VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 27, 2007) - CLOUDBREAK RESOURCES LTD. (TSX VENTURE:CDB)(PINK SHEETS:CUDBF)(FRANKFURT:C6K) (the "Company") is pleased to announce closing of its 6,000,000 unit private placement announced October 31, 2007. An aggregate of 6,000,000 units at a price of $0.10 per unit for total gross proceeds of $600,000 were issued. Each unit consists of one common share in the capital of the Company and one non-transferable share purchase warrant. Each warrant entitles the holder thereof to purchase one additional common share on or before November 14, 2009 at a purchase price of $0.12 during the first year and at a purchase price of $0.15 during the second year.
The Company did not use an exclusive agent in connection with this financing. Odlum Brown Limited, Jennings Capital Inc., Canaccord Capital Corp., PI Financial Corp. and 2390 McGill Holdings Ltd. were paid an aggregate of $45,000.00 in cash, equal to 10% of the gross proceeds of the units sold by the respective agent. In addition, an aggregate of 425,000 broker warrants were issued to certain of the agents, equal in number up to 10% of the number of units sold by the respective agent. Each broker warrant entitles the holder to purchase one common share in the capital of the Company on or before November 14, 2009 at a purchase price of $0.10 per share.
All securities issued pursuant to the private placement are subject to a hold period until March 16, 2008.
The Company will be using the proceeds of this private placement to develop its 2007 drilling program in the Company's properties, as well as general corporate purposes.
ON BEHALF OF THE BOARD
Blair Naughty, President & Director
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
FOR FURTHER INFORMATION PLEASE CONTACT:
Cloudbreak Resources Ltd.