Capital Gold Corporation is pleased to announce that it has mandated Standard Bank London Limited as the exclusive arranger of a project finance facility of up to US$10 million for the development of it's El Chanate open-pit gold mining project in Sonora, Mexico.

In making the announcement today Gifford Dieterle, Chairman of Capital Gold Corp., said the engagement of Standard Bank, a leading Emerging Market Bank providing resource banking expertise, is a key step in bringing the El Chanate project into production. "We are delighted to be working with Standard Bank and look forward to moving the El Chanate project forward," he said.

The basis for the funding and development of the El Chanate open-pit gold mining project is included in the project feasibility study completed by M3 Engineering, Tucson, Arizona. The Executive Summary from the feasibility study is available on the Capital Gold website.

Standard Bank is a participant in international project financing, forfaiting and trade finance and has considerable expertise throughout the world. It trades in precious and base metals and energy, and is especially active in mining finance and advisory services.

A financing commitment is subject to satisfactory completion of due diligence, approval from Standard Bank's credit committee and the execution of definitive documentation.