Cancana Closes on Private Placement & Announces Appointment of President

Cancana Closes on Private Placement & Announces Appointment of President 
VICTORIA, BRITISH COLUMBIA -- (Marketwire) -- 01/31/13 -- Cancana
Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") has
closed a non-brokered private placement of Units and is announcing
the appointment of Andrew Male as President of the Company.  
Cancana is pleased to announce that it has closed a non-brokered
private placement offering (the "Offering") for aggregate gross
proceeds of $1,096,180. The Company issued an aggregate of 5,480,900
units (each a "Unit"), at a price of $0.20 per Unit. Each Unit
consists of one common share of the Company ("Common Share") and one
common share purchase warrant (each a "Warrant"). Each Warrant
entitles the holder thereof to acquire one Common Share of the
Company at a price of $0.25 until January 2015.  
In connection with the Offering, the Company paid an aggregate amount
of $55,640 in cash fees to certain eligible arm's length persons and
issued 265,400 non-transferable finder's warrants (the "Finder
Warrants"). Each Finder Warrant is exercisable into a Unit at an
exercise price of $0.25 per Unit for a period of twenty-four (24)
months from the closing of the Offering. The Finder Warrants and the
securities underlying the Finder Warrants issuable upon due exercise
of the Finder Warrants will all be subject to a statutory hold period
expiring four months and one day from the closing of the Offering.  
On October 19, 2012 and November 2, 2012 the Company announced the
closing of a private placement having raised aggregate gross proceeds
in the amount of $932,632.40 through the issuance of an aggregate of
4,663,162 Units. The closing of today's Offering, together with the
October, 2012 private placement, represents aggregate gross proceeds
of $2,028,812.40 to the Company.  
Cancana is also pleased to announce that, in conjunction with the
financing, the Board of Directors of the Company has appointed Andrew
Male, currently the Chief Executive Officer of Cancana, to the office
of President of the Company.  
Andrew Male, President and CEO of Cancana, commented: "I am pleased
to accept appointment to the office of President in addition to my
position as CEO. I would like to thank the Board of Directors for
their confidence in me as we move forward and begin to transition
from exploration to production." Mr. Male further noted that "that
the completion of this private placement in conjunction with our
earlier financing announced in October 2012, signifies, in
management's view, the market's validation of our business strategy
and the future prospects of our operations in Brazil."  
All securities issued pursuant to the Offering, including the Common
Shares and Warrants underlying the Units and the Common Shares
underlying the Warrants are subject to a four (4) month and one (1)
day statutory hold commencing from closing. The Offering is subject
to TSX Venture Exchange acceptance of requisite regulatory filings.
The proceeds raised from the Offering will be used for general
working capital.  
In connection with the Offering, certain directors and officers of
the Company acquired an aggregate of 990,000 Units. The participation
of such directors and officers in the Offering constitutes a related
party transaction pursuant to Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special Transactions ("MI
61-101"). The Company is exempt from the formal valuation and
minority approval requirements of MI 61-101 in reliance on Sections
5.5(a) and (b) and Sections 5.7(a) and (b), respectively, of M1
Cancana is an exploration stage company that is transitioning to
production with assets in Brazil and Canada. The Company has been
seeking projects that expand its resource base and provide for near
term production and revenue. All available resource reports and
information on the Company's properties are located on the Company
Issued on behalf of the Board of Directors of Cancana Resources Corp.
"Andrew Male"  
Andrew Male, President, CEO and Director  
The information in this news release may contain forward-looking
statements within the meaning of applicable Canadian securities laws,
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. When used in this release, words
such as "estimate", "expect", "anticipate" and "believe" as well as
similar expressions are intended to identify forward-looking
statements. Such statements are used to describe management's future
plans, objects, and goals for the Company and therefore involve
inherent risks and uncertainties. The reader is cautioned that actual
results, performance or achievements may be materially different from
those implied or expressed in such statements, which speak only as of
the date the statements were made. The Company does not update
forward-looking statements continually as conditions change. We seek
safe harbour. 
Neither the TSX Venture Exchange nor its Regulation Service Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. 
Cancana Resources Corp.
+1 403 269 2065 
CHF Investor Relations
Morgan Tyghe
Account Manager
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