Canadian Orebodies Inc. (TSX VENTURE:CO) (the "Company") announces that in light
of current market conditions, it has decided to delay the spin-out transaction
that was previously announced on April 24, 2012. The Company planned 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
was to enhance shareholder value by, among other things, improving the
recognition and value of its iron ore and lithium/rare metals assets by
separating such assets between two companies. The Company will revisit this
decision when market sentiment improves, or at such other time that it deems
appropriate.


Canadian Orebodies also wishes to announce today that Don McKinnon, has retired
as Chairman of the Board and will not stand for re-election at the Company's
Annual General Meeting on September 6, 2012, opting to retire and focus on his
health. With almost 50 years of experience in mineral exploration, Mr.
McKinnon's retirement is well earned. Mr. McKinnon is renowned for the discovery
of Hemlo, one of Canada's largest and richest gold mining camps, and he is
greatly respected for his research and extensive library. Mr. McKinnon was named
prospector of the year in 1983, received the Order of Canada in 1996, the
Queen's Golden Jubilee Medal in 2002 and the Queen's Diamond Jubilee Medal in
2012. Gordon McKinnon Canadian Orebodies President and CEO stated "As a company,
we would like to thank Mr. McKinnon for his invaluable expertise and guidance
since Canadian Orebodies' inception in 2008. We are honoured to have had someone
of his calibre on our team."


"It has been a pleasure guiding Canadian Orebodies for the past four years and
watching it grow," said Don McKinnon. "I have full confidence that management,
the board and the rest of the team will continue to transform the Belcher
Islands into Canada's next iron ore district."