2010-10-18 14:01 ET - News Release

Mr. Andrew Lee Smith reports

CANACO RESOURCES INC.: CORPORATE UPDATE

Canaco Resources Inc. has been asked by the TSX Venture Exchange to comment on a news release issued by Sonora Gold & Silver Corp. on October 15, 2010. Sonora's news release indicates that it has an option on a Primary Mining License (PML) that has been converted into a Mining License (ML). Canaco has reviewed the Sonora news release.

Canaco has met with the Commissioner of Mines in Tanzania who has confirmed the validity and status of Canaco's existing Prospecting License (PL) which provides Canaco with exclusive rights to the area of the Magambazi discovery. The Commissioner has also informed Canaco of the existence of competing rights in the form of a 0.075 sq. km. PML within Canaco's 196 sq. km. Kilindi PL which was previously not indicated as being present within Canaco's PL. The PML is located within the area that Canaco has been drilling while outlining the Magambazi gold trend.