CANACO RESOURCES (CAN.TSXV)

CANACO RESOURCES HIGHLIGHTS

100% Interest in World-Class Handeni Gold Project – The Handeni Gold District consists of numerous gold discoveries in an area of eastern Tanzania, highlighted by the Magambazi prospect, which currently hosts an active artisanal gold mining operation. Recent gold discoveries in the Handeni region have occurred on a district scale and have defined mineralization with a strike length of over 100 kilometers.

First-Mover Advantage with Massive Land Package in NE Tanzania – Management believes that recent gold discoveries in the Handeni region are evidence of a highly prospective emerging gold district in Tanzania and the company has been successful in establishing a large land position in the district.

Strategic Partnership with SinoTech, Chinese Mining Company – Canaco has developed a partnership with SinoTech (Hong Kong) Corporation Ltd. The parent company of SinoTech is SinoTex Mineral Exploration Co. Ltd., a major Chinese exploration and mine development company, with operations in mainland China and international operations in more than 10 countries worldwide.

Growing Institutional Shareholder Base – Canaco has delivered significant gold price leverage to investors in 2010, with its shares having nearly quintupled year-to-date. This performance has begun to attract a growing set of institutional investors looking to gain exposure to the price of gold.

CANACO RESOURCES RECENT DEVELOPMENTS

Initial Magambazi Resource May 15, 2012 Canaco Resources announced an initial mineral resource estimate for the Magambazi area of its Handeni project in Tanzania, Africa. The emerging gold company noted that the mineral resource estimate was prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves, adopted by CIM Council, as amended.

Additional Drill Results May 9, 2012 Canaco Resources announced the remaining outstanding delineation drill results for the purposes of calculating an initial mineral resource estimate at its Magambazi gold project in Tanzania, Africa. The results include 117 new holes and updates to three previously reported holes.

Strikes Again at Magambazi March 16, 2012 Canaco Resources announced new assay results from diamond drilling at its Magambazi gold project in Tanzania, Africa. The emerging gold company noted that the delineation drilling results complement previously reported results and provide an improved understanding of the mineralization continuity seen at Magambazi to date.

CANACO RESOURCES SHARE PERFORMANCE

CAN.TSXV HAS SURGED

S&P 500Canaco Resources has posted a return of greater than 70x that of the broader market in 2010.

GoldThe Canadian-based gold explorer has displayed significant leverage to the price of gold.

GDXCanaco has vastly outperformed its counterparts in 2010 due to its exciting new gold discovery at its Handeni Gold Project in Tanzania, Africa.

GDXJCanaco’s year-to-date return is more than ten times that of the small- and mid-cap gold stocks ETF.

CAN.TSXV VS BENCHMARKS IN 2010

Premier continues to outperform benchmarks

CANACO RESOURCES IN THE NEWS

LOCATED IN TOP MINING JURISDICTION TANZANIA, AFRICA

KEY UPCOMING CATALYSTS

2012
Initial Resource Estimate Canaco is targeting the end of the first quarter of 2012 for the completion of the initial mineral resource estimate for the Handeni project in Tanzania.

2012 “Most Ambitious Growth Program in Company History” The Company will conduct an aggressive diamond drill program on other priority drill targets on the Magambazi property, with the objective to make a new grass roots discovery in the Handeni region.

2012
Magambazi PEA A preliminary economic assessment for the Magambazi property is scheduled for completion by the end of the third quarter of 2012.