Canaco Resources Inc.
TSX VENTURE : CAN

Canaco Resources Inc.

December 02, 2010 09:42 ET

Canaco Announces Significant Development in Property Dispute in Tanzania

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 2, 2010) - Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco") attended a meeting today with the Commissioner for Minerals of The United Republic of Tanzania. The Commissioner has ordered, citing the interest of the orderly development of gold mining in the area, the immediate surrender for cancellation of the 0.07 square kilometre mining licence (ML 413/2010) (converted from PML 0010145) within Canaco's 196 square kilometre Kilindi prospecting license (PL 4871/2007). Once ML 413/2010 is surrendered, the Commissioner has indicated that PML 010145 held by Abdallah Omary Kigoda will be reinstated for small-scale artisanal mining activities only.

The Commissioner has stated that he will "ensure that the Order is implemented in the interest of the Government of the United Republic of Tanzania to develop the Handeni – Kilindi goldfields into large-scale mining investments in the area."

Canaco President and Chief Executive Officer Andrew Lee Smith said: "This is a significant step forward for Canaco and paves the way to move this matter towards a final resolution. We appreciate the continued support of the Commissioner's office in dealing with this challenging issue and we will now turn our focus back to development of this exciting gold project."

A copy of the Commissioner's Order can be found on the company's website (www.canaco.ca) and under the company's profile on SEDAR (www.sedar.com).

Andrew Lee Smith, P.Geo, CEO 

Canaco Resources Inc.

Dr. Jingbin Wang, Chairman

Canaco Resources Inc.

Canaco relies on litigation protection for "forward-looking" statements. This press release contains forward-looking statements that are based on Canaco's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding Canaco's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements, including but not limited to: risks related to Canaco's mineral rights in Tanzania; risks related to the exploration and development of mineral properties; actual results of current exploration activities; current global economic conditions; conclusions of future economic evaluations; changes in project parameters as plans continue to be refined; environmental risks; future prices of gold and other metals; currency fluctuations; possible variations in ore reserves, resources, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; risks related to joint venture operations; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; and those factors discussed in the section entitled "Risk Factors" in Canaco's management's discussion and analysis for the three month period ended September 30, 2010. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Canaco disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

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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