Issue of Equity

2nd Nov 2007 07:01

Centamin Egypt Limited02 November 2007 November 1, 2007 Centamin Egypt Limited (the 'Company') Issue of Equity CENTAMIN EGYPT LIMITED ANNOUNCES C$100,000,000 "BOUGHT DEAL" FINANCING THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN THE UNITED KINGDOM AND CANADAONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICESOR FOR DISSEMINATION IN THE UNITED STATES. Centamin Egypt Limited (TSX:CEE, AIM:CEY, ASX:CNT) is pleased to announce thatit has entered into an agreement with Westwind Partners Inc. as lead underwriteron behalf of a syndicate of underwriters (collectively, the "Underwriters") topurchase, on a bought deal private placement basis, 83,333,334 special warrantsof the Company at a price of C$1.20 per special warrant, for aggregate grossproceeds of C$100,000,001 (the "Offering"). As a result of this raising theCompany is debt free, unhedged and able to aggressively pursue furtherexploration and the underground development of the newly discovered high gradeAmun Deeps. The Underwriters will arrange for purchasers of the special warrants. Eachspecial warrant shall be automatically exercised for no additional considerationto acquire one ordinary share in the capital of the Company, subject toadjustment in certain events, at 5:00pm (Toronto time) on the earliest of (a)the third business day after the date that a receipt is issued by the securitiesregulatory authorities in Canada for a final prospectus qualifying the ordinaryshares to be issued upon the exercise of the special warrants and (b) the datethat is four months and one day following the closing date. The Underwriters will have the option to purchase up to an additional 28,666,666special warrants at the issue price for a period of up to one day prior toclosing for additional gross proceeds of up to C$34,399,999. The aggregategross proceeds of the Offering if the Underwriters' Option is exercised in fullis approximately C$134,400,000. Centamin Egypt Limited plans to use the net proceeds of this financing to fundthe continued development of the Sukari gold project, underground development,other exploration and general corporate purposes. The Underwriters shall receivecompensation comprised of cash and broker warrants upon closing of the Offering. The Offering is scheduled to close on or about November 23, 2007. Closing ofthe Offering, and the Underwriters' obligation to purchase the Special Warrantsis subject to certain conditions including, but not limited to, the receipt ofall necessary approvals including the approval of the Toronto Stock Exchange andapproval by shareholders (at the Company's annual meeting on November 23, 2007)of the issuance of 75,893,863 ordinary shares and 8,794,691 broker warrantsissued in April 2007 which negates the need to obtain prior shareholder approvalfor this financing. The securities to be issued under this Offering will beoffered by way of private placement exemptions in all the provinces of Canadaother than Quebec, offshore including in the United Kingdom pursuant toapplicable exemptions and in the United States on a private placement basispursuant to exemptions from the registration requirements of the United StatesSecurities Act of 1933, as amended. The securities being offered have not, nor will they be registered under theUnited States Securities Act of 1933, as amended, and may not be offered or soldwithin the United States or to, or for the account or benefit of, U.S. personsabsent U.S. registration or an applicable exemption from the U.S. registrationrequirements. This release does not constitute an offer for sale of securitiesin the United States. For more information please contact: Centamin Egypt Limited+ 61 (8) 9316 2640Josef El-Raghywww.centamin.com Ambrian Partners Limited + 44 (0)207 776 6400Richard Brown Pelham Public Relations+ 44 (0) 207 743 6376Candice SgroiMobile: + 44 (0) 7894 462 114 This information is provided by RNS The company news service from the London Stock Exchange

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Centamin PLC