Cavan Ventures Inc. ("Cavan" or the "Company") (TSX VENTURE:CVN) is pleased to
announce that, subject to regulatory approval, it intends to carry out a private
placement (the "Private Placement") of an aggregate of up to 21.5 million
subscription receipts of the Company (each, a "Subscription Receipt"). Each
Subscription Receipt will be automatically converted into one unit of the
Company (each, a "Unit") upon the satisfaction or waiver of certain escrow
release conditions relating to the completion of the Company's previously
announced acquisition of a participating interest in the Crown King Silver
Project in Arizona, including TSX Venture Exchange approval thereof. Each Unit
consists of one common share of the Company and one-half non-transferable common
share purchase warrant of the Company, with each whole warrant entitling the
holder thereof to purchase one common share of the Company for a period of
eighteen months following closing of the Private Placement. The Company expects
to raise gross proceeds of up to $2,775,000 from the sale of the Subscription
Receipts, such proceeds to be held in escrow and repaid, with interest, to
subscribers if the escrow release conditions are not satisfied or waived within
180 days following closing of the Private Placement. The Private Placement is
expected to close on or about July 6, 2011.


In connection with the Private Placement, the Company has engaged Portfolio
Strategies Securities Inc. ("PSSI") to act as agent in connection with the
issuance of up to 16 million Subscription Receipts on a commercially reasonable
best-efforts basis (the "Brokered Subscription Receipts"), provided that PSSI
may, at its option, purchase a portion or all of the Brokered Subscription
Receipts. The Brokered Subscription Receipts will be offered at a subscription
price of $0.125, with a warrant exercise price of $0.18. Further, the Company
has granted PSSI an option (the "Over-Allotment Option") to offer an additional
number of Brokered Subscription Receipts equal to 15 per cent of the number of
Brokered Subscription Receipts sold under the Private Placement, effective upon
receipt of subscriptions for Brokered Subscription Receipts that result in gross
proceeds equal to or exceeding $2,000,000 and exercisable at any time up to 48
hours prior to closing of the Private Placement. If the Over-Allotment Option is
exercised in full, the Company expects to receive additional gross proceeds of
$300,000. As compensation for acting as agent, PSSI will receive a commission
equal to 8 per cent of the gross proceeds from the Brokered Subscription
Receipts sold (including, if applicable, the Over-Allotment Option), and
compensation warrants to purchase a number of common shares equal to 8 per cent
of the Brokered Subscription Receipts sold under the Private Placement
(including, if applicable, the Over-Allotment Option), exercisable for a period
of 24 months from the date of closing of the Private Placement at an exercise
price of $0.18. Notwithstanding and in lieu of the foregoing, PSSI will receive
a commission equal to 3 per cent of the gross proceeds from the Brokered
Subscription Receipts sold to subscribers sourced from a president's list
provided by the Company to PSSI (the "President's List"), and compensation
warrants to purchase a number of common shares equal to 3 per cent of the
Brokered Subscription Receipts sold to subscribers sourced from the President's
List. The Company has also agreed to pay certain of PSSI's expenses in
connection with the Private Placement. PSSI's engagement in connection with the
Private Placement remains subject to its due diligence review to be conducted
prior to the date of closing.


In addition, under the Private Placement, 3 million non-brokered Subscription
Receipts will be offered at a subscription price of $0.125, with a warrant
exercise price of $0.18, and 2.5 million non-brokered flow-through Subscription
Receipts will be offered at a subscription price of $0.16, with a warrant
exercise price of $0.22.


The securities issued under the Private Placement will be subject to a statutory
hold period which will expire four months and one day from the closing date in
accordance with the rules and policies of the TSX Venture Exchange and
applicable Canadian securities laws and such other further restrictions as may
be applicable. The net proceeds of the Private Placement are expected to be used
toward mineral exploration activities, including the exploration and development
of the previously announced Crown King Silver Project in Arizona, which remains
subject to TSX Venture Exchange approval, and for general corporate working
capital.


As a result of the Private Placement, the Company has determined not to proceed
with its private placement previously announced by news release dated May 10,
2011.


About Cavan

Cavan Ventures Inc. is a Vancouver based TSX Venture Exchange-listed junior
mining company with acquisitions in Canada and Arizona, USA. The Company's
vision is to become a globally diversified resource company with strong focuses
in gold, silver, and rare earth elements. Cavan strives to become a mid-tier
producer through the acquisition and development of domestic and international
mining properties.


On behalf of the Board of Directors:

Andrew Mah, President & Director

This news release contains certain forward-looking statements that reflect the
current views and/or expectations of Cavan with respect to its performance,
business and future events. Such statements are subject to a number of risks,
uncertainties and assumptions. Actual results and events may vary significantly.