Central Iron Ore Closes $4,000,000 Private Placement

Central Iron Ore Limited (TSX VENTURE:CIO) - 

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH US NEWSWIRE SERVICES

Central Iron Ore Limited (the "Company") is pleased to announce that further to
its press release dated April 11, 2011 it has closed a brokered private
placement (the "Private Placement") led by PowerOne Capital Markets Limited (the
"Agent"). 


The Private Placement consisted of 20,000,000 units (the "Units") at a price of
$0.20 per Unit for aggregate gross proceeds of $4,000,000 (which included the
exercise in full of the Agent's option to arrange for the purchase and sale of
an additional 5,000,000 Units). Each Unit is comprised of one common share of
the Company (a "Common Share") and one-half of one common share purchase warrant
(a "Warrant"). Each whole Warrant is exercisable for a period of 24 months
following the closing of the Private Placement (the "Closing Date") at an
exercise price of $0.30 per Common Share, provided that if the closing price of
the Common Shares on the TSX Venture Exchange is equal to or greater than $0.75
per Common Share for a period of 20 consecutive trading days at any time after
four months and one day after the Closing Date, the Company may accelerate the
expiry date of the Warrants by giving notice to the holders of Warrants to the
30th day after the date on which such notice is given by the Company. 


The Agent received a cash fee equal to 8% of the gross proceeds raised in
respect of the Private Placement and the Company issued to the Agent broker
warrants exercisable to acquire 2,000,000 Units ("Broker Units") at an exercise
price of $0.20 per Broker Unit at any time on or before the date which is 24
months following the Closing Date.


All securities issued pursuant to the Private Placement are subject to a
four-month hold period expiring on September 14, 2011. 


The net proceeds of the Private Placement will be used for the exploration on
its gold and iron ore projects located in Western Australia and for working
capital purposes.


About Central Iron Ore Limited

The Company is an exploration and development company engaged in the search for
and development of iron ore and gold in Australia.


On behalf of the Board of Directors

CENTRAL IRON ORE LIMITED

Brett Hodgins, President & Chief Executive Officer

For further information, please contact: www.centralironorelimited.com.

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES.


Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking information within the meaning of
Canadian securities laws. Such information includes, without limitation,
information regarding the Company. Although the Company believes that such
information is reasonable, it can give no assurance that such expectations will
prove to be correct. Forward-looking information is typically identified by
words such as: believe, expect, anticipate, intend, estimate, postulate and
similar expressions, or are those, which, by their nature, refer to future
events. The Company cautions investors that any forward-looking information
provided by the Company is not a guarantee of future results or performance, and
that actual results may differ materially from those in forward looking
information as a result of various factors, including, but not limited to, the
state of the financial markets for the Company's equity securities, the state of
the market for iron ore or other minerals that may be produced generally, recent
market volatility, variations in the nature, quality and quantity of any mineral
deposits that may be located, the Company's ability to obtain any necessary
permits, consents or authorizations required for its activities, to raise the
necessary capital or to be fully able to implement its business strategies and
other risks associated with the exploration and development of mineral
properties. The reader is referred to the Company's disclosure documents for a
more complete discussion of such risk factors and their potential effects,
copies of which may be accessed through the Company's page on SEDAR at
www.sedar.com.

Central Iron Ore (TSXV:CIO)
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