Cancana Shareholders Approve Rio Madeira Joint Venture and Cancana Closes US$5.7 Million Private Placement and Appoints a New Director

TORONTO, ONTARIO--(Marketwired - April 23, 2014) - Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") is pleased to announce that on April 17, 2014 the shareholders of Cancana (the "Shareholders") approved the Rio Madeira Transactions (as defined below), and that on April 23, 2014 Cancana closed non-brokered private placement offerings of Units and Debentures (each as defined below) with Ferrometals BV ("Ferrometals") for aggregate gross proceeds of CDN$1.7 million and US$4.15 million, respectively, and, effective immediately upon closing of the Offerings (as defined below), Anthony Julien, Chief Executive Officer of Ferrometals, was appointed to the board of directors of Cancana.

Shareholder Approval of Rio Madeira Transactions

At Cancana's special meeting of Shareholders held on April 17, 2014 (the "Meeting"), the Shareholders voted overwhelmingly in favour of the ordinary resolution (the "Resolution") approving the Rio Madeira Transactions (as defined in Cancana's management information circular dated March 18, 2014 (the "Circular")) and the creation of Ferrometals, a subsidiary of The Sentient Group, as a "control person" of the Company as such term is defined in the policies of the TSX Venture Exchange (the "TSXV"). Of the 15,750,203 Common Shares voted at the Meeting, approximately 99.9% voted in favour of the foregoing resolution. As further disclosed in the Company's press release dated April 15, 2014, the vote on the special resolution with respect to the transfer of the Company's interest in the mining claims owned by M L B de Nogueira EPP was withdrawn from the business of the Meeting and has been deferred until the Company's annual general meeting scheduled to be held on or about July 17, 2014.

Private Placement Financings

At the Meeting, the Shareholders voted in favour of the Joint Venture Financings (as defined in the Circular) as part of the Rio Madeira Transactions. These financings were previously disclosed by the Company in its December 20, 2013 and February 24, 2014 press releases. Accordingly, on April 23, 2014 the Company completed the Offerings and issued to Ferrometals the following:

1. An aggregate of 8,500,000 units (the "Units") at a price of CDN$0.20 per Unit. Each Unit consists of one (1) common share in the capital of the Company (a "Common Share") and one (1) Common Share purchase warrant (a "Warrant"), for aggregate gross proceeds of CDN$1.7 million (the "Equity Offering"). Each Warrant is exercisable into one (1) Common Share at a price of CDN$0.25 per Common Share and is exercisable for a period of two (2) years from the date hereof; and