Mr. Andrew Smith reports

CANACO RESOURCES INC. ANNOUNCES $20,020,000 PRIVATE PLACEMENT FINANCING

Canaco Resources Inc. has entered into a financing agreement pursuant to which a syndicate led by TD Securities Inc. and including Canaccord Genuity Corp., Haywood Securities Inc. and Dundee Securities Corp., has offered to purchase, on a bought-deal private placement basis, 14.3 million common shares of the company at a price of $1.40 per share for total gross proceeds of $20.02-million. Canaco has also granted the underwriters an option to purchase up to an additional 3.6 million common shares at closing, which is exercisable by the underwriters at any time up to two business days prior to closing.

The common shares issued with respect to the offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws.

The closing of the offering is expected to occur on or about Aug. 4, 2010, and is subject to receipt of all necessary regulatory approvals including that of the TSX Venture Exchange.

The net proceeds from the offering will be used by Canaco to finance further exploration and development of the company's mineral properties and for general corporate purposes.