Capital Gold Corporation Reports 6-Month Revenue Up 21% Over Prior Period

    


    
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<p>NEW YORK, <span class="xn-chron">March 15</span> /CNW/ -- Capital Gold Corporation (NYSE AMEX: CGC; TSX: CGC) today reported a 21% increase in revenue for the six months ending <span class="xn-chron">January 31, 2010</span>, compared to the prior year's period.  Below is a table comparing both three and six month performance for fiscal 2010 as compared to fiscal 2009.</p>
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    Summary of           For the        For the       For the       For the 
    Quarterly             three          three          six           six
    Results            months ended   months ended  months ended  months ended
    (000's except       January 31,    January 31,   January 31,   January 31,
    per share Data)        2010          2009           2010          2009
    
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    Revenues              13,228         11,369        24,955        20,544
    Net Income             2,944          3,196         5,884         5,133
    Basic net income per
     share(1)               0.06           0.07          0.12          0.11
    Diluted net income 
     per share(1)           0.06           0.06          0.12          0.10
    Gold ounces
     sold                 11,816         13,277        23,549        24,690
    Average price
     received             $1,119           $856        $1,060          $832
    Cash cost per ounce
     sold(2)                $372           $251          $355          $260
    Total cost per ounce
     sold(2)                $425           $290          $407          $299


    
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<p>(1) The financial information for the three and six months ending <span class="xn-chron">January 31, 2009</span>, has been recast so that the basis of presentation is consistent with that of the financial information for the three and six months ending <span class="xn-chron">January 31, 2010</span>.  This recast reflects a 1-for-4 reverse stock split of the Company's common stock that became effective on <span class="xn-chron">January 25, 2010</span>.</p>
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<p>(2) "Cash costs per ounce sold" is a Non-GAAP measure, which includes all direct mining costs, refining and transportation costs, by-product credits and royalties as reported in the Company's financial statements. "Total cost per ounce sold" is a Non-GAAP measure which includes "cash costs per ounce sold" as well as depreciation and amortization as reported in the Company's financial statements. "Costs applicable to sales per gold ounce sold" on a US GAAP basis for the six months ended <span class="xn-chron">January 31, 2010</span> and 2009, was <span class="xn-money">$371</span> and <span class="xn-money">$271</span>, respectively.  The items to reconcile to "cash costs per ounce sold" are as follows:  1) Intercompany management fees of <span class="xn-money">$14</span> and <span class="xn-money">$14</span>, respectively, and (2) other costs of <span class="xn-money">$2</span> and (<span class="xn-money">$3</span>), respectively. "Costs applicable to sales per gold ounce sold" on a US GAAP basis for the three months ended <span class="xn-chron">January 31, 2010</span> and 2009, was <span class="xn-money">$391</span> and <span class="xn-money">$275</span>, respectively.  The items to reconcile to "cash costs per ounce sold" are as follows:  1) Intercompany management fees of <span class="xn-money">$14</span> and <span class="xn-money">$14</span>, respectively, and (2) other costs of <span class="xn-money">$5</span> and <span class="xn-money">$10</span>, respectively.</p>
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<p>A conference call discussing the second fiscal quarter results will be held on <span class="xn-chron">Monday, March 15, 2010</span> at <span class="xn-chron">11 AM Eastern Time</span>, which will be accessible through dial-in conferencing.</p>
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    Dial-in Numbers:     1-800-926-5171 (North America)
                         1-212-231-2904 (International)



    
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<p><span class="xn-person">John Brownlie</span>, President and Chief Operating Officer, and <span class="xn-person">Chris Chipman</span>, Chief Financial Officer, will host the conference call. <span class="xn-person">Colin Sutherland</span>, President and CEO of Nayarit Gold (TSX: NYG), will also participate on the call. There will be a question and answer period at the end of the call. Please call in and register at least five minutes prior to the conference start time. This call will be archived and available on the Company's website within 48 hours.</p>
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    About Capital Gold
    
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<p>Capital Gold Corporation (CGC) is a gold production and exploration company. Through its Mexican subsidiaries and affiliates, it owns 100% of the "El Chanate" gold mine located near the town of Caborca in Sonora, <span class="xn-location">Mexico</span>. It also owns and leases mineral concessions near the town of Saric, also in Sonora, that are undergoing preliminary exploration for gold and silver mineralization.  Additional information about Capital Gold and the El Chanate Gold Mine is available on the Company's website, <a href="http://www.capitalgoldcorp.com">www.capitalgoldcorp.com</a>.</p>
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<p>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 a national stock exchange listing and future growth of the company. 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, strip ratio, tonnes mined, crushed or milled; delay or failure to receive board, national exchange or government approvals; the availability of adequate water supplies; 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.</p>
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<p>Any 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.</p>
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<p>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.</p>
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For further information: Kelly Cody, Investor Relations Manager, Capital Gold Corporation, Tel: [phone], Fax: [phone], [email protected]; or Media Inquiries: Victor Webb, or Madlene Olson, both of Marston Webb International, Tel: [phone], Fax: [phone], [email protected] Web Site: http://www.capitalgoldcorp.com