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Cangold Samples Up To 298.0G/T Gold On Plomo Project
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CANGOLD LIMITED (TSX-V: CLD, the "Company") is pleased to announce that
Phase I mapping and sampling on the Plomo property have identified five
zones of gold mineralization within a northeast trending structural
zone that is at least five kilometres long by one kilometre wide. Gold
mineralization is related to quartz veining, with sericite and hematite
alteration, in subsidiary north-south to northwest striking structures
with modest to shallow southwest or northeast dips. The northeast
structure is reflected by a distinct linear valley which in the past
was the focus of dry placer gold exploitation.

>From southwest to northeast the five zones have been named Banco de
Oro, San Perfecto, Pavorreal, San Crecencio, and Bonancita. The gold
mineralization at Banco de Oro is related to brecciated quartz veins
hosted in foliated sericitized rhyolite at the intersection of a low
angle northwest striking fault with a northeast trending strike-slip
fault. Historic, small scale mine workings extend over 70 metres and
of the 36 samples taken to date, the vast majority is anomalous in
gold. Initial rock chip sampling across the low angle fault in this
area returned 298.0g/t Au over 2.35 metres, 15.1g/t Au over 0.65
metres, 14.5g/t Au over 0.80 metres and 11.0g/t Au over 0.60 metres,
while 7 other samples assayed higher than 1.0g/t Au and an additional 7
returned grades above 0.1g/t Au. Copper oxides have also been noted at
Banco de Oro, filling or staining the strike slip faults, with the same
36 samples assaying up to 0.53% copper.

The San Perfecto area hosts structurally related stockwork zones, in
andesite and fine grained diorite, formed by the intersections of
northwest oriented low and high angle fractures and east-northeast
oriented faults. Initial grab and chip sampling returned up to 3.32g/t
Au over 0.80 metres, with 13 of 29 rock samples assaying more than
0.1g/t Au and most are also strongly anomalous in copper. The areal
extent of San Perfecto is still being evaluated but mineralization and
alteration have been noted over one kilometre in a northwest
orientation.

The Pavorreal structure is hosted in fine grained diorite and is
approximately one kilometre long, northwest-trending with a moderate
dip. Sericite, hematite, quartz tourmaline breccias, clays and
brecciated quartz veins can be traced along the structure and are
locally copper stained. In the north portion, preliminary sampling
returned 4.82g/t Au in a grab sample and 2.65g/t over 2.0 metres in a
chip channel sample. To the south, quartz tourmaline breccias are
found to be anomalous in gold, with the only sample to date returning
0.11g/t Au.

At San Crecencio, a northwest oriented zone of quartz veining, with
sericite and hematite alteration, is presently being geologically
mapped and sampled. Initial sampling has returned locally anomalous
results that are being followed up with more detailed investigations.

On the Bonancita zone a grid has been established over a 550 by 550
metre area containing both north-south and northwest trending quartz
vein swarms and associated alteration. A chip sampling program of all
outcropping areas has been initiated. Gold mineralization appears to
be closely related to quartz veining and sheared andesite with
disseminated oxidized pyrite. Initial assay results have returned up
to 2.53g/t Au over 5.0 metres in chip channel samples and up to 7.62g/t
Au in grab samples. Overall, 51% of the 171 samples taken to date on
the Bonancita grid are considered anomalous in gold.

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 5
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 Pe�oles / Newmont La Herradura deposit, which
lies 25 kilometres to the west of Plomo and contains a global resource
of 104,063,824 tonnes averaging 0.84 g/t gold (Pe�oles 2006 Annual
Report). Other gold mines along the MSM include La Choya, and El
Chanate in the Caborca region of northwestern Sonora, and Mesquite and
Picacho in the Yuma area of southwestern Arizona and southeastern
California. The target at Plomo is a low grade, high-tonnage
fault-related gold deposit amenable to open pit mining and heap
leaching, similar to the aforementioned mines.

The identification of gold mineralization spread over a five by one
kilometre area within a complex structural environment is an excellent
indication of the potential of the Plomo Property. The relationship of
gold mineralization to flat-lying structures is typical of deposits
within the MSM. On-going exploration at the Plomo Property includes
1:5000 property scale geological mapping and rock sampling, and
detailed rock sampling within the five known mineralized zones.
Efforts to synthesize the structural controls on alteration and
mineralization are being aided by Dr. Lucas Ochoa of the University of
Sonora in Hermosillo, and Dr. Matt Gray of Resource Geosciences de
Mexico, also based in Hermosillo. A 1,500 metre Phase I drilling
program is being planned for February 2008.

The 4,279 hectare 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 is earning a 100% interest in the
Plomo Property, subject to a 2% NSR.

Robert F. Brown, P. Eng and Vice-President of Exploration for Cangold
and its wholly owned subsidiary, Coboro Minerales de Mexico, S.A. de
C.V., is designated as the Qualified Person for the Plomo Project under
the meaning of NI 43-101 and has reviewed this news release. Samples
were assayed at SGS Labs in Durango. The Company's QA/QC program
includes the regular insertion of blanks, splits, and standards into
the sample shipments.

FURTHER INFORMATION
For further information please visit the Company's website at
www.cangold.ca or contact Brad Aelicks or Don Mosher at telephone 604
685 6465, fax 604 899 4303 or e-mail info@cangold.ca

ON BEHALF OF THE BOARD

"Robert A. Archer"

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

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

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Copyright (c) 2008 CANGOLD LIMITED (CLD) All rights reserved. For
more information visit our website at http://www.cangold.ca/ or send
mailto:info@cangold.ca
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