Mr. Rob McEwen reports

CANADIAN GOLD CORP. CLOSES FIRST TRANCHE FINANCING AND UPSIZES PLACEMENT

Canadian Gold Corp. has closed the first tranche of its private placement offering for gross proceeds totalling $626,753. The company issued: (i) 447,560 flow through shares at a price of 20.5 cents per share for gross proceeds of $91,750; and (ii) 3,821,450 units at a price of 14 cents per unit for gross proceeds of $535,003. Each unit comprised one common share and one share purchase warrant entitling the holder to acquire one additional common share at a price of 21.5 cents for a period of 18 months.

The company initially announced an offering of up to $2,225,000, and now anticipates increasing this amount to up to an aggregate $2.5-million as at the final tranche closing, anticipated to occur late this week.

In connection with this first tranche closing, the company paid $1,680 in finders' fees to eligible finders, and insiders subscribed for 97,560 of the total shares issued in this first tranche closing.

Rob McEwen, the company's largest shareholder, subscribed for $500,003 in units, increasing his position from 60,000,000 shares (37.6 per cent) to 63,571,450 shares (38.8 per cent). After closing the first tranche of the private placement, Canadian Gold Corp. has 163,734,828 shares outstanding. Assuming exercise of the 3,571,450 purchase warrants acquired within the units, Mr. McEwen would hold 67,142,900 shares of Canadian Gold Corp. (40.1 per cent). The units acquired by Mr. McEwen were issued from the company's treasury at a price of 14 cents per unit. Mr. McEwen acquired the units for investment purposes, and will continue to evaluate his investment in the issuer, and will increase or decrease his investment from time to time by future acquisitions or dispositions of securities of the company at his discretion, as circumstances warrant, and according to market conditions and other relevant factors in the future. Mr. McEwen has no immediate future intention to acquire further securities of Canadian Gold, however, provided that he holds not less than a 20-per-cent interest in the company, Mr. McEwen has a right to participate in future financings in order to maintain his pro rata interest, in addition to a right of first refusal as it relates to any offered interests in a royalty or metals streaming financing contemplated by the company, as well as the right to nominate two directors to the board of the company.

A report in this regard will be filed electronically with the securities regulatory authority in each jurisdiction where the Issuer is reporting and will be available for viewing through the Canadian SEDAR+ under the issuer's issuer profile. To obtain a copy of the report, contact Mr. McEwen at 416-258-2155.

Qualified person

The scientific and technical information disclosed in this news release was reviewed and approved by Wesley Whymark, PGeo, consulting geologist for the company, and a qualified person as defined under National Instrument 43-101.

About Canadian Gold Corp.

Canadian Gold is a Toronto-based mineral exploration and development company whose objective is to expand the high-grade gold resource at the past-producing Tartan mine, located in Flin Flon, Man. The company holds a 100-per-cent interest in greenfields exploration properties in Ontario and Quebec adjacent to some of Canada's largest gold mines and development projects, specifically, the Canadian Malartic mine (Quebec), the Hemlo mine (Ontario) and Hammond Reef project (Ontario). The company is 38.8 per cent owned by Mr. McEwen, who was the founder and CEO of Goldcorp and is chairman and CEO of McEwen Mining.

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