January 07, 2013 at 13:48 PM EST
Cancana Exploration Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 7, 2013) - Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") is pleased to provide an update on its exploration activities in Rondonia, Brazil.

Late 2012 Cancana commenced a research program in order to establish an NI 43-101 Report on one of its Manganese bearing claims in Rondonia, Brazil.

This work was commenced on October 5th, 2012 by Qualified Person, John Harper. Approximately 30 days were spent on site and in Brazil reviewing and qualifying all aspects of the proposed exploration program.

The initial focus was on claim number 886241/2011. This is a claim of 5,417.35 hectares. Surface showings and expressions demonstrated an area of Manganese mineralization along with easy access to road systems and accessibility with the farm and land owner.

The exploration and research was completed by a hand pitting program that in many cases had a maximum pit depth of 1 meter. There were a total of 56 pits dug within a 2.97 hectare area of the claim. This specific area of focus was named "241NC".

As reported in a news release dated November 21st, 2012, Cancana filed an NI 43-101 Report that has an Inferred Resource of 8,775 tonnes of mineralization with an average Manganese grade of 54%. Eight samples were collected and brought to Canada for assay. The samples assayed graded between 46.23% to 60.4% Mn with an average grade of 53.7%.

As demonstrated in the NI 43-101 report, further exploration work and research was required to expand the area of mineralization and potentially increase amount of tonnage. Specifically the use of mechanical equipment and the completion of extensive trenching was to be completed in the second phase.

John Harper continued this research work between November 20th and December 18th, 2012 under the direction and management of Cancana. A mechanized trenching and pitting program was performed in the area known as 241NC. With the utilization of a backhoe and excavator the trenching program was able to go to an average depth of 2 to 3 meters. The trenching exposed more horizons of Manganese cobble mineralization within the area of research. The trenching was subject to the topography and retention of vegetation that would not be removed until formal mining operations commenced.

As a result of the ability to extend the trenching to depths greater than 2 meters Cancana encountered very large Manganese boulders to a size that Cancana has not seen before in this region. The Manganese boulders removed from the trenches varied in size up to 1 cubic meter in volume.

Also included in the extraction of the soils was the in-situ Manganese cobbles that were a regular occurrence in the previous pitting program associated with the initial NI 43-101 report published on November 21, 2012. The Manganese mineralization occurred throughout the upper soil horizon. Trenching showed the material extending to the saprolitic granite bedrock, which was easily visible.

All exposed Manganese boulders and larger cobbles have been stockpiled while the existing trenching and pitting has been remediated.

Andrew Male, CEO of Cancana, commented: "The trenching that we managed to accomplish in such a short period of time was impressive. Moreover the exposure of these massive boulders is very exciting. Going forward we will use the knowledge gained from this initial mechanized trenching program to continue to establish the size and scope of the pool of Manganese mineralization."

Cancana is awaiting the results of the second phase of the NI 43-101 Report which will include the quantitative results of the mechanized trenching and pitting program as well as the expansion of the original 2.97 hectare area. It is anticipated that the revised report will be available on or before January 21st, 2013.

Cancana will continue research and exploration as well as bulk sampling commencing January 14th, 2013 with Cancana management and John Harper returning to Brazil. This will include commencement of research on alternate mineral claims and ongoing prospecting programs.

Cancana Resources Corp. 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.

Contact:

Cancana Resources Corp.,

+1 403 269 2065

cancana.ir@cancanacorp.com

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