Continental Precious Minerals Inc V.CZQ

CZQ closes 16mm financing

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CONTINENTAL PRECIOUS MINERALS CLOSES $16 MILLION PRIVATE PLACEMENT THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES November 28, 2006 – TORONTO, ONT. - Continental Precious Minerals Inc. (TSX-V:CZQ) (the “Company” or “Continental”) is pleased to announce that it has closed its previously announced private placement. Continental has issued a total of 12,307,691 units for gross proceeds of $16 million, each unit consisting of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $1.75 for a period of 24 months from closing. RAB Special Situations (Master) Fund Ltd. (“RAB”), the Company’s single largest shareholder, participated in the private placement. Together with its prior holdings of the Company, RAB now holds 10,300,000 common shares of the Company, representing approximately 25.8% of the issued and outstanding shares. RAB also holds 9,150,000 common share purchase warrants. As announced in earlier press releases, Max Capital Markets Ltd. acted as lead agent and Canaccord Capital Corporation was a member of the syndicate. In connection with the financing, the agents received a cash commission of 8% of the gross proceeds of the private placement and broker warrants for the purchase of that number of units equal to 10% of the total number of units issued in the private placement (excluding the 1,098,846 units that were non-brokered). All of the foregoing securities issued in connection with the financing are subject to a hold period of four months and one day from the date of issuance. This financing remains subject to final approval of the TSX-V. The proceeds obtained from the sale of units will be applied to working capital purposes and to further develop Continental’s uranium project and the acquisition of additional strategic assets in Sweden.