non transferable options (each, a "Finders Option") to purchase an aggregate of up to 350,000 units of the Company (each, a "Finders Unit"). Each Finders Option entitles the holder thereof to purchase one Finders Unit for a period of 24 months from the date of issuance at an exercise price of $0.12. Each Finders Unit will be comprised of one Common Share and one half of one Common Share purchase warrant (each such whole Common Share purchase warrant, a "Finders Unit Warrant"). Each Finders Unit Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of $0.20 per Common Share for a period of 24 months from the Closing Date.


The securities issued by the Company in connection with this offering are subject to a statutory hold period which expires on April 19, 2010.



FOR FURTHER INFORMATION PLEASE CONTACT:

Canadian Orebodies Inc.
Gordon McKinnon
President & CEO
(705) 268-9000


http://www.canadianorebodies.com/">www.canadianorebodies.com



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