Cantex Mine Development Corp. (TSX-V: CD) (OTCQB: CTXDF) is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement. The first tranche of the Offering consisted of 4,839,999 charity flow through units at $0.21 per CFT Unit and 5,731,372 hard units at $0.14 per Unit for total gross proceeds of $1,818,791.87. Each CFT Unit is comprised of one flow through share and one non-flow through warrant.  Each Unit is comprised of one common share and one non-flow through warrant. Each whole warrant issued in connection with the Offering entitles the holder to acquire one common share at a price of $0.21 for a term of three years.

0974052 B.C. Ltd. a company over which Dr. Charles Fipke, the Chairman and a control person of the Company exercises control and direction over, subscribed for 3,571,429 Units for a total subscription price of $500,000. The issuance of the Units to BC Ltd. constitutes a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions. The Company is relying on the exemption from valuation requirements and minority approval pursuant to subsections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, for the Insider participation in the Offering, as the value of the Units subscribed for does not represent more than 25% of the Company’s market capitalization, as determined in accordance with MI 61-101.

In connection with the closing of the first tranche of the Offering, the Company paid an aggregate cash finders’ fee of $36,652 and issued an aggregate of 391,692 non-transferable finders’ warrants to certain arm’s length finders.  Each Finder’s Warrant entitles the holder to purchase one common share at an exercise price of $0.21 per Finder Share for a period of three years from the date of issuance of the Finder’s Warrant.

Proceeds from the Offering will be used to fund qualified critical mineral exploration expenditures on the Company’s North Rackla project in the Yukon and for general operations. The Offering remains subject to the acceptance of the TSX Venture Exchange.

About Cantex

Cantex is focused on its 100% owned 20,000 hectare North Rackla Project located 150 kilometers northeast of the town of Mayo in the Yukon Territory, Canada where high-grade massive sulphide mineralization has been discovered.  Over 60,000 meters of drilling has defined high grade silver-lead-zinc-germanium mineralization over 2.3 kilometers of strike length and 700 meters depth.  The mineralization remains open along strike and to depth.  The Company is led by Dr. Charles Fipke, C.M., the founder of Ekati, Canada’s first diamond mine.

The technical information and results reported here have been reviewed by Mr. Chad Ulansky P.Geol., a Qualified Person under National Instrument 43-101, who is responsible for the technical content of this release.