Canacol Energy Ltd.
TSX VENTURE : CNE
BVC : CNEC

Canacol Energy Ltd.

January 21, 2011 16:41 ET

Canacol Energy Ltd. Announces the Issuance of Shares for Services

CALGARY, ALBERTA--(Marketwire - Jan. 21, 2011) - Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX VENTURE:CNE) is pleased to announce that during the quarter ended December 31, 2010 it issued 67,965 common shares as payment for services to consultants of the Corporation at a deemed price per share ranging from $1.32 to $1.67 which were the weighted average trading prices during the periods in question. These shares were issued pursuant to the terms of consulting agreements and are subject to a four-month hold period from the date of issuance.

Canacol is also pleased to announce that the Corporation has issued 300,000 common shares (the "Deferred Shares") to an employee which shall vest as 33% every six months from November 1, 2010 over a period of 1.5 years. The issue price of the Deferred Shares shall be the closing price of the common shares on vesting dates of the Deferred Shares, which shall be May 1, 2011, November 1, 2011 and May 1, 2012, respectively.

Canacol is a Canadian based international oil and gas corporation with operations in Colombia, Brazil and Guyana. Canacol is publicly traded on TSX Venture Exchange (TSX VENTURE:CNE). The Corporation's public filings may be found at www.sedar.com.

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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