Canaco Resources Inc.

Canaco Resources Inc.

March 17, 2005 14:40 ET

Canaco Engages Avalon Development Corp. of Fairbanks Alaska


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANACO RESOURCES INC.

NEX BOARD SYMBOL: CAN.H

MARCH 17, 2005 - 14:40 ET

Canaco Engages Avalon Development Corp. of Fairbanks
Alaska

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 17, 2005) - Canaco
Resources Inc. (NEX:CAN.H) is pleased to announce the signing of an
Agreement with Avalon Development Corporation to provide Geological and
Engineering expertise in the planning and execution of the 2005
exploration programs on the company's Hajdukovich and MaComb properties
located in the Alaska Range.

Avalon Development Corporation is a consulting mineral exploration firm
based in Fairbanks, and the firm will be responsible for establishing a
2005 work program on the properties as well as engaging and supervising
the required contractors for the programs. Mr. Curtis J. Freeman,
President of Avalon has studied both properties since 2000 and is very
familiar with the local geology in the area of these claims.

In regard to the Hajdukovich claims Mr. Freemen has stated that "Canaco
has acquired a property with multi-gram gold values at surface which the
geologic model (based upon the Teck/Sumitomo owned Pogo mine) has shown
has the potential for a +5 million ounce gold deposit."

In regard to the MaComb property Mr. Freemen has said that "The presence
of multi-gram gold with anomalous bismuth and arsenic in float samples
on the Macomb prospect may indicate the presence of an as-yet
undiscovered lode source for these samples, most likely in the immediate
drainage basin upstream from the samples." A more detailed description
of previous work and results on both properties can be found in our news
release of February 22, 2005 which can be accessed on our website,
www.canaco.ca.

Mr. Freeman is a U.S. Certified Professional Geologist licensed in the
State of Alaska and is a qualified person under policy NI43-101. Mr.
Freeman is past director of the Alaska Miners Association and serves on
the board of a number of professional organizations including the
University of Alaska Department of Geology Advisory Board and the State
Division of Geological and Geophysical Survey Geologic Mapping Advisory
Board.

Mr. Freeman and his team of professionals have been involved in a number
of gold, platinum group and base metal discoveries in Alaska and other
parts of the world and were instrumental in recognizing and defining the
Tintina Gold Belt of Alaska and the Yukon Territory.

Additional information on the Hajdukovich and MaComb properties, Avalon
Development Corporation and a bio for Mr. Curtis Freeman are available
at www.canaco.ca.

Canaco Resources is an emerging junior gold exploration company
currently under review for Tier II status on the TSX Venture Exchange
and is engaged in the acquisition, exploration and development gold
prospects in the Western Cordillera of North and South America.

The Company relies on litigation protection for "forward-looking"
statements.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Canaco Resources Inc.
    Geoffrey D.G. Peretz
    President & CEO
    (604) 488-0822
    gperetz@canaco.ca
    www.canaco.ca
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the release.