Canadian Gold Hunter Announces Cdn $4.3 Million Private Placement

Canadian Gold Hunter Announces Cdn $4.3 Million Private Placement

October 20, 2006
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 20, 2006) - Canadian Gold Hunter Corp. (the "Company") (TSX:CGH) is pleased to announce that it has agreed to sell, on a non-brokered, private placement basis, up to 2 million Flow-Through Common Shares at a price of Cdn $1.50 per Flow-Through Share and up to 1 million Common Shares (Non Flow-Through) at a price of Cdn $1.30 per Common Share for total gross proceeds of up to Cdn $4.3 million.

The private placement is subject to regulatory approval. A 4% finders' fee may be payable on a portion of the private placement.

The gross proceeds of the Flow-Through Shares shall be used for the exploration of the Company's Canadian exploration projects. The Company will use its best efforts to ensure that the exploration expenditures qualify for the investment expenditure credits for purposes of the Income Tax Act (Canada). The gross proceeds of the Common Shares (Non Flow-Through) will be used for general working capital purposes.

ON BEHALF OF THE BOARD

Richard J. Bailes, President          Canadian Gold Hunter Corp.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
Website: www.canadiangoldhunter.com

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