TORONTO, ONTARIO--(Marketwire - Nov. 10, 2009) - Central Fund of Canada 
Limited ("Central Fund") (TSX:CEF.A)(TSX:CEF.U)(NYSE Amex:CEF) of Calgary, 
Alberta announced today that it has entered into an underwriting agreement 
with a syndicate of underwriters (the "Underwriters") led by CIBC, under 
which the Underwriters have agreed to buy and sell to the public, in Canada 
(except Quebec) and in the United States under the multijurisdictional 
disclosure system, 15,500,000 Class A Shares of Central Fund. The 
Underwriters have been granted the right to increase the size of the 
offering (the "Right") by up to an additional 1,475,000 Class A Shares, 
exercisable in whole or in part, at any point prior to 4:00 pm (EST) on 
November 10, 2009. The offering will be made under a prospectus supplement 
to Central Fund's U.S.$1,000,000,000 base shelf prospectus dated September 
8, 2009.

The purchase price of U.S.$13.56 per Class A Share is expected to result in 
gross proceeds of approximately U.S.$210 million. Substantially all the net 
proceeds of the offering have been committed to purchase gold and silver 
bullion for settlement at closing, in keeping with the asset allocation 
policies established by the Board of Directors of Central Fund. Any 
additional capital raised by this offering is expected to assist in 
reducing the annual expense ratio in favour of the Shareholders of Central 
Fund.

Closing is expected to occur on or about November 17, 2009.

Central Fund has filed a base shelf prospectus and registration statement 
with the Canadian securities regulatory authorities (except Quebec) and 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 prospectus and any other documents Central Fund has filed with 
the securities commissions in each of the provinces and territories of 
Canada, except Quebec, and the SEC for more complete information about 
Central Fund and this offering. You may obtain a copy of the base shelf 
prospectus filed in the United States from CIBC World Markets Corp., 425 
Lexington Avenue, 5th Floor, New York, New York 10017, by fax at 
212-667-6303 or by e-mail at useprospectus@us.cibc.com. You may obtain a 
copy of the base shelf prospectus filed in Canada from CIBC, fax 
416-594-7242 or request a copy by telephone at 416-594-7270.

Statements contained in this release that are not historical facts are 
forward-looking statements that involve risks and uncertainties. Central 
Fund's actual results could differ materially from those expressed or 
implied by such forward-looking statements. Factors that could cause or 
contribute to such differences include, but are not limited to, those risks 
detailed in Central Fund's filings with the Canadian securities regulatory 
authorities and the SEC.

Central Fund of Canada Limited (est. 1961) is an exchange-tradeable, 
refined gold and silver bullion holding company. Class A Shares are 
qualified for inclusion in many North American regulated accounts. Central 
Fund's bullion holdings are stored unencumbered in allocated and segregated 
safekeeping in Canada, in the treasury vaults of the Canadian Imperial Bank 
of Commerce. The gold and silver bullion are physically inspected by Ernst 
& Young LLP in the presence of Central Fund's Directors and Officers as 
well as bank officials. Class A Shares are quoted on the NYSE Amex LLC, 
symbol CEF and on the TSX, symbols CEF.A (Cdn. $) and CEF.U (U.S. $).

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FOR FURTHER INFORMATION PLEASE CONTACT:

Central Fund of Canada Limited
J.C. Stefan Spicer
President and CEO
905-648-7878
Email: info@centralfund.com
Website: www.centralfund.com