2011 Press Releases

Canada Gold Closes Private Placement

Vancouver, British Columbia, Canada – January 30, 2012 - Canada Gold Corporation (TSX-V: CI, Frankfurt: T9NB, OTC-BB: CNGZF) ("Canada Gold" or the "Company") announces that it has closed its non-brokered private placement previously announced in the Company’s news release dated November 23, 2011.


The Company issued 460,000 units (the "Units") at $0.20 per Unit for gross proceeds of $92,000. Each Unit consisting of one common share and one half share purchase warrant (the "Warrants"), each full Warrant entitling the holder to purchase one additional common share of Canada Gold at a price of $0.35, for a period of two years from the date of closing. Finder's fees (8% cash plus 10% 'B' warrants) have been paid in connection with the private placement including cash of $5,080, and 31,750 'B' warrants to qualified parties, exercisable at a price of $0.20 per warrant for a period of two years from the date of closing.


The TSX-Venture Exchange has approved the closing on January 27, 2012.


The proceeds of the private placement will be used to complete the requisite due diligence on the Handeni/Sindeni Project #2 and Project #3, and for general working capital. The Company is continuing to evaluate the Tanzanian projects, and will provide an update as appropriate.


The securities issued under the private placement are subject to a four month hold period from the date of closing. Unless permitted under securities legislation, the holder of the securities cannot trade the securities before April 29, 2012.


For more information, please contact our office.


On behalf of the Board,


Dave McMillan
President & CEO


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the use of proceeds from the offering, (the "Offering") constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain regulatory approval of the Offering and that actual results of the Company's exploration activities will be consistent with those expected by management. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to the Offering and to Canada Gold's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, financing risks, regulatory risk, actual results of the Company's exploration activities being different than those expected by management, and delays in obtaining or inability to obtain required government or other regulatory or shareholder approvals. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Canada Gold does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

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