Capital Gold Announces Further Progress At El Chanate Gold Project; Purchases Major Equipment and Additional Mining Concession.

NEW YORK -- Capital Gold Corporation (OTC/BB: CGLD) announced today the first of several major equipment purchases at the El Chanate open pit gold project in Sonora Mexico, a significant step bringing the mine closer to production.

In addition to the equipment purchase, the company also announced that an additional mining concession - El Charro - had also been purchased and that the title had been received. El Charro represents an area of widespread gold mineralization and lies within the current EL Chanate property boundaries.

Describing the company's progress, Capital Gold's Chairman, Gifford Dieterle, said today that they had acquired two 7-foot Symons HD Short Head cone crushers which would undertake the final stage of the crushing process at El Chanate. Primary and secondary crushers are currently being evaluated for purchase, as well as screens and feeders. "Capital Gold personnel and outside experts are investigating several units currently made available to us and we anticipate further purchases later this month," he said.

Mr. Dieterle said that the company had also succeeded in establishing an excellent water supply at the mine site. The acquisition of a water well is now complete with ownership transferred to the company on June 1st. The well is located on a large regional aquifer that is capable of producing a sustained flow of about 1,200 gallons per minute, more than adequate for the company's needs. Mr. Dieterle said that pictures of the operating well are posted on the company's website, www.capitalgoldcorp.com.

Access to the El Chanate mine site is also well in hand. The company had purchased land for the right of way for both service and access roads and title had been transferred. "The purchase of the crushing unit is a significant step that brings us closer towards our ultimate goal of gold production at El Chanate. This, together with our purchase of the El Charro mining concession and the progress of a widespread gold mineralization that it brings, encourages us greatly," Mr. Dieterle added.

Further information about Capital Gold and the El Chanate project is available on the Company's website, www.capitalgoldcorp.com.

Statements in this press release, other than statements of historical information, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested due to certain risks and uncertainties, some of which are described below. Such forward-looking statements include comments regarding the establishment and estimates of mineral reserves and non-reserve mineralized material, future increases in mineral reserves, the recovery of any mineral reserves, construction cost estimates, construction completion dates, equipment requirements and costs, production, production commencement dates, grade, processing capacity, potential mine life, results of feasibility studies, development, costs and expenditures. Factors that could cause actual results to differ materially include timing of and unexpected events during construction, expansion and start-up; variations in ore grade, tons mined, crushed or milled; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms for equipment, construction, working capital and other purposes; the availability of adequate power and water supplies; the availability of adequate mining equipment; technical, permitting, mining or processing issues, and fluctuations in gold price and costs. There can be no assurance that future developments affecting the Company will be those anticipated by management.

The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release. Additional information concerning certain risks and uncertainties that could cause actual, results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the past 12 months, copies of which are available from the SEC or may be obtained upon request from the Company.