News Release

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

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

May 17, 2011

Mr. Brett Hodgins reports

Central Iron Ore Ltd., further to its press release dated April 11, 2011, has closed a brokered private placement led by PowerOne Capital Markets Ltd.

The private placement consisted of 20 million units at a price of 20 cents per unit for aggregate gross proceeds of $4-million (which included the exercise in full of the agent’s option to arrange for the purchase and sale of an additional five million Units). Each unit comprises one common share of the company and one-half of one common share purchase warrant. Each whole warrant is exercisable for a period of 24 months following the closing of the private placement at an exercise price of 30 cents per common share, provided that if the closing price of the common shares on the TSX Venture Exchange is equal to or greater than 75 cents 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 per cent of the gross proceeds raised in respect of the private placement, and the company issued to the agent broker warrants exercisable to acquire two million units at an exercise price of 20 cents 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 Sept. 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.

We seek Safe Harbor.