Cangold Limited
TSX VENTURE : CLD

Cangold Limited

December 22, 2009 16:23 ET

Cangold Closes Private Placement Oversubscribed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2009) - CANGOLD LIMITED (TSX VENTURE:CLD) (the "Company") reports that the Company has closed the non-brokered private placement financing announced on November 25, 2009. On closing, the Company issued 10,900,000 units at Cdn$0.05 per unit for gross proceeds of Cdn$545,000. Each unit comprises one common share and one non-transferable share purchase warrant.

Each warrant entitles the holder to acquire, upon exercise, one additional common share at Cdn$0.10 for a period of one year, provided, however, that should the closing price of the Company's shares on the TSX Venture Exchange be at least Cdn$0.20 per share for 10 consecutive trading days (at any time at or following the expiry of the four month resale restriction period), the Company may, by notice to the holder (supplemented by a news release of general dissemination) reduce the remaining exercise period applicable to the warrants to not less than 30 days from the date of such notice.

The Company paid cash finders' fees totaling Cdn$10,050, and issued 201,000 finders' warrants. The finders' warrants have the same attributes as the warrants above described. All securities issued and issuable under the private placement are subject to a hold period expiring on April 22, 2010. The financing proceeds will be used for further property acquisition investigations, and for general working capital.

"We are continuing to evaluate advanced stage gold projects with near term production potential in Mexico and elsewhere in Latin America, as a major step forward in the growth of the Company," said Robert Archer, President & CEO. "This financing will ensure that we are sufficiently funded to continue that process in order to find the right project."

ON BEHALF OF THE BOARD

Kaare G. Foy, Executive Chairman

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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