Central Fund Announces Proposed Offering

Central Fund of Canada Limited (TSX:CEF.A)(TSX:CEF.U)(NYSE Amex:CEF) ("Central
Fund") 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 remaining amount of approximately U.S.$394,295,000 of the original
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 prospectus supplement, when filed, 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. When filed, the United States and Canadian
prospectus supplements for the offering may be obtained in the same manner as
the base prospectus.


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. $).

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