Cangold Limited CGLJF

News Release

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CANGOLD LIMITED (TSX-V: CLD, the ' sans-serif";='FONT-SIZE:' 10pt;='mso-fareast-font-family:' font-family:='"Arial' sans-serif"='>News Release - Monday, December 13, 2010
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Back in Canada, Cangold is reviewing the possibility of a renewed exploration effort at its 100% owned Argosy Gold Mine in the Red Lake Mining Division of Ontario. The Argosy Gold Mine closed in 1952 after producing 101,875 ounces of gold from 276,573 tons of ore at an average grade of 0.37oz/t (12.7g/t) gold and was only mined to a depth of 270 metres. Cangold previously drilled 4,200 metres in 17 holes on this high grade system and demonstrated the continuity of the gold zones to depth as well as on several of the near-surface veins. Furthermore, a new gold zone was discovered on the property in the Casummit Creek area.

Historically, the Argosy Mine was the largest gold mine in the Birch Lake Greenstone Belt but in recent months, exploration success by Gold Canyon Resources Inc. at its Springpole Project, just 7 kilometres from the south boundary of the Argosy property, is demonstrating the existence of a much larger gold deposit. This discovery has shed a new light on the potential of the belt. Based upon its past exploration efforts in the Birch Lake area, Cangold is also considering the acquisition of more ground in the belt.

With a more favourable climate for exploration financing, the Company looks forward to a more active year in 2011.

FURTHER INFORMATION
For further information please visit the Company's website at www.cangold.ca or contact B&D Capital at telephone [phone], fax [phone] or e-mail [e-mail]

ON BEHALF OF THE BOARD