Citadel Gold Mines Inc. announces completion of private placement

    Citadel Gold Mines Inc. announces that today it closed its
previously-announced non-brokered private placement (the "Private Placement")
of a combination of common shares and flow-through common shares to Dr.
Bernard Sherman, a principal shareholder and related party to the Company. NEX
Exchange approval of the Private Placement was received on November 1, 2007.
    The Private Placement was for 4,250,000 common shares at a price of $0.08
and for 1,454,545 flow-through common shares at a price of $0.11, for
aggregate proceeds to Citadel of approximately $500,000. Upon completion of
the Private Placement, Dr. Sherman controls, directly and indirectly,
approximately 55% of the Company.
    The common shares issued in connection with the Private Placement are
subject to a hold period expiring March 7, 2008.
    The terms of the Private Placement were negotiated between Dr. Sherman
and a special committee of Citadel's board of directors (the "Special
Committee"), consisting solely of independent directors and formed for the
purpose of considering the Private Placement. In determining the terms of the
Private Placement, the Special Committee received independent advice and a
fairness opinion from Research Capital Corporation in respect of the
    "We are pleased by Dr. Sherman's vote of confidence in the Company and
its future prospects," said John Sadowski, President, Secretary and Treasurer
of Citadel. "The completion of this financing enhances our balance sheet and
allows us to move forward with our exploration and development work on our
joint venture property near Sudbury, Ontario and on other properties of merit
presently being considered. We are very excited about Citadel's prospects and
appreciate our shareholders' ongoing support."

    The NEX Exchange has neither approved nor disapproved of the information
    contained herein. The statements used in this press release may contain
    forward-looking statements that may involve a number of risks and
    uncertainties. Actual events or results could differ materially from the
    Company's forward-looking statements and expectations.

For further information:

For further information: John Sadowski, President, Citadel Gold Mines
Inc., Telephone: (416) 675-8379

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