CLD

CANGOLD LIMITED (TSX VENTURE:CLD) (the "Company") provides an update from the
recent field work program on the Plomo gold project in northern Sonora, Mexico.
Further geological mapping and detailed surface rock sampling was completed to
locate and delineate complex structural zones and associated low grade bulk
tonnage gold mineralization for follow-up drill testing. Several new areas of
gold mineralization were discovered such that the Plomo project now has nine
gold zones associated with low angle faulting within a one and a half by five
kilometre area.


The summer program encompassed several square kilometres and expanded the area
of detailed mapping in the northern portion of the 4,279 hectare claim block.
Initial rock sampling along more than two kilometres of northwest-trending
structures, with associated hematite, jarosite, and quartz alteration, was
successful in discovering four new northwest oriented structures. Of the initial
42 grab samples, seven returned values of greater than 0.2g/t gold with the
highest being 21.2g/t gold.


In the Banco de Oro area, in the central west part of the claim block, a new
northwest, shallow south dipping structure with associated disseminated pyrite,
sericite, tourmaline, copper carbonates, and hematite was mapped. Three grab
samples from the structure assayed 34.3, 1.21, and 0.392g/t gold along 250
metres of strike length.


Geological mapping indicated that the stratigraphic section consists of an older
mafic package of andesite volcanics and associated diorite intrusions, overlain
by a package of felsic volcanics. The mafic package hosts a northeast-elongated
granodiorite intrusion. Structures include northeast oriented extensional faults
and, more importantly, multiple northwesterly oriented shallow south dipping
faults and associated alteration of either 1) hematite, jarosite, and minor
quartz, or 2) K-feldspar, sericite, tourmaline, and hematite. The felsic
volcanics, being more brittle, are a better host to the northwest structures,
alteration, and gold mineralization. This is substantiated in both the Pavorreal
- NW Bonancita and Banco de Oro areas of the project (see map on Company website
at www.cangold.ca).


A two month follow up program has been initiated whereby detailed channel
sampling of altered and mineralized structural zones will commence, along with
further geological and structural mapping in the Banco de Oro area (and south),
and Pavorreal - NW Bonancita area (both to the NW and SE). A review of satellite
imagery indicates further areas of alteration and lineaments requiring
follow-up. Upon completion of this program, the most promising targets will be
evaluated for potential drill-testing in 2013.


In a regional context, gold mineralization at the Plomo Project is believed to
be related to the Mojave-Sonora Megashear ("MSM"). The MSM is a
northwest-trending left-lateral, strike slip fault zone up to five kilometres
wide and extending for hundreds of kilometres through northern Sonora, southern
California and Arizona, and is interpreted to transect the southwest corner of
the Plomo Project area. Many of the gold mines and prospects in Sonora occur
within or are adjacent to the boundary of this regionally extensive structure,
including Mexico's largest gold mine, the Penoles/Newmont La Herradura deposit,
which lies 25 kilometres to the west of Plomo and contains a global resource of
6.7 million ounces gold (Newmont web-site, reserves and resources as of Dec 31,
2011). Other gold mines along the MSM include Noche Buena (new), La Choya, and
El Chanate in the Caborca region of north-western Sonora, and Mesquite and
Picacho in the Yuma area of south-western Arizona and south-eastern California.
The targets at Plomo are low grade, high-tonnage fault-related gold deposits
amenable to open pit mining and heap leaching, similar to the aforementioned
mines. The relationship of gold mineralization to flat-lying structures is
typical of deposits within the MSM.


The Plomo project lies within the Altar desert of north-western Sonora,
approximately 320 kilometres northwest of Hermosillo, Sonora. It is easily
accessible by paved highway and secondary gravel roads. Cangold will earn a 100%
interest in the Plomo Property, subject to a 2% NSR, by making a final cash
payment of $30,000 and issuing 20,000 shares in November 2012.


Robert Brown, P. Eng., Director and VP Exploration for Cangold is the Qualified
Person for the Company. He has reviewed the technical information referenced
above and has approved this news release.


Cangold Limited is a junior exploration company engaged in the exploration and
development of gold projects in Mexico and Canada. The Company owns a 100%
interest in the past-producing Argosy Gold Mine in northwestern Ontario and is
seeking an advanced stage gold project in Latin America that could be brought
forward towards production.


ON BEHALF OF THE BOARD

Robert A. Archer, P. Geo., President & CEO

FOR FURTHER INFORMATION PLEASE CONTACT: 
Cangold Limited
info@cangold.ca
www.cangold.ca


BD Capital
604 685 6465
604 669 0384 (FAX)

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