CGA Mining announces C$17 million private placement of Ordinary Shares



    
    /NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS
    WIRE SERVICES/

    C$ 17M PRIVATE PLACEMENT OF ORDINARY SHARES

    ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE AND TORONTO STOCK
    EXCHANGE
    

    PERTH, Western Australia, May 26 /CNW/ - CGA Mining Limited (TSX Code:
CGA; ASX Code: CGX) ("CGA", "the Company") is pleased to announce that it has
engaged Haywood Securities Inc ("Haywood") to act as agent for a C$17 million
private placement offering of ordinary shares ("the Offering"). The proceeds,
in combination with existing cash reserves, are proposed to be utilised to
supplement working capital during the initial months of production at the
Masbate Gold Mine. The pouring of gold has commenced and the first shipment is
scheduled for delivery to the refiner, Metalor Technologies SA in Switzerland,
later this week.
    The plant is operating well, with the power station now fully
commissioned, together with the crushing, leach and gold recovery circuits.
Currently the operation is running with the SAG mill and one ball mill, and is
achieving near design throughput of 540 wet tonnes per hour. When the second
ball mill is brought on line, the expectation is to exceed design parameters,
with a target throughput of approximately 600 tonnes per hour (or in the order
of 5mtpa). To date, the power draw has been lower than originally anticipated
and grade control drilling has continued to confirm the original reserve
modelling. Commercial production is currently anticipated to be achieved in
June 2009.
    The ordinary shares will be issued at a price of C$1.35 per share (A$1.54
equivalent).
    The Offering is subject to any required regulatory approval and is
expected to close on or about June 12, 2009.

    ABOUT CGA MINING LIMITED

    CGA is listed on the Toronto Stock Exchange and Australian Securities
Exchange. The Masbate Gold Project in the Philippines was successfully
constructed with first gold poured on 12 May 2009. The project which is
currently ramping up to full production has a total indicated resource base of
4.55M ounces, total inferred resource base of 3.22M ounces and a probable
reserve of 3.03M ounces of gold. It is currently forecast to produce over
200,000 ounces per annum.
    The 4Mt per annum plant was constructed by Leighton Contractors Asia
Limited ("Leighton") without one lost time injury. The mining contract for the
project has also been awarded to Leighton, the largest mining contractor in
the world. CGA is completing a scoping study for the expansion of the plant
throughput at Masbate.
    CGA has a disciplined acquisition program focused on acquiring new gold
projects with a substantial initial resource with the capacity to grow
materially and where the development and operational experience of CGA can be
applied to enhance shareholder value.

    NATIONAL INSTRUMENT 43-101 AND JORC COMPLIANCE

    Mr Geoff.G.Jones, F.Aus.I.M.M.CP Mng, CGA's Consulting Engineer, is
acting as the Qualified Person in compliance with NI 43-101 and JORC reporting
requirements with respect to this announcement. He has prepared and or
supervised the preparation of the scientific or technical information in this
announcement and confirms compliance with NI43-101 and JORC requirements.
    Further information relating to the Masbate Project is included in the
technical report entitled Technical Report on the Mineral Resources of the
Masbate Deposit, Masbate Province, Republic of the Philippines for CGA Mining
Limited prepared by Mining Associates Pty Ltd and available on SEDAR at
www.sedar.com, lodged 8 July 2008.
    Andrew James Vigar of Mining Associates Pty Ltd, a qualified person, has
verified the resource statement for the Masbate Project as disclosed in this
announcement, including sampling, analytical and test data underlying the
estimate. Verification of the data included numerous site visits, database
validation of historical drill results and review of sampling and assaying
protocols. The qualified person was satisfied with the verification process.
    A NI 43-101 compliant report has been lodged on www.sedar.com verifying
and supporting the reserve statement made for the Masbate Project. Mr Daniel
Tuffin of Lower Quartile Solution Pty Ltd, a qualified person, has verified
the reserve statement for the Masbate Project as disclosed in this
announcement, including sampling, analytical and test data underlying the
estimate. Verification of the data included database validation of historical
drill results and review of sampling and assaying protocols. The qualified
person was satisfied with the verification process.

    CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

    This announcement includes certain "forward-looking statements" within
the meaning of Canadian securities legislation. All statements, other than
statements of historical fact, included herein including, without limitation,
statements regarding anticipated dates for construction and production, and
other milestones related to the Masbate Gold Project and other projects;
estimates of capital and operating costs, recovery rates, production estimates
and estimated economic return; and CGA's future operating or financial
performance, are forward-looking statements. Information concerning mineral
reserve and resource estimates including statements regarding the conversion
of inferred resources to reserves also may be deemed to be forward-looking
statements in that it reflects a prediction of the mineralization that would
be encountered if a mineral deposit were developed and mined. Forward-looking
statements involve various risks and uncertainties and are based on certain
factors and assumptions. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Important factors that
could cause actual results to differ materially from CGA's expectations
include uncertainties related to fluctuations in gold and other commodity
prices and currency exchange rates; uncertainties relating to interpretation
of drill results and the geology, continuity and grade of mineral deposits;
uncertainty of estimates of capital and operating costs, recovery rates,
production estimates and estimated economic return; the need for cooperation
of government agencies in the development of the Masbate Gold Project; the
need to obtain additional financing to develop the Masbate Gold Project; the
possibility of delay in development programs or in construction projects and
uncertainty of meeting anticipated program milestones for the Masbate Gold
Project; and other risks and uncertainties disclosed under the heading "Risk
Factors" in CGA's Annual Information Form for the year ended 30 June 2008
filed with the Canadian securities regulatory authorities on the SEDAR website
at www.sedar.com.





For further information:

For further information: ENQUIRIES: Australian Contact: President & CEO
- Michael Carrick, Tel: +61 8 9263 4000, Fax: +61 8 9263 4020, Email:
mcarrick@cgamining.com; US Contact: Independent Chairman - Mark Savage, Tel:
(505) 344-2822, Fax: (505) 344-2922, Email: marksavage@comcast.net

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CGA Mining Limited

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