Canaco Congratulates Dr. David Groves on Recent Distinction

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 30, 2011) - Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco" or the "Company") is pleased and proud to announce that its Director of Project Development in Tanzania, Dr. David Groves, has been honored with The Society for Geology Applied to Mineral Deposits SGA-Newmont Gold Medal.

The SGA is the European equivalent of the Society of Economic Geologists (SEG). The SGA-Newmont Gold Medal recognizes the career of the awardee involving unusually original work in the mineral deposit sector. This broadly encompasses major contributions to scientific research and/or development of mineral deposits through exploration and discovery. The medal is based on whole-of-career accomplishments, including research and student mentorship, success in exploration or mining, and service to SGA and other organizations. In this case, Dr. Groves has published widely in international journals, mentored and supervised innumerable postgraduate students, and was instrumental in Canaco's discovery and success at its Handeni and Harvest exploration projects in Africa.

Dr. Groves has also been President of SGA, SEG and the Geological Society of Australia.

"Canaco's management and Board of Directors are pleased to join colleagues and peers from around the world in congratulating Dr. Groves on this well-deserved honour," said Andrew Lee Smith, Canaco's President and CEO. "The Penrose and SGA-Newmont medals have been awarded to Dr. Groves in recognition of a career dedicated to excellence in geoscience. His guidance has been fundamental to Canaco's success and the achievements of the Company's technical personnel."

Dr. Groves has also been bestowed the Penrose Gold Medal from SEG (see Canaco's news dated December 15, 2010). The Penrose Gold Medal was established in 1923 to be awarded primarily in recognition of a full career in the performance of unusually original work in the Earth Sciences, which is broadly interpreted to encompass major contributions to the development of mineral resources through mine geology, exploration, and discovery. The medal is the highest honour it can bestow on a geologist.

Dr. Groves will be the first person to be awarded both the SEG Penrose Gold Medal and the SGA-Newmont Gold Medal.

About Canaco

Canaco is a Vancouver-based mineral exploration company focused on advanced exploration in Africa. Built on a foundation of experienced management and focused on rapidly advancing exploration projects in Tanzania, Canaco believes it is well positioned to build shareholder value through discovery and resource development.

Canaco's shares trade on the TSX Venture Exchange under the symbol CAN.

On behalf of the Board of Directors:

Andrew Lee Smith, P.Geo., President, CEO and Director

Cautionary Statement Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast", "project", "budget", "schedule", "may", "will", "could", "might", "should" or variations of such words or similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks associated with mineral exploration and development; metal and mineral prices; availability of capital; accuracy of the Company's projections and estimates; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of current exploration activities; government regulation; political or economic developments; environmental risks; insurance risks; capital expenditures; operating or technical difficulties in connection with development activities; personnel relations; the speculative nature of strategic metal exploration and development including the risks of diminishing quantities of grades of reserves; contests over title to properties; and changes in project parameters as plans continue to be refined, as well as those risk factors set out in the Company's annual information form for the financial year ended June 30, 2010, the Company's short form prospectus dated March 15, 2011 and the Company's management information circular dated May 10, 2011. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the price of gold; the demand for gold; the ability to carry on exploration and development activities; the timely receipt of any required approvals; the ability to obtain qualified personnel, equipment and services in a timely and cost-efficient manner; the ability to operate in a safe, efficient and effective manner; and the regulatory framework regarding environmental matters, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information that is included herein, except in accordance with applicable securities laws.