Canada Gold Announces $500,000 Non-Brokered Private Placement

(via Thenewswire.ca)

Vancouver, British Columbia, Canada - December 10, 2012 - Canada Gold Corporation (TSX-V: CI, Frankfurt: T9NB, OTC-BB: CNGZF) ("Canada Gold" or the "Company") announces a non-brokered private placement (the "Private Placement") of up to 5 million units (the "Units") at a price of $0.10 per Unit, for gross proceeds of up to $500,000. Each Unit consisting of one share and one non-transferable share purchase warrant (the "Warrants"); each full Warrant entitling the holder to purchase one additional common share of the Company at a price of $0.20 for a period of 24 months from the date of closing. Proceeds from the Private Placement will be used to source prospective acquisitions and for general working capital.

Chad McMillan, President & CEO, comments that "this is the right time to position the Company in an aggressive stance for 2013. Canada Gold has an excellent share structure and loyal shareholder base and while we continue to evaluate the best path forward for our Tanzanian assets, current market conditions are increasingly revealing promising new opportunities that the Company must be ready to move on as soon as they emerge."

This Private Placement will be subject to regulatory and TSX Venture Exchange approval. Finder's fees may be payable on this transaction.

For more information, please call 604.685.5851 or visit www.canadagold.com.

On behalf of the Board,

"Chad McMillan"

Chad McMillan

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.

Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the possible completion of a brokered private placement and the intended use of proceeds from the Offering may constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals to complete the Company's planned private placement and exploration activities and that the Company is able to complete the Offering. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, that the Offering will not complete, actual results of the Company's exploration activities being different than those expected by management, delays in obtaining or failure to obtain required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdown and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

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