Canaco Resources Inc. Announces Increase of $18,900,000 to Treasury Bought Deal Financing and $10,800,000 to Secondary Bought Deal Financing

VANCOUVER, Feb. 24 /CNW/ --
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES/

VANCOUVER, Feb. 24 /CNW/ - Canaco Resources Inc. (TSXV:CAN) ('Canaco' or the 'Company') is pleased to announce that, in connection with its previously announced
bought deal offering (the 'Offering') co-led by Canaccord Genuity Corp.
and TD Securities Inc. (the 'Underwriters'), it has increased the size
of the treasury offering ('Treasury Offering') to 22,200,000 common
shares to raise gross proceeds of $119,880,000.  In addition, the
secondary offering of common shares ('Secondary Offering'), which the
Underwriters have agreed to purchase on a bought deal basis from
SinoTech (Hong Kong) Corporation Limited, has been increased to
8,000,000 common shares to raise gross proceeds of $43,200,000.

Net proceeds from the Treasury Offering are expected to be used by
Canaco to fund ongoing development and exploration activities on the
Company's African mineral properties and for general corporate and
working capital purposes.

The Common Shares to be issued pursuant to the Treasury Offering, and
the Common Shares to be sold pursuant to the Secondary Offering, are
expected to be offered by way of a short form prospectus in the
provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario
and New Brunswick.

Closing of the Treasury Offering and the Secondary Offering is scheduled
to occur on or about March 22, 2011 and is subject to certain
conditions including, but not limited to, the receipt of all necessary
regulatory and other approvals including the approval of the TSX
Venture Exchange and the securities regulatory authorities.

The securities offered have not been, and will not be, registered under
the U.S. Securities Act of 1933, as amended (the 'U.S. Securities Act')
or any U.S. state securities laws, and may not be offered or sold in
the United States or to, or for the account or benefit of, United
States persons absent registration or any applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This news release shall not constitute an
offer to sell or the solicitation of an offer to buy securities in the
United States, nor shall there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.

About Canaco

Canaco is a Vancouver-based mineral exploration company focused on
advanced exploration in Africa. Built on a foundation of experienced
management and focused on rapidly advancing exploration projects in
Tanzania and throughout Africa, Canaco believes it is well positioned
to build shareholder value through discovery and resource development.

Canaco's shares trade on the TSX Venture Exchange under the symbol CAN.

On behalf of the Board of Directors,


Andrew Lee Smith, P.Geo


President, CEO and Director

Cautionary Statement Regarding Forward-Looking Information

This news release contains 'forward-looking information' within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as 'anticipate', 'believe', 'plan',
'expect', 'intend', 'estimate', 'forecast', 'project', 'budget',
'schedule', 'may', 'will', 'could', 'might', 'should' or variations of
such words or similar words or expressions. Forward-looking information
is based on reasonable assumptions that have been made by the Company
as at the date of such information and is subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the Company
to be materially different from those expressed or implied by such
forward-looking information, including but not limited to: risks
associated with mineral exploration and development; metal and mineral
prices; availability of capital; accuracy of the Company's projections
and estimates; interest and exchange rates; competition; stock price
fluctuations; availability of drilling equipment and access; actual
results of current exploration activities; government regulation;
political or economic developments; environmental risks; insurance
risks; capital expenditures; operating or technical difficulties in
connection with development activities; personnel relations; the
speculative nature of strategic metal exploration and development
including the risks of diminishing quantities of grades of reserves;
contests over title to properties; and changes in project parameters as
plans continue to be refined. Forward-looking statements are based on
assumptions management believes to be reasonable, including but not
limited to the price of gold; the demand for gold; the ability to carry
on exploration and development activities; the timely receipt of any
required approvals; the ability to obtain qualified personnel,
equipment and services in a timely and cost-efficient manner; the
ability to operate in a safe, efficient and effective manner; and the
regulatory framework regarding environmental matters, and such other
assumptions and factors as set out herein. Although the Company has
attempted to identify important factors that could cause actual results
to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on
forward-looking information. The forward-looking information contained
in this news release is included for the purpose of providing investors
with information to assist them in understanding the Treasury Offering
and the Secondary Offering and may not be appropriate for other
purposes. The Company does not undertake to update any forward-looking
information that is included herein, except in accordance with
applicable securities laws.

NEITHER THE 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 NEWS
RELEASE

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Meghan Brown, Director Investor Relations
Telephone: 604-488-0822 or 1-866-488-0822
Visit our website: www.canaco.ca
Email: investors@canaco.ca