CO

Canadian Orebodies Inc. (TSX VENTURE:CO) ("Canadian Orebodies" or the "Company")
is pleased to announce that its Board of Directors has determined, in principle,
to proceed with a restructuring of its assets by spinning out the non iron ore
assets into a new company to be incorporated ("SpinCo"). The objective of such
restructuring is to enhance shareholder value by, among other things, improving
the recognition and value of its iron ore and lithium and rare metals assets by
separating such assets between two companies (as described below).


Canadian Orebodies' Board believes that:



--  The Company's current capitalization understates the intrinsic value of
    its iron ore and lithium and rare metals assets. 
--  Market participants tend to prefer 'pure play' single commodity focused
    entities for undertaking valuations and market comparisons. 
--  Providing shareholders with a shareholding in a new company that holds
    the lithium and rare metals assets, pro-rata to their shareholding in
    Canadian Orebodies (which will continue to hold the iron ore assets),
    will offer exposure to the potential value to be created from each set
    of assets. 
--  Following the completion of the Arrangement (as defined below), each of
    Canadian Orebodies and SpinCo (as defined below) will be better
    positioned to finance their respective businesses and grow through
    exploration and acquisition. 



"The proposed restructuring of Canadian Orebodies' assets is designed to allow
Canadian Orebodies to become a pure play iron ore company and SpinCo (as defined
below) to focus on the lithium and rare metals projects acquired from Canadian
Orebodies," said Gordon McKinnon, President & CEO of Canadian Orebodies. "This
transaction will enable Canadian Orebodies to focus on the growth of its Haig
Inlet deposit, while still giving our shareholders exposure to discovery stage
opportunities through SpinCo. We believe this pure play structure will allow
each company to be properly valued in the market independently, ultimately
resulting in enhanced shareholder value. We look forward to keeping shareholders
updated on the progress of the Arrangement."


Canadian Orebodies' current principal assets are:



Iron Ore Assets                                                             
                                                                            

--  The Haig Inlet Iron Ore project (10% interest with the option to acquire
    up to 100%) in Nunavut, Canada, with a National Instrument 43-101
    Mineral Resource estimate of 230 million tonnes of Indicated Mineral
    Resources at a grade of 35.17% Fe and a further 289 million tonnes of
    Inferred Mineral Resources at a grade of 35.47% Fe. 
--  The Haig West property (100% interest), consisting of 13 staked claims
    totalling 10,172 hectares on the west side of Flaherty Island,
    approximately 10km west of Haig Inlet. 

                                                                            
Lithium, Rare Metals and Other Assets                                       
                                                                            

--  The Crescent Lake project (comprised of the Zig-Zag property (option to
    earn up to 80% interest), Outer Zig-Zag claims (100% interest), Despard
    property (100%) and Falcon Lake property (100% interest)), in Ontario,
    Canada. 
--  The Hawkins property (100% interest) which was subject to a shallow
    drilling program carried out in the mid-1980s that defined a low-grade
    auriferous felsic horizon. 
--  The Trump property (in which Canadian Orebodies holds an 80% interest
    through a joint venture agreement). 
--  Canadian Orebodies' interest in Noble Mineral Exploration Inc. ("Noble")
    (TSX VENTURE:NOB), consisting of 5,000,000 common shares in the capital
    of Noble and 4,000,000 warrants to acquire common shares in the capital
    of Noble. 



The Arrangement

Canadian Orebodies proposes to complete the reorganization by way of a plan of
arrangement (the "Arrangement"), which will be subject to regulatory,
shareholder and court approval. Pursuant to the Arrangement, as currently
proposed, Canadian Orebodies' lithium and rare metals assets and any related
liabilities (as well as an estimated $400,000 in cash and cash equivalents, and
certain other assets) will be transferred to a holding company that will become
a wholly-owned subsidiary of a new company to be incorporated ("SpinCo"), with
Canadian Orebodies retaining its current interest in its iron ore assets. Under
the Arrangement, holders of Canadian Orebodies common shares will be entitled to
receive new common shares of Canadian Orebodies and common shares of SpinCo in
exchange for the common shares of Canadian Orebodies held by such holders on the
record date of the Arrangement. Upon completion of the Arrangement, Canadian
Orebodies shareholders will continue to hold a 100% indirect interest in the
assets of both Canadian Orebodies and SpinCo, through their separate
shareholdings in each of Canadian Orebodies and SpinCo. It is expected that
neither Canadian Orebodies nor SpinCo will hold shares in the other.


While the proposed Arrangement remains subject to further review and approval by
the Canadian Orebodies Board of Directors, it is anticipated that Canadian
Orebodies will structure the transactions contemplated under the Arrangement on
a tax neutral basis for the Company and its shareholders.


The completion of the Arrangement will be conditional upon, among other matters,
approval by the Ontario Superior Court of Justice, confirmation, in form and
substance satisfactory to Canadian Orebodies, with respect to the tax
consequences of the Arrangement and receipt of all other required regulatory and
third party consents and approvals required in connection with the Arrangement,
including receiving TSX Venture Exchange (the "TSXV") conditional approval of
the listing thereon of the SpinCo common shares to be received by Canadian
Orebodies' shareholders pursuant to the Arrangement.


The Arrangement will also be subject to shareholder approval by at least
two-thirds of the votes cast by shareholders of Canadian Orebodies at a meeting
of shareholders called for such purpose. The Company expects to deliver to
shareholders an information circular, describing the proposed Arrangement in
greater detail, with a view to holding a special meeting of shareholders to
approve the Arrangement and completing the Arrangement in Q3/2012. Further
particulars relating to the Arrangement, including the record and meeting dates
for such shareholders' meeting, will be announced in due course by press
release.


All current directors and the officers of Canadian Orebodies are expected to
remain the same following the completion of the Arrangement. In addition, Gordon
McKinnon has been appointed as the Chief Executive Officer of SpinCo. Certain of
the directors and officers of Canadian Orebodies are expected to serve on the
Board of Directors of SpinCo following the completion of the Arrangement.


About Canadian Orebodies Inc.

Canadian Orebodies is a Canadian-based mineral exploration company with a
portfolio of properties in Nunavut and Ontario. Canadian Orebodies' primary
focus is on advancing and developing its Haig Inlet Iron Ore Project, located on
the Belcher Islands in Nunavut. The Haig Inlet Iron Ore Project is host to an
indicated iron ore resource of 230 million tonnes at 35.17% Fe and an additional
inferred resource of 289 million tonnes at 35.47% Fe. Canadian Orebodies trades
on the TSXV under the symbol "CO".


For more information please visit www.canadianorebodies.com.

Forward-Looking Information

This press release contains certain forward-looking information. All
information, other than information regarding historical fact, that addresses
activities, events or developments that the Company believes, expects or
anticipates will or may occur in the future is forward-looking information.
Forward-looking information contained in this press release includes, but may
not be limited to: the future plans and objectives of Canadian Orebodies,
including the completion of the proposed Arrangement and the terms, timing and
consequences relating thereto; the anticipated management and Board of Directors
of SpinCo; the listing on the TSXV of the SpinCo common shares to be received by
Canadian Orebodies shareholders in connection with the proposed Arrangement; the
ability by Canadian Orebodies to continue to meet the listing requirements of
the TSXV; mineral resource estimates; information relating to the continued
exploration and development of Canadian Orebodies' mineral properties; the
ability of Canadian Orebodies and SpinCo to obtain future financing; and
statements relating to the intention and/or ability of the Company to effect the
Arrangement and related transactions on a tax-neutral basis. The foregoing and
other forward-looking information contained in this press release reflects the
current expectations, assumptions or beliefs of Canadian Orebodies based on
information currently available to Canadian Orebodies. With respect to the
forward-looking information contained in this press release, Canadian Orebodies
has made assumptions regarding, among other things: general business, economic
and mining industry conditions; Canadian Orebodies' mineral resource estimates;
future production at the Company's Haig Inlet iron ore property; the completion
of the Arrangement, including the receipt of all necessary approvals to proceed
therewith; the Company's ongoing exploration and development activities; the
transferability of Orebodies' lithium and rare metals assets, including the
transferability of its interest in any applicable joint venture or other
agreement; and it has also been assumed that no material adverse change in the
price of rare and/or base metals occurs and no significant events occur outside
of Canadian Orebodies' normal course of business.


Such forward-looking information is subject to a number of risks and
uncertainties that may cause actual results or events to differ materially from
current expectations, including: delays in obtaining, or a failure to obtain,
required regulatory approvals (including the approval of the TSXV with respect
to the listing of the SpinCo common shares to be received by Canadian Orebodies'
shareholders as part of the proposed Arrangement); the Company's inability to
complete the proposed Arrangement or to favourably structure the tax
consequences of the Arrangement; risks normally incidental to exploration and
development of mineral properties; uncertainties in the interpretation of
mineral resources estimates; adverse changes in rare and/or base metal prices;
and future unforeseen liabilities and other factors including, but not limited
to, those that will be enumerated in the information circular that the Company
expects to deliver to shareholders, in due course, describing the proposed
Arrangement. A copy of such information circular will subsequently be made
available under the Company's SEDAR profile available at www.sedar.com.


Forward-looking information speaks only as of the date on which it is made and,
except as may be required by applicable law, Canadian Orebodies disclaims any
obligation to update or modify such forward-looking information, either as a
result of new information, future events or for any other reason.

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