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News 2006

CJGC Closes First Tranche of Guardsmen Option

September 29, 2006

Christopher James Gold Corp. (the “Company”) announces that it has made the first tranche payments under its option, announced June 20, 2006, to acquire all of the shares of Guardsmen Resources Inc. (“Guardsmen”).

Guardsmen is a private company that owns a number of highly-prospective properties in the Toodoggone mining district in northern British Columbia, including the high-grade Ranch gold and copper project.  The Company commenced surface exploration at the Ranch project in August and is currently drilling a number of confirmation and step-out holes on the property.

The Guardsmen Option Agreement

Under a binding Letter of Intent dated June 19, 2006, as amended (the “Option Agreement”), the shareholders of Guardsmen granted the Company an option to acquire all of the shares of Guardsman for total consideration comprising an initial cash payment of $300,000, the issuance of 15,000,000 shares of the Company over 54 months, and the expenditure of $3,700,000 on Guardsmen’s projects over three years.

At the initial closing, the Company paid Guardsmen $300,000 and issued 1,500,000 shares to the Guardsmen shareholders.  In turn, the Company received 580 shares of Guardsmen, representing an initial 10% interest in the private company.  The remaining 5,220 issued and outstanding shares of Guardsmen were placed in escrow to be released to the Company upon payment of future tranches of the option exercise price.

In accordance with the Option Agreement, Scott Gifford, President of Guardsmen, has been appointed a director of the Company, and Dr. Max Baker, President of the Company, has been appointed as one of the two directors of Guardsmen.

About Christopher James Gold Corp.

Christopher James Gold Corp. is a Canadian mineral exploration company trading on the TSX Venture Exchange, under the symbol “CJG”.

The Company holds interests in a large portfolio of gold projects in British Columbia, Nevada and Mexico:

  • Most notably, it has the exclusive option to acquire all of the shares of  Guardsmen Resources Inc., a private company that owns a number of highly-prospective properties in the Toodoggone mining district in northern British Columbia, including the high-grade Ranch gold and copper project.
  • In Durango State, Mexico, the Company has an option to acquire up to a 65% interest in Chesapeake Gold Corp.’s Cucaracha Dorada gold project.
  • In Nevada, the Company is currently conducting first-phase exploration under option on the Olympic-Sun and Cedar Mountain gold and silver projects.
  • In southern British Columbia, it owns 100% of the copper and gold rights to the historic Craigmont mine, as well as the Brassie Creek, Big Kidd, and Portage Lake gold properties.

The Company has assembled a strong management team with extensive experience in project generation and development, a proven track record of exploration capital fundraising, and extensive international alliances.

Visit our website at www.christopherjamesgold.com 

Christopher James Gold Corp.
Max Baker, President

FURTHER INFORMATION
Christopher James Gold Corp.
Max Baker, President
John Glanville, Investor Relations
Tel: 604 408 8829
Email: info@christopherjamesgold.com

This news release contains forward-looking statements.  Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein.  Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. Readers are referred to the sections entitled “Risk Factors” in the Company's periodic filings with the British Columbia Securities Commission, which can be viewed at www.SEDAR.com.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.