Cangold Limited
TSX VENTURE : CLD

Cangold Limited

June 20, 2012 18:33 ET

Cangold Extends and Re-Prices Warrants

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2012) - CANGOLD LIMITED (TSX VENTURE:CLD) (the "Company") is amending the terms of 1,838,000 Series P share purchase warrants ("P Warrants") issued on December 21, 2009, 2,596,000 Series Q share purchase warrants ("Q Warrants") issued on July 13, 2011 and 2,404,000 Series R share purchase warrants ("R Warrants") issued on August 25, 2011.

Subject to TSX Venture Exchange ("Exchange") approval, the exercise price of the P Warrants will be changed from $0.50 to $0.20 and the expiry date will remain at December 20, 2012, the exercise price of the Q Warrants and R Warrants will be changed from $0.75 to $0.20 and the expiry date of the Q Warrants and R Warrants will be changed to December 31, 2012. Provided that, in each case, the exercise period will be reduced to 30 calendar days if, for any 10 consecutive trading days during the unexercised term of the warrants (the "Premium Trading Days"), the closing price of the common shares of the Company is at least $0.30. The reduced exercise price of 30 days will begin 7 calendar days after the 10th Premium Trading Day.

Robert Archer, President & CEO, stated, "In light of depressed market conditions, we view this warrant re-pricing and extension as a token of appreciation to our shareholders for their patience and loyalty as we advance the Ixhuatan Project in Mexico towards pre-feasibility."

Cangold Limited is a junior exploration company engaged in the exploration and development of gold projects in Mexico and Canada. The option to acquire a majority stake in the Ixhuatan Project for the development of the Campamento Deposit is in furtherance of the Company's strategy to build a profitable gold producer.

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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