Canada Gold Arranges $120,000 Private Placement

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Canada Gold Arranges $120,000 Private Placement

Vancouver, British Columbia, Canada - February 27, 2013 - Canada Gold Corporation (TSX-V: CI, Frankfurt: T9NB, OTC-BB: CNGZF) ("Canada Gold" or the "Company") announces that it has arranged a non-brokered private placement (the "Private Placement") of 2 million units (the "Unit") at a price of $0.06 per Unit, for gross proceeds of $120,000. Each Unit will consist of one common share and one non-transferable share purchase warrant (the "Warrant"); each full Warrant entitling the holder to purchase one additional common share of the Company at a price of $0.10 for a period of 24 months from the date of closing. Insider participation from Directors or Officers of the Company is intended.

Chad McMillan, President and CEO comments that "while recent moves in gold have been volatile, we continue to believe in the long term outlook for the metal as well as our decision to advance the Northern Arm gold project".

The Private Placement will be subject to regulatory and TSX Venture Exchange approval. Finder's fees may be payable on this transaction. Proceeds from the Private Placement will be used for general working capital.

About Canada Gold

Canada Gold is a Canadian gold exploration and development company focused on the newly optioned Northern Arm Gold project located within the Hemlo Greenstone Belt in north central Ontario, approximately 10 kilometers north of Barrick Gold Corporation's Hemlo deposit. The original Hemlo deposit was discovered in 1981 and the Hemlo Mines have since produced more than 20 million ounces of gold while 250,000 ounces of gold are currently being produced per annum. Strong potential exists for additional discoveries in the Hemlo region, though limited exploration has occurred in the area despite having very similar geology to the Hemlo Mines deposits. The Northern Arm Property straddles approximately 90% of a 40 kilometer long, gold prospective geological trend that has yet to be systematically explored. The Company is currently planning an aggressive 2013 exploration program for the property.

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On behalf of the Board,

"Chad McMillan"

Chad McMillan

President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the possible completion of a non-brokered private placement and the intended use of proceeds from the Offering may constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals to complete the Company's planned private placement and exploration activities and that the Company is able to complete the Offering. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, that the Offering will not complete, actual results of the Company's exploration activities being different than those expected by management, delays in obtaining or failure to obtain required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdown and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.