Cancana Resources Corp.
TSX VENTURE : CNY

Cancana Resources Corp.

April 13, 2012 11:36 ET

Cancana Announces Special Meeting

VICTORIA, BRITISH COLUMBIA--(Marketwire - April 13, 2012) - Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") is pleased to announce a Special Meeting of the Shareholders of the Company.

Further to the Company's press release dated March 20th, 2012, the Board of Directors, (the "Board"), is pleased to announce that the Special Meeting of the shareholders will be held on June 12th, 2012 for the purposes of approving a Plan of Arrangement, (the "POA"), for the spin-off of certain assets into various subsidiary companies.

The Board has also set May 7th, 2012 as the Record Date.

At the Annual General Meeting, ("AGM"), in Victoria, B.C. on March 9th the Company announced that the Board of Directors had chosen to segregate its minerals classes into new and distinct companies by way of a spin-off strategy. The objective here was to separate the Gold and Diamond opportunities from the Manganese opportunities. In turn each of the companies will then become a "pure play" in nature and not have co-mingled mineral classes.

This process will be completed by way of a Plan of Arrangement ("POA") with the creation of a set of subsidiary companies. The first subsidiary will see the spin-off of a gold property in British Columbia known as Dash. Secondarily the diamond and gold assets from Brazil will be transitioned as well.

Cancana will create five spin-off companies in total and will seek qualifying projects for the companies that it does not use internally. Cancana intends to replicate the share structure on a 1 for 1 ratio which means that for every one share of Cancana held, that shareholder will receive one share in each of the five spin off companies. The date for the distribution of shares from the spin-off companies will be determined at a time by the Board of Directors and a corresponding news release will be issued.

The Company has a Private Placement open at this time and investors in the Private Placement will benefit further by way of being able to exercise Share Purchase Warrants that are part of the Unit Placement of $0.50 each. The Share Purchase Warrants are eligible for 2 years and exercisable at $0.75. The Share Purchase Warrants will be extended into the spin-off companies as well. Should anyone be interested in participating in this private placement please contact the Company.

Cancana Resources Corp. is an exploration stage company that is transitioning into production with assets in Brazil and Canada. The Company has been seeking projects that expand its resource base and provide for near term production and revenue. All available resource reports and information on the Company's properties are located on the Company website.

Issued on behalf of the Board of Directors of Cancana Resources Corp.

Dr. William (Bill) Pfaffenberger CEO and Director

The information in this news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this release, words such as "estimate", "expect", "anticipate" and "believe" as well as similar expressions are intended to identify forward-looking statements. Such statements are used to describe management's future plans, objects, and goals for the Company and therefore involve inherent risks and uncertainties. The reader is cautioned that actual results, performance or achievements may be materially different from those implied or expressed in such statements, which speak only as of the date the statements were made. The Company does not update forward-looking statements continually as conditions change. We seek safe harbour.

Neither the TSX Venture Exchange nor its Regulation Service 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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