Cancana Signs Exclusive Agreement to Purchase 100% of Rio Madeira

Cancana Signs Exclusive Agreement to Purchase 100% of Rio Madeira 
VANCOUVER, CANADA -- (Marketwire) -- 02/08/13 -- Cancana Resources
Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") is pleased to
announce it has entered into an exclusive Memorandum of
Understanding, ("MOU"), to purchase Rio Madeira Comercio Importacao E
Exportacao De Minerios, ("Rio Madeira") in the State of Rondonia,
Brazil.  
The exclusive MOU that has been agreed between Cancana and Rio
Madeira is for the 100% acquisition of the Rio Madeira corporate
entity and all of its associated assets, mineral claims and
operations. It is subject to the successful completion of due
diligence and financing, which expires on April 30, 2013.   
Rio Madeira is a producing Manganese mine operation, producing lump
ore of varying sizes and is located adjacent to, and mainly
contiguous with, Cancana's Manganese claims. Rio Madeira holds title
to 15 mineral claims that total approximately 62,000 hectares in
size. Also included are 3 full mining licenses known as a "Lavra".   
Cancana and Rio Madeira have commenced establishment of due diligence
requirements and these are underway. This will include the review of
all financial and operational aspects of Rio Madeira as well as a geo
technical review of the mineral claims held. Present grades of
Manganese produced are in the 50% plus range according to Rio
Madeira, these are similar to the grades Cancana has reported in the
two recent N.I. 43-101 reports published for its Valdirao project
known as "241NC".  
In the past year Rio Madeira has made substantial improvements to
their production and processing facilities. These include the
streamlining of the initial ore processing, screening, washing and
sorting, as well as the ability to commence the recovery of the
"fines", or granular Manganese ore. In turn this affords Rio Madeira
the ability to access the fertilizer industry as well as the steel
and Ferro Manganese markets.  
Andrew Male, President & CEO of Cancana, commented; "We are very
pleased to have signed an MOU with the owners of Rio Madeira. During
the last 7 days I have visited their production plant in Espigao, and
I am very encouraged by the progress that Rio Madeira has made with
ongoing modifications and upgrades to their processing facilities. As
we are completing the due diligence of Rio Madeira we will then
concurrently begin to seek the acquisition financing required to
complete the purchase. Having maintained a good ongoing relationship
with the partners of Rio Madeira since late 2010, when we originally
tried to establish a partnership with them, has been key in
successfully obtaining this agreement for a 100% acquisition."  
Cancana Resources Corp. is an exploration stage company 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 website:
www.cancanacorp.com. 
Issued on behalf of the Board of Directors of Cancana Resources Corp. 
Andrew Male, CEO and Director  
The information in this news release may contain forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934 and
applicable Canadian securities laws. 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. 
Contacts:
Cancana Resources Corp.
+1 403 269 2065
cancana.ir@cancanacorp.com
www.cancanacorp.com 
CHF Investor Relations
Morgan Tyghe
Account Manager
morgan@chfir.com