Cancana Shareholders Approve Rio Madeira Joint Venture and Cancana Closes US$5.7 Million Private Placement and Appoints a New Director - Seite 3

As further described in the Circular, US$5.5 million of the gross proceeds raised from the Offerings will be used by Cancana to purchase shares (quotas) of Rio Madeira Comércio Importação e Exportação de Minérios Ltda. ("Rio Madeira") to enable Cancana's participation in the Rio Madeira joint venture as previously disclosed. The balance of the gross proceeds raised from the Offerings will be used by the Company for general working capital.

Andrew Male, President and CEO of Cancana, commented: "We are happy to conclude this next step of the acquisition of Rio Madeira and Joint Venture with Ferrometals. This will conclude a total of in excess of $11.0 million in debt and equity financings since January 2013. The culmination of all these corporate activities allows the next stages of activity to occur. The exploration, research and production of the operations of the joint venture will begin to add corporate value in the near future."

Appointment of Director

As described in the Company's news releases of December 20, 2013 and February 24, 2014, pursuant to the terms of the Company's Revised Binding Term Sheet with Ferrometals and The Sentient Group, as its Rio Madeira future joint venture partner Cancana has granted Ferrometals certain board nomination rights, with such rights to take effect after closing of the Offerings. Cancana is pleased to announce that, effective today, Anthony Julien has been appointed to the Company's board of directors.

Mr. Julien, the CEO of Ferrometals, is developing industrial minerals projects in Brazil and the United States, to provide products to both the agricultural and steel industries. His business career is underpinned by energy and an entrepreneurial spirit refined by the experience of developing and selling various companies in IT, wholesale/distribution and media. He strengthened these capabilities with a move to enterprise level organizations when he sold his mobility software company to Epicor in 2009 and took on the global mobility sales responsibilities. Building on his global sales experience with Epicor, he joined SAP in 2011, focused on providing SAP mobility solutions to major accounts in retail, mining and energy. This experience fostered his interest in resource-based industries and created an opportunity to reconnect with The Sentient Group who funded his early entrepreneurial business success. Ferrometals' first major investment is the formation of Rio Madeira as a joint venture with Cancana to expand existing production and further develop Cancana's manganese-mining claims in Brazil. In addition to being CEO of Ferrometals, Mr. Julien will hold the position of chairman of Rio Madeira and holds the positions of CEO of Oregon Resource Corporation and CEO of Ferrometals Holdings.