SPA Spanish Mountain Gold Ltd.

Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") is
pleased to announce that it has signed the Share Purchase Agreement, ("SPA"),
with the shareholders of Rio Madeira Comercio Importacao E Exportacao De
Minerios, ("Rio Madeira").


Cancana and Rio Madeira signed the SPA with revisions to the Closing Date of the
acquisition, exhaustive development and procurement of the various Schedules and
Annexes attached to the SPA and on-going due diligence.


Cancana previously announced on June 25, 2013, that 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. The extension to the MOU provided that the
acquisition was to complete by June 24, 2013. Both Rio Madeira and Cancana
realised the progress that had been made between the two companies in an effort
to complete this transaction, and in consultation with Cancana's financiers, and
a revised Closing Date of September 30, 2013 was established.


Pursuant to the terms of the SPA and former MOU, this acquisition is subject to
the successful completion of confirmatory due diligence, financing logistics and
receipt of all applicable regulatory approvals.


The original MOU contemplated an acquisition of 100% of the shares of the
company. Under the terms of the SPA, Cancana will purchase 75% of the shares,
plus one share, initially, and have the option to purchase the balance of the
shares for a two year period from the date of Closing. This will allow Cancana
to utilise less capital initially and be able to potentially exercise the option
for the balance of the shares with profits generated from operations.


Cancana will be adopting substantially all of the employees and contractors as
well as all equipment and infrastructure, including fee simple land package
where the processing facility is centrally located. The Rio Madeira company is
being purchased as a turnkey operation.


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 24 mineral claims that total
approximately 72,500 hectares in size. Rio Madeira is also fully permitted for
unlimited production and sale of Manganese. The combination of the Rio Madeira
claims alongside the 41,351 hectares of Cancana claims, which are mainly
contiguous to Rio Madeira claims, will provide for an area of over 1,100 square
kilometres of Manganese bearing claims.


All Manganese assays sampled on Rio Madeira claims have demonstrated similar
grading to that of the Manganese claims held by Cancana. As reported on January
15, 2013, Cancana completed a National Instrument 43-101 ("NI 43-101") compliant
technical report on claim # 886241/2011 with an average Manganese grade of
53.81%. 


As a result of this turnkey acquisition of Rio Madeira, Cancana will be able to
benefit by the consolidation of operations, equipment and resources. Cancana
announced on July 15, 2013 that it had obtained the Guia De Utiliacao, or Trial
Mining License, ("Guia"), on its 886241/2011 manganese claim. Ore from this
claim may now be extracted and processed at the Rio Madeira facility effecting a
capital expenditures cost savings and operational advantages.


Andrew Male, President & CEO of Cancana, commented; "We are very excited about
the signing of the SPA. This advances Cancana along the way to completing the
acquisition of Rio Madeira. We continue to work with our financiers to ensure
full understanding of all aspects of the SPA and requirements of this
acquisition in order to seek a successful Closing which we are confident of. The
combination of this signing of the SPA and the permitting of the Valdirao claim
yesterday are transformational for Cancana." 


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

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. 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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