Cangold Limited
TSX VENTURE : CLD

Cangold Limited

March 16, 2009 16:34 ET

Cangold Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 16, 2009) - CANGOLD LIMITED (TSX VENTURE:CLD) (the "Company") reports that the Company has closed the non-brokered private placement financing announced on February 17, 2009.

On closing, the Company issued 4,700,000 units at $0.05 per unit for gross proceeds of $235,000. Each unit comprises one common share and one-half of one non-transferable share purchase warrant.

Each full warrant entitles the holder to acquire, upon exercise, one additional common share at $0.10 until March 12, 2010, provided, however, that should the closing price of the Company's shares on the TSX Venture Exchange be at least $0.20 per share for 20 consecutive trading days (at any time at or following the expiry of the four month resale restriction period), the Company may, by notice to the holder (supplemented by a new release of general dissemination) reduce the remaining exercise period applicable to the warrants to not less than 30 calendar days from the date of such notice.

The Company paid cash finders' fees totalling $8,050, and issued 161,000 finders' warrants. The finders' warrants have the same attributes as the warrants above described. All securities issued and issuable under the private placement are subject to a hold period expiring on July 14, 2009.

The financing proceeds will be used for further property acquisition investigations and for general working capital.

ON BEHALF OF THE BOARD

Kaare G. Foy, Executive Chairman

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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