Canaco Resources Inc.

Canaco Resources Inc.

March 21, 2005 14:21 ET

Canaco Signs Engagement Letter with Leede Financial Markets Inc.


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANACO RESOURCES INC.

NEX BOARD SYMBOL: CAN.H

MARCH 21, 2005 - 14:21 ET

Canaco Signs Engagement Letter with Leede Financial
Markets Inc.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2005) - Canaco
Resources Inc. (NEX:CAN.H)

Geoffrey D.G. Peretz, President of Canaco Resources Inc. (the "Company")
is pleased to announce the execution of a Letter of Engagement with
Leede Financial Markets Inc. ("Leede") whereby Leede has agreed to act
as the agent for a private placement of up to $2,000,000 on a
commercially reasonable efforts basis. This private placement is in
conjunction with the company's non-brokered private placement. The funds
received will be applied toward the Company's operations, exploration,
acquisition and development of gold prospects in the Western Cordillera
of North and South America.

Terms for the private placement include the Company offering for sale up
to 4,000,000 units at a price of $0.50 per unit. Each unit shall be
comprised of one common share and one half of one share purchase
warrant. One share purchase warrant shall entitle the holder to acquire
one common share for $0.75 for a period of 12 months from the date of
closing.

A cash commission equivalent to 7% of the proceeds raised under the
private placement will be payable to Leede upon closing and, in
addition, the Company will grant Leede a non-transferable option to
acquire common shares equivalent to 8% of the total number of units sold
under the private placement at an exercise price of $0.75 per share for
12 months from closing.

Canaco Resources Inc., an emerging junior gold exploration company, is a
NEX board listed company that is currently under review for Tier II
status on the TSX Venture Exchange. Further information on the company
and its projects can be viewed at www.canaco.ca.

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.