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Cancana Announces Private Placement Financing

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/17/13 -- Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") is pleased to announce a non-brokered private placement offering (the "Offering") of up to 7,500,000 units (each, a "Unit") at a price of $0.20 per Unit for aggregate gross proceeds of up to $1,500,000. The purchase price was based on the last closing price of the Common Shares on the TSX Venture Exchange (the "TSXV") before filing of a Price Reservation form with the TSXV on December 31, 2012.

Units shall be comprised of one common share (each, a "Common Share") in the capital of the Company and one Common Share purchase warrant (each, a "Warrant"). Each Warrant shall entitle the holder to purchase one Common Share at an exercise price of $0.25 per Common Share for a period of two years following the date of closing of the Offering. The Offering is expected to close on or before January 31, 2013.

The securities issued pursuant to the Offering will all be subject to a 4 month regulatory hold period commencing from the date of issuance. The Offering remains subject to TSXV acceptance of requisite regulatory filings.

Cancana is an exploration stage company that is transitioning into production 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.

Issued on behalf of the Board of Directors of Cancana Resources Corp.

Mr. Andrew Male, CEO & 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

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