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CANGOLD LIMITED (TSX-V: CLD, the “Company”) announces that, further to the News Release dated June 20, 2012, to meet TSX-V Policy requirements, the market price which triggers the accelerated exercise provision has been reduced from $0.30 to $0.26, so that, in the case of all warrants being re-priced, the exercise period will be reduced to 30 calendar days if, for any 10 consecutive trading days during the unexpired term of the warrants (the “Premium Trading Days”), the closing price of the common shares of the Company is at least $0.26. The reduced exercise period of 30 days will begin 7 calendar days after the 10th Premium Trading Day.

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.

FURTHER INFORMATION
For further information, please visit the Company’s website at www.cangold.ca or contact BD Capital at telephone 604 685 6465, fax 604 669 0384 or e-mail [email protected].


ON BEHALF OF THE BOARD

“Kaare G. Foy”

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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