Interim Results

CANADIAN GENERAL INVESTMENTS LIMITED 
21 July 1999


TSE SYMBOLS: CGI, CGI.PR.A CGI.WT
LONDON STOCK EXCHANGE: CGLq.L, CGlwsq.L

Canadian General Investments, Limited 
Cdn General Investments Reports Six Month Results

TORONTO, CANADA - A broader increase in the market in the second quarter and
very strong performance by individual stocks in the Corporation's portfolio
resulted in NAV growth of 4.8% over the six months to June 30, 1999. Adding back
cash dividends paid to common shareholders and factoring in net provisions on
taxes, which are recoverable in part on payment of cash dividends, would raise
the net asset growth to 6.3%. This compares more favourably with Canadian equity
mutual funds for which the published average return was 7.6% for the same
period. The TSE 300 Total Return was 8.9% for the first half of 1999.

The very large cap Toronto 35 index continued to dominate with a 15.7% gain at
June 30 but the performance gap between all indices was relatively narrow in
June.

FINANCIAL STATEMENTS

Net assets of $284,476,000 at June 30 rose in the second quarter of this year,
climbing 6.3% since March 31. Basic net asset value per common share was $15.43
compared to $14.73 at year-end. Fully diluted net asset value per common share
at June 30, 1999 was $14.35.

Both total and net investment income continued to improve year-over-year
resulting in $85,000 in net income versus a net loss of $855,000 a year ago.
Total investment income of $3,078,000 for the first six months of 1999 was 18.8%
higher than the $2,592,000 recorded in the corresponding period in 1998. This
was largely attributable to the larger portfolio base as a result of the
$60,000,000 preference share issue in the fall of 1998. Year-to-date total
expenses of $3,803,000 were 9.4% lower than for 1998; however, 1998 results were
impacted by the $2,165,000 interest portion of a litigation payment.
Substantially offsetting this difference were preference share costs of
$1,777,000 in 1999.

Net realized gain on investments over six months to June 30, 1999 was
$5,561,000, compared with a net realized gain of $13,604,000 for the same period
in 1998. The change in unrealized appreciation of investments was also positive
in the most recent six month period with a gain of $9,532,000, versus a decline
of $14,413,000 a year ago.

TOP TEN

Among the top ten portfolio positions two name changes occurred in the second
quarter. Exiting the list was the thinly traded A.L. Van Houtte Ltee., in which
partial profit was taken, and Sobeys Canada Inc. which was sold to realize a
good gain and to reduce the overweighted merchandising group. Shaw
Communications Inc. moved up into the list with strong share price appreciation.
Dia Met Minerals Ltd. also became a new constituent with our additional
purchases recognizing the successful start up of diamond extraction and
marketing. Strength continued in CT Financial Services Inc. and in BCE, Inc.,
joined by the strongly advancing Toronto Dominion Bank. These three holdings
were valued collectively at $30 million versus $26 million at the end of the
first quarter. The reasons are well known - sale of CT is thought to be imminent
while BCE is strengthening with its quoted subsidiary interests, headed by
Nortel. TD has gained mainly on perception of the value of its global discount
operations, TD Waterhouse, which went public in late June.

At the present time we are tending to build bigger individual holdings in our
continuing effort to narrow the gap between the Fund and the benchmark index.

Resource sectors other than gold were clear leaders in the stronger market in
the latest quarter. CGI is well represented in mines, oil and gas stocks.
However, the substantial holding in Euro Nevada Mining has been eliminated
subsequent to quarter end as we expect pressure on the already weak golds sector
to be worsened by gradual disposal of reserves by the UK government.

OUTLOOK

Moderate economic growth at least at the 2% level seems likely to further
support the Canadian market together with firming resource sectors. The current
reliability of the U.S. economy is a big plus for Canada. Our impressive
technology sector should be well served if the computer and telecommunications
related investment sectors maintains their phenomenal strength.

A broad return to favour of the Canadian banking sector would also be useful. We
note that without the TD Bank's +28% contribution this important group would
actually have declined about 11.3%. This suggests that index tracking should not
always be expected to be the winner.

CGI has adopted the new financial statement reporting format recommended in a
Canadian Institute of Chartered Accountants Research Report for investment
funds. Prior year figures have been restated to reflect the new format.

FINANCIAL HIGHLIGHTS

                                          For  the  six  months  ended  June  30
                                          ($000, except per share amounts)

                                              1999           1998

 Total investment income                   $      3,078    $       1,138
 Net investment income (loss)              $         85    $        (855)
 Net investment income (loss) per share    $       0.00    $       (0.05)
 Net asset value per share - basic         $      15.43    $       16.09
 Net asset value per share - fully diluted $      14.35    $       15.00

 Number of common shares outstanding         18,441,872       18,441,872

 Per  share  information reflects the capital gains stock  dividends  paid  in
 June 1998 and December 1998.

 In the United Kingdom, copies of the Corporation's first quarter report will
 be made available at the U.K. Transfer Agent, CIBC Mellon Trust Company,
 Balfour House, 390 High Road, Ilford, Essex, 1G1 1NQ. Phone [phone].

 FOR FURTHER INFORMATION PLEASE CONTACT:  

 Canadian  General  Investments, Limited  
 Michael  A.  Smedley  
 President 
 Phone:  (416)  366-2931  
 Fax:    [phone] 
 e-mail:[e-mail]