CB Gold Completes Amalgamation with First Source Resources

CB Gold Inc. has announced the completion of the amalgamation with First Source Resources Inc., the satisfaction of the escrow release conditions and the consequent release of the C$26.65 million aggregate gross proceeds from the private placement of subscription receipts that closed on October 22 and October 27, 2010.

With the closing of the Amalgamation the Subscription Receipts are deemed to be exchanged for common shares and warrants of CB Gold as of October 28. BMO Capital Markets (the "Agent") acted as the sole agent for the Offering and was paid a cash fee (the "Offering Fee") equal to 6.0% of the gross proceeds raised under the Offering from the escrowed proceeds. The net proceeds of the Offering will be used by CB Gold for exploration and development of its Norte de Santander Gold Project, the Vetas Gold Project and for general corporate purposes.

Fabio Capponi, President and CEO of CB Gold, stated: "We are pleased to have successfully completed the Amalgamation with First Source, and have filed the requested documents with the TSX Venture Exchange ("TSX-V") with respect to the final approval of the Amalgamation and listing of the Common Shares of CB Gold on the TSX-V. We would like to thank the management of First Source and our respective advisors for their work and support in completing this transaction."