Central Iron Ore Closing Tranche 1 of Capital Rising

Central Iron Ore Ltd is pleased to announce that it has closed Tranche 1 of its previously announced Capital Raising of $1.76 million for gross proceeds of $262,500. Pursuant to agreements entered into between the Company and each of Brooklyn Bay Pty Ltd. ("Brooklyn") and Golden Sword Investments Pty Ltd. ("GSI"), the Company issued 5 million shares at 5.25 cents per share equally to Brooklyn and GSI each with an attached warrant exercisable at 10 cents up to 36 months from the issue.

The Company is also pleased to announce the appointment of Brett James Hodgins and Richard Homsany to the Board of Directors, nominees of GSI and Brooklyn, respectively. The appointment of Mr. Hodgins and Mr. Homsany to the Board is subject to re-election at the Annual General Meeting and TSX.V approval.

Proceeds from the issuance of the securities from Tranche 1 will be used for repayment of liabilities, for general and administrative expenses and to provide the Company with a working capital reserve. The securities issued in Tranche 1 are subject to a four month hold period expiring on February 27, 2011.

Tranche 2 of the capital raising for gross proceeds of $1.5 million to the Company will consist of 25 million shares at 6 cents per share as follows:

1. Brooklyn ? 22.5 million shares
2. GSI ? 2.5 million shares

Each share to be issued under Tranche 2 has an attached one-fifth of one warrant, each whole warrant exercisable at 10 cents up to 36 months from the issue date. Tranche 2 is subject to Brooklyn and GSI conducting satisfactory due diligence by October 29, 2010 and the Company obtaining TSX.V and shareholder approval.