Central Fund Enters Underwriting Agreement

The purchase price of U.S.$9.44 per Class A Share is expectedto result in gross proceeds of approximately U.S.$100,064,000.Substantially all the net proceeds of the offering havebeen committed to purchase gold and silver bullion, in keepingwith the investment policies established by the board ofdirectors of CFOC, for settlement at closing of the issue.The additional capital is expected to reduce the annualexpense ratio in favour of the shareholders of CFOC.

Closing is expected to occur on or about September 19, 2007.

CFOC has filed a base shelf prospectus and registrationstatement with the Canadian securities regulatory authoritiesand 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 prospectusincluding any prospectus supplement and the other documentsthe Company has filed with the securities commissions ineach of the provinces and territories of Canada, exceptQuebec, and the SEC for more complete information aboutthe Company and this offering. You may obtain a copy ofthe base shelf prospectus from CIBC World Markets Corp.,Prospectus Department, 425 Lexington Avenue, 5th Floor,New York, New York 10017, by fax at 212-667-6303, or bye-mail at .You may obtain a copy of the base shelf prospectus in Canadafrom CIBC World Markets Inc., 6th Floor, 161 Bay Street,Toronto, Ontario, M5J 2S8, fax 416-594-7242. This pressrelease shall not constitute an offer to sell or the solicitationof an offer to buy nor shall there be any sale of thesesecurities in any state in which such offer, solicitationor sale would be unlawful prior to registration or qualificationunder the securities laws of any such state.

Statements contained in this release that are not historicalfacts are forward-looking statements that involve risksand uncertainties. CFOC's actual results could differ materiallyfrom those expressed or implied by such forward-lookingstatements. Factors that could cause or contribute to suchdifferences include, but are not limited to, those risksdetailed in the company's filings with the Canadian securitiesregulatory authorities and the SEC.

Central Fund of Canada Limited is a refined gold and silverbullion holding company.