CLD

CANGOLD LIMITED (TSX VENTURE:CLD) (the "Company") announces a non-brokered
private placement of up to 5,000,000 units with each unit comprising one common
share and one half warrant at a price of $0.15 per unit, for gross proceeds of
up to $750,000. Each full warrant will be exercisable for one common share of
the Company at a price of $0.25 for a period of one year from the date of issue
provided, however, that should the closing price of the common shares on the TSX
Venture Exchange be at least $0.33 per share for 10 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 news
release of general dissemination) reduce the remaining exercise period
applicable to the warrants to not less than 30 days from the date of such
notice.


As previously announced, the Company has signed a Letter of Intent whereby
Cangold will be granted an option to acquire from Vista Gold Corp. ("Vista"), up
to a 100% interest (subject to certain underlying royalties) in the mining
rights to the Guadalupe de los Reyes Project in Sinaloa, Mexico. Subject to the
signing of a definitive option agreement between the Company and Vista and
receipt of TSX Venture Exchange approval therefor, the net proceeds of the
placement will be used to make option payments, for initial work on the project,
and for general working capital.


The Guadalupe de los Reyes Project comprises 6,302 hectares, covering a
past-producing district dating back to 1772. A Preliminary Economic Assessment
("PEA") carried out on the project by Tetra Tech for Vista on March 4, 2013
estimated an Indicated resource of 6.8 million tonnes at a grade of 1.73g/t gold
and 28.71g/t silver (380,100 oz gold and 6,315,300 oz silver) as well as an
Inferred resource of 3.2 million tonnes at a grade of 1.49g/t gold and 34.87g/t
silver (155,200 oz gold and 3,639,000 oz silver) at a cut-off grade of 0.50 g Au
per tonne.


Cangold is considering the resource in the PEA to be an historical estimate as
Cangold's qualified person has not done sufficient work to classify the estimate
as a current mineral resource for Cangold, as per National Instrument 43-101
requirements.


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 the
prospective Plomo Gold Project in Sonora State, Mexico.


ON BEHALF OF THE BOARD

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

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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Cangold Limited
Erick Bertsch
604 638 8967
604 608 1768 (FAX)
info@cangold.ca
www.cangold.ca

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