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Canaco Discovers New Gold Mineralization at the Handeni Gold Project, Tanzania

Vancouver, British Columbia -- September 3, 2008 -- Canaco Resources Inc. (CAN: TSX-V) recent prospecting, trenching and soil geochemistry has resulted in the discovery of a new area of gold mineralization known as the Majiri Bomba prospect on the Company's 100% owned Handeni Gold Project located in the United Republic of Tanzania.

Recent results have defined a strong soil anomaly at Majili Bomba, over 1.3km strike with a peak value of 765ppb Au (0.77g/t Au). Mapping at the Majili workings on the eastern extent of the anomaly, has defined a 30 degree south dipping shear zone which contains sheeted quartz veining, the subject of bedrock and significant alluvial artisanal workings. The soil geochemical anomaly increases in tenor to the west, with peak values of 443ppb Au and 765ppb Au approximately 600m and 1200m west of the workings. 

Trenching of the anomalous zone on 600m centres has been completed and channel rock chip have been delivered to the SGS laboratory in Mwanza for analysis. Visible gold been described from pan concentrates collected from the easternmost trench associated with a zone of quartz veining over 4m width. The rock chip results will enable better definition of the target to help define drill targets for a reconnaissance drill program to be completed as part of the current exploration drilling program. 

The planning, execution and quality control programs at the Handeni Project are under the supervision of Andrew Lee Smith, P.Geo. and Dr. David Groves, Canaco's Director of Project Development, Tanzania.   Mr. Smith and Dr. Groves are qualified persons as defined by National Instrument 43-101.

Additional information on Canaco, including technical reports and other public documents are available on SEDAR at www.sedar.com or from the Company's website at www.canaco.ca. 

Canaco Resources is an emerging junior exploration company trading on the TSX Venture Exchange. The Company is actively engaged in developing an exploration portfolio that includes gold and diamond assets in Tanzania and the El Oro gold project in Mexico.

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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release. The Company relies on litigation protection for "forward-looking" statements. Forward-Looking Statements: This press release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the obligations of the Company under the Option Agreement and the Company's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due o the inherent uncertainty therein. No independent consultant has rendered an expert opinion on the property.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.