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Cangold Re-Engages Investor Relations Consultants; Grants Stock Options

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 01/21/14 -- CANGOLD LIMITED (TSX VENTURE: CLD), (the "Company") announces that it has entered into a new consulting agreement (the "Agreement") with San Diego Torrey Hills Capital, Inc. (the "Consultant") on January 20, 2014 for the provision of investor relations services including developing, coordinating, managing and executing a comprehensive corporate finance and investor relations campaign for the Company. The Agreement is for an initial term of 6 months. After the initial 6-month term, the Agreement shall terminate at any time upon 30 days written notice by either party.

San Diego Torrey Hills Capital, Inc. is a consulting services company based in Rancho Santa Fe, California. The Consultant has previously provided investor relations services to CANGOLD and certain principals of the Consultant have previously purchased shares of the Company.

As compensation for the consulting services provided by the Consultant, CANGOLD will pay a monthly fee of US$5,000, commencing 3 months from the signing of the Agreement, and has granted the Consultant an option to purchase a total of 100,000 common shares at $0.10 per share. The options vest as to 25,000 shares on April 21, 2014 and 25,000 shares every 3 months thereafter until January 21, 2015. The options expire January 20, 2017.

The Company also announces that it has granted stock options to directors, senior officers, employees and other consultants to purchase an aggregate of up to 935,000 shares. The options are exercisable at a price of $0.10 per share and expire five years from the date of grant.

CANGOLD announced on Thursday, January 16, 2014 that it had signed a Letter of Intent with Vista Gold for an option to acquire up to a 100% interest in the Guadalupe de los Reyes Project in Sinaloa State, Mexico.

ON BEHALF OF THE BOARD

Robert A. Archer, P. Geo., President & CEO

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