Candelaria Mining Corp T.CAN

Canaco Announces All Remaining Drill Results at Ha

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Canaco Resources Inc.

TSX VENTURE : CAN

July 20, 2012 17:00 ET

Canaco Announces All Remaining Drill Results at Handeni

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 20, 2012) -Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco" or the "Company") is pleased to provide all remaining drill results from the Handeni project, including diamond drilling at Magambazi and both diamond and reverse circulation (RC) drilling at regional targets within the Handeni project area.

The diamond drill results, which include 38 new holes and updates to one previously reported hole, were not included in the initial Magambazi mineral resource estimate announced on May 15, 2012, and are not expected to significantly affect the mineral resource estimate. Highlights include:

Hole ID(1)		From (m)	To (m)	Interval (m)	Au (g/t)		Location
MGZD277(2)		249.0	279.0	30.0	4.78		Magambazi Main
	including	249.0	267.0	18.0	7.97
MGZD403		173.70	191.20	17.50	5.21		Western Lodes (top)
	including	187.70	191.20	3.50	12.47
		195.70	198.50	2.80	6.58
MGZD406		238.70	242.00	3.30	3.29		Western Lodes (top)
MGZD420		152.00	156.50	4.50	2.14		Magambazi Main
		179.20	200.00	20.80	2.84
	including	192.50	195.30	2.80	10.17
		203.00	206.10	3.10	15.98
MGZD432		18.70	22.20	3.50	22.05		Magambazi North
		32.00	34.80	2.80	1.49
		63.00	67.20	4.20	2.35
	including	65.80	67.20	1.40	4.73

(1)		Mineralized true thicknesses are 60-100% of stated thicknesses. The calculation of drill intercepts employs a 0.3 gram/tonne cut-off and no cutting grade has been applied to high gold values.
(2)		Updates to a previously reported hole

The RC drill results, which include 137 holes in the areas peripheral to Magambazi, have indicated the potential for near surface gold mineralization at Kwadijava and returned anomalous mineralization from other regional targets. Highlights include:

Hole ID(1)(2)		From (m)	To (m)	Interval (m)	Au (g/t)		Location
MGZC158		12.00	41.00	29.00	1.25		Kwadijava
	including	26.00	39.00	13.00	1.53
MGZC161		12.00	15.00	3.00	8.11		Kwadijava
MGZC245		89.00	90.00	1.00	1.70		MK South
		103.00	109.00	6.00	0.69
MGZC183		10.00	12.00	2.00	3.71		Majiri
MGZC214		16.00	17.00	1.00	2.60		Bahati
MGZC224		145.00	146.00	1.00	3.13		Junction
MGZC257		21.00	22.00	1.00	1.59		Kiajani

(1)		Holes were drilled as water source wells.
(2)		True interval thicknesses of drilled gold intercepts cannot be determined at this time and interval lengths are presented as drill interval lengths.

The data generated by the RC program is being compiled and the results considered as part of the planning process for further exploration work.

Please visit the Company's website at www.canaco.ca for a plan view map and complete updated lists of drill hole intercepts.

Quality Control

The planning, execution and monitoring of Canaco's drilling and quality control programs at the Handeni project are under the supervision of Jeff Heidema, P.Geo., Canaco's Vice President Exploration. Mr. Heidema is a Qualified Person as defined by National Instrument 43-101. Diamond drill samples in this release were prepared and analyzed at the SGS Geochemical Laboratory in Mwanza, Tanzania. Samples are processed by Fire Assay with A.A. finish under the SGS FAA505. Additionally, core samples analyses are conducted at Acme Labs in Vancouver, Canada, and undergo Fire Assay Fusion Gold by ICP-ES and lead collection fire assay-gravimetric finish. Canaco utilizes an industry standard QA/QC protocol with respect to sampling procedures. Blanks and certified reference standards are inserted into the sample stream to monitor laboratory performance, and duplicates of core, rejects, and pulps are also used to monitor laboratory performance and characterize mineralization. Mineralized true thicknesses are 60-100% of stated thicknesses throughout this release.

About Canaco

Canaco is a Vancouver-based mineral exploration company focused on advanced exploration projects in Africa. The Company has $95 million cash and no debt. Canaco's shares trade on the TSX Venture Exchange under the symbol CAN.

On behalf of the Board of Directors:

Andrew Lee Smith, P.Geo., President, CEO and Director