Mr. Anthony Julien of Ferrometals reports

FERROMETALS ACQUIRES SECURITIES OF CANCANA RESOURCES CORP

In connection with a financing announced by Cancana Resources Corp. on Feb. 25, 2014, Ferrometals BV acquired ownership and control over: (i) 8.5 million units of Cancana and (ii) a convertible secured debenture in a principal aggregate amount of $4.15-million (U.S.) issued by Cancana, on April 23, 2014. Each unit is composed of one common share in the capital of Cancana and one common share purchase warrant of Cancana. Each Cancana warrant entitles the holder thereof to acquire a Cancana share at a price of 25 cents per share. The Cancana warrants are exercisable until April 23, 2016. As such, Ferrometals acquired ownership and control over 8.5 million Cancana shares and 8.5 million Cancana warrants. The debenture matures on April 23, 2017, and bears interest at a rate of 8 per cent per annum. The principal amount of the debenture is convertible into fully paid and non-assessable Cancana shares at a conversion price of 20 cents per share.

Assuming the full exercise of the 8.5 million Cancana warrants, as well as the conversion in full of the principal amount of the debenture, Ferrometals would acquire ownership and control over a maximum of 39,868,575 Cancana shares (including the 8.5 million Cancana shares issued on April 23, 2014, and using the Bank of Canada noon exchange rate on April 21, 2014, as per the terms of the debenture), representing approximately 44.73 per cent of the outstanding Cancana shares, calculated on a partially diluted basis assuming the full exercise of the 8.5 million Cancana warrants only and the full conversion of the principal amount of the debenture only.

Ferrometals has ownership and control over 13,857,656 Cancana shares (representing approximately 23.99 per cent of the outstanding Cancana shares), the right to acquire 13,857,656 Cancana shares through 13,857,656 Cancana warrants, and the debenture.

Assuming the full exercise of the 13,857,656 Cancana warrants, as well as the conversion in full of the principal amount only of the debenture, Ferrometals would acquire ownership and control over a maximum of 50,583,887 Cancana shares (including the 13,857,656 Cancana shares over which Ferrometals currently has ownership and control and using the Bank of Canada noon exchange rate on April 21, 2014, as per the terms of the debenture). These combined holdings would represent approximately 53.54 per cent of the outstanding Cancana shares, calculated on a partially diluted basis assuming the full exercise of the 13,857,656 Cancana warrants only and the full conversion of the principal amount of the debenture only.

Ferrometals acquired the 8.5 million units and the debenture for investment purposes only and not with a view to materially affecting control of Cancana.