CANAF PROVIDES UGANDA LITIGATION UPDATE
Canafprovides Uganda litigation update
March17, 2011, Vancouver, British Columbia - Canaf Group Inc. (TSXV: CAF) ("Canaf"or the "Company") the Canada-registered mining group, today confirmed thatnegotiations are close to reaching a settlement of its lengthy litigationdispute in Uganda.
In August 2006, Canaf, then known as Uganda GoldMining, announced the termination of any further investment into its KilembeCopper-Cobalt Project in Uganda. Since 2007, the Company has been involved in alegal dispute with Kilembe Mines Limited and in April 2009, successfully won aninjunction preventing the sale and privatisation of the Kilembe Copper-CobaltProject by the Government of Uganda. All legal representation for thelitigation and negotiations has been conducted by a Ugandan advocates practiceon a no-win no-fee agreement with the Company.
The Company has nointention to further invest in the Kilembe Copper-Cobalt Project.
Discussions between the parties are at an advancedstage and Canaf is hopeful that a financial settlement will soon be agreed.However, it is not possible at this stage to give an indication of either thequantum or any likely date by which a settlement will be reached,notwithstanding that Canaf believes that the eventual outcome will be apositive one for its shareholders.
The Company intends to make a further announcementonce final agreement is reached between the parties.
About Canaf
Canaf Group Inc. is a junior mining groupbased in Vancouver, Canada, and with subsidiary offices in the United Kingdom.Canaf owns 100% of Quantum Screening and Crushing (Pty) Ltd., a carbonproducing company based in South Africa.
About Quantum
Quantum Screening and Crushing (Pty) Ltd’s isone of South Africa’s largest producers of calcined anthracite, a product usedas a replacement to coke in the manufacturing process of steel and manganese. Thecompany’s two largest clients are Mittal Steel and BHP Billiton, world leadersin steel and manganese production respectively. Quantum has a plant in Newcastle,KwaZulu Natal, where its two kilns operate around the clock devolatising theraw material anthracite. The majority of Quantum’s feedstock anthracite issupplied by Springlake Colliery, which has reserves in excess of 30 years andis located in the nearby town of Dundee.
Forward-LookingStatements
Certain information regarding Canafcontained herein may constitute forward looking statements. Forward looking statements may includeestimates, plans, expectations, opinions, forecasts, projections, guidance orother statements that are not statements of fact. Although Canaf believes that the expectations reflected insuch forward looking statements are reasonable, it can give no assurance thatsuch expectations will prove to have been correct. These statements are subject to certain risks anduncertainties and may be based on assumptions that could cause actual resultsto differ materially from those anticipated or implied in the forward lookingstatements. Canaf is under no obligation to update or alter any forward lookingstatement. These risks includeoperational, political, currency and geological risks and the ability of Canafto raise or obtain funds for its operations. Canaf's forward-looking statementsare expressly qualified in their entirety by this cautionary statement.
For furtherinformation on Canaf Group, visit www.canafgroup.com or see contacts below.
UK Office:
ChristopherWay
CanafGroup Inc.
Phone:+44 1273 492100
Fax:+44 1273 492175
E: info@canafgroup.com
The TSX Venture Exchangehas not reviewed and does not accept responsibility for the adequacy oraccuracy of this release.