Capital Gold Corp.

Capital Gold Corporation is a profitable producing gold mining company. Capital Gold owns and operates the El Chanate open pit gold mine in Sonora, Mexico, which is currently producing at an annualized rate of over 60,000 ounces. The company achieved profitability within six months of operation and is today, one of the lowest cost gold producers. The company is focused on continuing to expand gold production at El Chanate, with the goal of becoming the next mid-tier producer in Latin America.

Watch BNN interview Capital Gold's President and COO, John Brownlie, about increasing its reserves more than 60%.

"This past month the company announced the long-awaited rollback on a 4-to-1 basis and it was good to see our share price remain solid after the news. We had a brief dip but overall I would say the rollback went very well and the AMEX listing should do wonders for additional interest in the story.

CGC is in a very good position and will begin to get the attention of more and more investors as the profits continue to roll in and the company looks to do more exploration drilling. They have the money to create more value and that value sooner or later will be realized when a bigger fish comes to buy them out at a very attractive level.

CGC is once again a STRONG BUY and becomes the number 1 listed company on our Top 10 List."
    -   Mining Speculator (02/28/10)

"Completion of 4 for 1 Reverse Stock Split—Capital Gold Corp. reported the completion of a reverse stock split effective Jan. 25th 2010

Listing on NYSE-AMEX—The company announced that it has been authorized to list its common shares on the NYSE AMEX stock exchange, effective Feb. 2, 2010.

Additional Crushing Plant & Leach Pad Operational; Increased Production Expected—CGC noted that an additional crushing/screening plant and a new leach pad will increase production at the company's El Chanate mine in Sonora, Mexico

2010 Outlook—Capital Gold expects to continue to test exploration targets, including the Saric 'El Oso' concession near their current property; they also expect to replace depleted reserves with a drilling campaign in 2010. Additionally, the company expects to produce a new mine plan with a 'super-pit' option due to prevailing gold prices. The company is also investigating the addition of a fourth crusher to improve recovery rates, currently around 60%. El Chanate currently contains 1.5 million ounces of Proven and Probable reserves at a grade of 0.019 oz/ton; Measured and Indicated resources of 69,000 ounces of gold at a grade of 0.013 oz/ton and 157,000 ounces of Inferred resources at a grade of 0.02 oz/ton as of April 8, 2009 and based upon $800/oz gold. The Company also received silver credits of approximately $1 million in 2009."
    -ADAM GRAF,   DAHLMAN ROSE & CO. (02/02/10)

"This morning, Capital Gold Inc. announced the successful startup of the additional crushing unit and leach pad at its El Chanate gold mine in Mexico. Since January 5, the company has been stacking on the new pad and maintaining crushing rates in the order of 14,000–18,000 tons per day (our production estimates currently assume the lower-end of that range). The company also noted that the daily gold in solution reported to the recovery plant has increased to 60,000 oz per year, putting it on track to produce 70,000 oz in calendar 2010.

We are encouraged by the update and note that drilling has also resumed at the Saric property, located a short drive from the mine site. Preliminary drilling results released in early December suggest potential for additional resources there, providing the company with a second avenue for growth, given the project's proximity to the mine site. The plant at El Chanate has the capacity to produce 250,000 oz of annual metal, well above the mine's targeted production rate, so the idea would be to truck load carbon from Saric, thus reducing upfront capex and ongoing opex.

Overall, we view this update as positive.

Our target of $7.00/share has been adjusted for the 1-for-4 share consolidation that took effect yesterday."
    -STUART MCDOUGALL,   JENNINGS CAPITAL INC. (01/26/10)

"As expected, CGC finally announced the rollback of their shares in the market. The common shares of the company were posted for trading at the opening on Monday, Jan. 25, 2010, on a 1 to 4 consolidated basis, which reduces the overall shares outstanding to 48,535,154.

The company also announced that, to meet minimum share price requirements in connection with its NYSE Amex listing application, it was required to do this reverse stock split.

. . .As I have said before, I am not a big fan of rollbacks but I understand what the company is trying to accomplish. CGC is a serious player in the gold production business and is a very profitable company. The nature of their company was no longer suited to the OTCBB market and deserves to have a listing on the AMEX. Overall, this move will be well received in the longer term despite the initial loss of value the rollback has had on current investors. As is usually the case, the stock price takes a significant hit once the rollback has been initiated. Shares of CGC are trading as I write this at $3.23 U.S., which would be $0.81 cents pre-roll back.

I believe the stock could settle a bit more before solidifying at its new rollback level. This would be a good time to pick up shares for the longer term. CGC is a very solid situation moving forward and will do well in time as gold prices move higher.

. . .CGC remains a BUY."
    -   Mining Speculator (01/26/10)

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