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Cancana Signs Exclusive Agreement to Purchase 100% of Rio Madeira

VANCOUVER, CANADA -- (Marketwire) -- 02/08/13 -- Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") is pleased to announce it has entered into an exclusive Memorandum of Understanding, ("MOU"), to purchase Rio Madeira Comercio Importacao E Exportacao De Minerios, ("Rio Madeira") in the State of Rondonia, Brazil.

The exclusive MOU that has been agreed between Cancana and Rio Madeira is for the 100% acquisition of the Rio Madeira corporate entity and all of its associated assets, mineral claims and operations. It is subject to the successful completion of due diligence and financing, which expires on April 30, 2013.

Rio Madeira is a producing Manganese mine operation, producing lump ore of varying sizes and is located adjacent to, and mainly contiguous with, Cancana's Manganese claims. Rio Madeira holds title to 15 mineral claims that total approximately 62,000 hectares in size. Also included are 3 full mining licenses known as a "Lavra".

Cancana and Rio Madeira have commenced establishment of due diligence requirements and these are underway. This will include the review of all financial and operational aspects of Rio Madeira as well as a geo technical review of the mineral claims held. Present grades of Manganese produced are in the 50% plus range according to Rio Madeira, these are similar to the grades Cancana has reported in the two recent N.I. 43-101 reports published for its Valdirao project known as "241NC".

In the past year Rio Madeira has made substantial improvements to their production and processing facilities. These include the streamlining of the initial ore processing, screening, washing and sorting, as well as the ability to commence the recovery of the "fines", or granular Manganese ore. In turn this affords Rio Madeira the ability to access the fertilizer industry as well as the steel and Ferro Manganese markets.

Andrew Male, President & CEO of Cancana, commented; "We are very pleased to have signed an MOU with the owners of Rio Madeira. During the last 7 days I have visited their production plant in Espigao, and I am very encouraged by the progress that Rio Madeira has made with ongoing modifications and upgrades to their processing facilities. As we are completing the due diligence of Rio Madeira we will then concurrently begin to seek the acquisition financing required to complete the purchase. Having maintained a good ongoing relationship with the partners of Rio Madeira since late 2010, when we originally tried to establish a partnership with them, has been key in successfully obtaining this agreement for a 100% acquisition."

Cancana Resources Corp. is an exploration stage company 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: www.cancanacorp.com.

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

Andrew Male, CEO and 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
www.cancanacorp.com

CHF Investor Relations
Morgan Tyghe
Account Manager
morgan@chfir.com

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