Chieftain Files Final Prospectus for $17.5M Initial Public Offering

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Dec. 18 /CNW/ - Chieftain Metals Inc. ("Chieftain" or the "Company") is pleased to announce that it has been issued a receipt for a final prospectus from the securities regulatory authorities in Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, and Nova Scotia in connection with its initial public offering (the "Offering") of 2,500,000 common shares at a price of $5.00 per common share and 910,000 flow-through common shares at a price of $5.50 per common share for aggregate gross proceeds of $17,505,000 (excluding the exercise, if any, of the over-allotment option).

Chieftain also announces that it has entered into an agency agreement with a syndicate of Agents led by Wellington West Capital Markets Inc. and including Raymond James Ltd. and Haywood Securities Inc. (collectively the "Agents") in connection with the Offering. The Company has granted an over-allotment option to the Agents, exercisable for a period of 30 days from the date of the closing of the Offering, to purchase up to an additional 511,500 common shares at a price of $5.00 per common share to cover over-allotments, if any.

Chieftain has received conditional approval for the listing of its common shares, including those issued under the Offering, on the Toronto Stock Exchange ("TSX") under the symbol "CFB", subject to fulfilling all of the listing requirements of the TSX.

Closing of the Offering is expected to occur on or about December 22, 2010 and is subject to customary closing conditions. A copy of the final prospectus is available on SEDAR (www.sedar.com).

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation of sale would be unlawful. These 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 U.S. state securities laws and may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom. Any public offering of the securities in the United States may only be made by means of a prospectus containing detailed information about the Company and its management as well as financial statements.

About Chieftain Metals Inc.

Chieftain Metals Inc.'s principal business is the acquisition, exploration and development of mineral properties. Since incorporation, the Company's business has focused entirely on the acquisition of the Tulsequah Polymetallic Project, in northwestern British Columbia, Canada. The Tulsequah Project consists of 38 mineral claims and Crown-grants covering approximately 14,220 hectares and covers two previously producing mines. For more information on the Tulsequah Project, please refer to the Company's NI 43-101 compliant technical reports, "Tulsequah Chief Deposit, Tulsequah Chief Property, Northern British Columbia" and "Big Bull Project, Tulsequah Chief Property, Technical Report, Northern British Columbia", each dated as of November 8, 2010 and available under the Company's profile on SEDAR (www.sedar.com).

Forward-Looking Information:

This press release contains "forward-looking statements" within the meaning of Canadian legislation, concerning the business, operations and financial performance and condition of the Corporation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the following factors described in greater detail in the "Risk Factors" section of the Company's final prospectus dated December 16, 2010: financing risks,  exploration and mining risks, uncertainty of mineral resource and mineralization estimates, estimates of deposit size, feasibility studies and production risks, metal prices, environmental requirements, permitting and other regulatory requirements, title matters, First Nation rights and title, industry competition in the acquisition of industrial mineral properties and the recruitment and retention of qualified personnel, currency fluctuations, insurance risk, stage of development and limited operating history, limited property portfolio, infrastructure, dependence on key management, conflicts of interest, current and future potential litigation, offering risks, global financial conditions, potential dilution, dividends, discretion in use of proceeds, Canadian tax treatment of flow-through shares, estimates and assumptions and increased costs and compliance risks.

Forward-looking statements are based on a number of assumptions, including assumptions regarding general market conditions, the availability of financing for proposed transactions and programs on reasonable terms and the availability of outside service providers to deliver services in a satisfactory and timely manner. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect Chieftain; however, these factors and assumptions should be considered carefully. Although management of the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.

For further information:

CHIEFTAIN METALS INC.

Victor Wyprysky
President & CEO

Telephone: [phone] ext 650
Email: [email protected]