Mr. Andrew Male reports

CANCANA ANNOUNCES DEFERRAL OF A RESOLUTION FROM UPCOMING SPECIAL SHAREHOLDERS MEETING

Cancana Resources Corp.'s board of directors, after discussions with Ferrometals (as defined herein) and the Sentient Group, has determined to withdraw and defer the shareholder vote on the special resolution with respect to the transfer of the company's interest in MLB (as defined herein) from the business to be voted on at the special meeting of the shareholders of Cancana to be held on April 17, 2014, until the annual general meeting of the shareholders of the company, which will be scheduled to be held on or about July 17, 2014.

As further described in Cancana's management information circular dated March 18, 2014, at the meeting, shareholders of Cancana were to be asked to consider and, if thought fit, approve a special resolution relating to the transfer by the company of 100 per cent of its interest in MLB de Nogueira EPP (referred to as MLB de Nogueira Mineracao Ltda. in the circular) to Rio Madeira Comercio Importacao e Exportacao de Minerios Ltda., in connection with the operation of Rio Madeira as a joint venture between Cancana and Ferrometals BV, which is currently owned by Ferrometals, a special purpose vehicle established by the Sentient Group.

Cancana's board has determined to withdraw resolution No. 2 after extensive discussions with Ferrometals for the company to complete a restructuring of MLB in accordance with Brazilian law. This restructuring will allow Cancana to complete the disposition of the mining claims of MLB into Rio Madeira in the most-tax-efficient manner, whether by way of a share or asset sale. Cancana has a contractual agreement with a Brazilian national pursuant to which Cancana can exercise control and gain beneficial ownership of the MLB mining claims. The MLB mining claims are not currently held through the 100-per-cent ownership of the share capital of a Brazilian subsidiary known as MLB de Nogueira Mineracao as has been previously disclosed by Cancana. As part of the restructuring, it is anticipated that Cancana will be completing the final steps in establishing a Brazilian corporate subsidiary entity pursuant to which the MLB mining claims will be transferred, and this process is estimated to be completed in approximately 90 days.

Andrew Male, chief executive officer of Cancana, commented, "While it would have been ideal to complete the transfer of the mining claims of MLB into Rio Madeira concurrently with closing the financing with Ferrometals, the board of Cancana felt it imperative to defer this aspect of the meeting until Cancana's interests are structured in the most optimal manner."

The withdrawal of this item of business will not affect the validity of the proxy form enclosed with the circular. Shareholders wishing to complete and lodge a proxy in relation to the meeting do not need to indicate their voting instructions on resolution No. 2. Cancana confirms that, at the meeting, the shareholders will be asked to vote on the first resolution set forth in the circular with respect to the approval of the Rio Madeira joint venture, the creation of Ferrometals as a control person of the company and the proposed financings of Cancana by Ferrometals, which is anticipated to close on or before April 22, 2014, subsequent to shareholder approval.

We seek Safe Harbor.