Vancouver, B.C. - January 22, 2007 - Continuum Resources Ltd. (TSX-V: CNU) (the "Company") - Further to our news releases of December 4, 2006 and January 3, 2007, Continuum Resources Ltd. (the "Company") is very pleased to announce that it has closed the second and final tranche of its private placement. The second tranche was for 23,541,000 units, bring the entire private placement to 30,174,000 units at a price of $0.25 per unit for total gross proceeds of $7,543,500. The first tranche was closed on December 21, 2006 as described in our news release of that day.
Each unit consists of one common share and one-half non-transferable share purchase warrant entitling the holder to purchase an additional common share for a period of one year at a price of $0.25 per share. All warrants issued under the placement are subject to an acceleration provision wherein, after all hold periods expire, if the Company's shares trade at or above the weighted average trading price of $0.50 for 20 consecutive trading days, the Company shall give notice via a news release that the warrants will expire 30 days from the date of such notice.
Bolder Investment Partners, Ltd. acted as lead agent in respect of the placement. For its efforts, Bolder was paid a cash commission of $120,000 or 8% of the total gross proceeds and was issued broker's warrants authorizing the purchase of up to 600,000 common shares at $0.25 per share for one year from the date of closing on the same terms as the warrants issued as part of the units under the private placement.
All securities issued with respect to the placement are subject to a four month hold period expiring on May 19, 2007, in accordance with the policies of the TSX Venture Exchange and the provisions of the Securities Act (British Columbia).
The proceeds of the private placement will be used primarily to maintain its 24% position in the San Jose property joint venture, and to drill and further explore the past-producing Natividad Mine in Mexico, and for general working capital.
ON BEHALF OF THE BOARD OF DIRECTORS
CONTINUUM RESOURCES LTD.
"Greig Hutton"
Per: ______________________________
Greig Hutton, President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Continuum Resources Ltd.
Greig Hutton, P.Eng.
President
Tel: (604) 629-0000
Fax: (604) 669-2960
Website: www.continuumresources.com
Renmark Financial Communications Inc.
Christina Lalli: clalli@renmarkfinancial.com
Barry Mire: bmire@renmarkfinancial.com
Tel: (514) 939-3989
Fax: (514) 939-3717
