SPA Spanish Mountain Gold Ltd.

Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") and Rio
Madeira Comercio Importacao E Exportacao De Minerios, ("Rio Madeira") intend to
sign the Share Purchase Agreement, ("SPA"), on or before June 28, 2013. 


As previously announced on April 30, 2013, Cancana and Rio Madeira agreed to an
extension of the exclusive Memorandum of Understanding, ("MOU"), announced on
February 8th, 2013 between Cancana and Rio Madeira for the 100% acquisition of
the Rio Madeira share capital and all of its associated assets, mineral claims
and operations. Pursuant to the terms of the MOU, this acquisition is subject to
the successful completion of due diligence, financing and receipt of all
applicable regulatory approvals, and was to expire on April 30, 2013. However,
on April 29th 2013, both Cancana and Rio Madeira agreed to an extension for the
completion of the acquisition by no later than June 24, 2013. This acquisition
or closing date was subject to the achievement of certain specific milestones to
be met within this time frame, including the negotiation and finalization of the
terms of the definitive purchase agreement in respect of the acquisition by June
17, 2013. 


Cancana and Rio Madeira have completed and satisfied the majority of the
conditions required within the MOU and anticipate that the balance of the
requirements will be met on or before June 28, 2013. Accordingly, the parties
have agreed that under the terms of the proposed SPA that the parties anticipate
will be signed on June 28, 2013, that Cancana will acquire a minimum of 75.1% of
Rio Madeira and anticipate a closing date on or before July 31, 2013. 


Cancana is presently completing negotiations with its financiers in order to
enable the execution of the SPA with Rio Madeira. The SPA with Rio Madeira is
subject to financing and this forms one of the final conditions of the SPA. 


Andrew Male, President & CEO of Cancana, commented; "Cancana has been working
diligently to secure the requisite financing for the acquisition of Rio Madeira
and I am excited to say that we are almost there. Completion of the terms and
conditions of the SPA is critical and a priority in order to establish the
framework for financing to be deployed. We are striving to complete the
negotiations on financing within this week as well as the signing the SPA."


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 

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. 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Cancana Resources Corp.
+1 403 269 2065
cancana.ir@cancanacorp.com
www.cancanacorp.com


CHF Investor Relations
Jeanny So
Director of Operations
jeanny@chfir.com

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