Audited 2006 Financial Result

Canadian General Investments Ld
06 February 2007



NEWS RELEASE TRANSMITTED BY CCN MATTHEWS


FOR: CANADIAN GENERAL INVESTMENTS, LIMITED


TSX SYMBOLS: CGI, CGI.PR.A, CGI.PR.B, CGI.PR.C, CGI.WT

LONDON STOCK EXCHANGE: CGI, CGIW


FEBRUARY 6, 2007


Canadian General Investments Reports Audited 2006 Financial Results


TORONTO, CANADA - Canadian General Investments, Limited (CGI) had a strong
finish to 2006, resulting in a diluted net asset value per share (NAV) return,
with dividends reinvested, of 29.6% for the year and 18.6% for the final
quarter. By comparison, the returns of the benchmark S&P/TSX Composite Total
Return Index (S&P/TSX), for the corresponding year and quarter, were 17.3% and
10.4%, respectively. CGI's market return to common shareholders for the twelve
months to December 31, 2006 was 24.5%


Strong performance was achieved across a broad range of stocks in CGI's
investment portfolio, but overweighting in Materials and an underweighting in
Energy, relative to the Index, as well as the leverage provided by the
preference shares, were major contributors to CGI's outperformance.


At December 31, 2006, net assets were $653,128,000, up 11.0% from the 2005 year
end value of $588,146,000. The corresponding diluted NAVs at December 31, 2006
and December 31, 2005 were $31.33 and $25.37. Aggregate net assets were impacted
by the outflow of $67,052,000 associated with a substantial issuer bid for
warrants of the Company. In total, 2,979,109 warrants were bought in at a price
of $22.35 per warrant.


The primary reason for the issuer bid was to enable the Company to maintain its
beneficial investment corporation status by permitting holders of warrants, who
were 'specified shareholders', to dispose of their warrants by a means other
than having to exercise. As a result of changes to tax legislation implemented
subsequent to the issuance of the warrants, exercise of warrants by the major
shareholder group could have caused CGI to lose its special status, in
particular its ability to pay capital gains dividends. In addition to preserving
the Company's tax status, the issuer bid had the effect of increasing CGI's NAV
and minimizing further dilution to common shareholders.


Growth in assets allowed CGI to increase the leverage provided by preference
shares with the completion of a $75 million public offering of 3,000,000, 3.90%
cumulative, redeemable Class A preference shares, Series 3 in March 2006. Net
tangible assets were approximately 4.1 times the $210 million in preference
shares outstanding at December 31, 2006.


In addition to the payment of four regular quarterly taxable dividends of $0.06
per common share, CGI paid a year-end special capital gains dividend of $1.26
per common share on December 29, 2006. Based on the year-end common share price
of $27.40, total dividend payments during 2006 represented a yield of 5.5%.


As a result of cash dividends paid in excess of net income during 2006, the
exercise price of CGI's outstanding warrants was reduced to $2.62 from $4.12 per
common share effective February 6, 2007 pursuant to the warrant indenture. June
30, 2007 is the final exercise date for the remaining warrants, after which time
they will expire without value.


CGI is a closed-end equity fund, focused on medium- to long-term investments in
primarily Canadian corporations. Its objective is to provide better than average
returns to investors through prudent security selection, timely recognition of
capital gains and appropriate income generating instruments.


FINANCIAL HIGHLIGHTS

(in thousands of dollars, except per share amounts)

                                                        For the Year Ended
                                                    December 31,   December 31,
                                                          2006           2005

Net investment loss                                     (4,718)             -
Net gain on investments                                178,364        147,362
                                                       ---------      ---------
Increase in net assets resulting from operations       173,646        147,362
Increase in net assets resulting from operations          8.44           7.18
per common share - basic
Increase in net assets resulting from operations          8.34           6.43
per common share - diluted



                                                              As at
                                                 December 31,      December 31,
                                                       2006              2005

Net assets                                          653,128           588,146
Net asset value per share - basic                     31.72             28.59
Net asset value per share - diluted                   31.33             25.37


In the United Kingdom, copies of the Company's financial reports will be made
available at the U.K. branch transfer agent, Computershare Investor Services
PLC, P.O. Box 82, The Pavilions, Bridgwater Road, Bristol, BS99 7NH. Phone
0117-305-1075.


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FOR FURTHER INFORMATION PLEASE CONTACT:

Canadian General Investments, Limited

Jonathan A. Morgan

President & CEO

Phone: [phone]

Fax: [phone]

e-mail: [e-mail]

website: www.mmainvestments.com



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