16:00 EST Wednesday, December 15, 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2010) - Canaco (TSX VENTURE:CAN) is very pleased and proud to announce that its Director of Project Development in Tanzania, Dr. David Groves, has been honoured with the Penrose Gold Medal of the Society of Economic Geologists (SEG). The Penrose Gold Medal was established in 1923 to be awarded primarily in recognition of a full career in the performance of unusually original work in the Earth Sciences, which shall be broadly interpreted to encompass major contributions to the development of mineral resources through mine geology, exploration, and discovery. The medal is the highest honour it can bestow on a geologist.

In his acceptance speech, Dr. Groves, as well as thanking and acknowledging many others, stated; "… when I was introduced to Andrew Lee Smith of Canaco Resources, I was able to team up with my son, Iain, to explore the Magambazi area with Canaco staff. In both 2009 and 2010, we drilled arguably the best greenfields exploration orogenic gold intersections, with a discovery hole #1 of 59m @ 4.3g/t Au and hole #66 of 37m @ 12.5g/tAu. It was a highlight of my career to be involved with Iain in the definition of a significant deposit with a strong academic driver in exploration. I had finally become an economic geologist in the strict sense of the term."

Canaco President and CEO Andrew Smith said: "David's vision and experience has been fundamental to Canaco's success and, on behalf of the Company, the Board of Directors and shareholders I would like to express gratitude to David for his efforts on behalf of Canaco and sincerest congratulations on receiving this honour, so richly deserved."

On behalf of the Board of Directors:

Andrew Lee Smith, P.Geo, President, CEO and Director

FOR FURTHER INFORMATION PLEASE CONTACT:

Nick Watters
Canaco Resources Inc.
Investor Relations
604-488-0822 or 1-866-488-0822
investors@canaco.ca