Capital Gold Responds to Timmins Announcement

    


    
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<p>NEW YORK, <span class="xn-chron">Sept. 27</span> /CNW/ -- Capital Gold Corporation (NYSE AMEX: CGC; TSX: CGC) ("Capital Gold" or the "Company") announced today that its board of directors authorized the Company to engage in a process of exploring strategic alternatives to enhance stockholder value. To this end, the board of directors formed a special committee (the "Special Committee") comprised of independent board members to assist management in this effort. The Special Committee, with the assistance of Cormark Securities, its financial advisor, solicited and reviewed proposals submitted in response to such solicitation. In connection with such solicitation, the Company received a proposal from Timmins Gold Corp. Notwithstanding the fact that Timmins failed to execute a mutually agreed upon confidentiality agreement with the Company, it was given the opportunity to meet with the Special Committee and present its proposal. After careful deliberations and at the recommendation of Cormark, the Special Committee elected to reject certain proposals submitted to Cormark and the Special Committee including, but not limited to the Timmins proposal. With the assistance of Cormark and after careful deliberations, the Special Committee determined that the Timmins proposal was not in the best interests of the Company's stockholders.</p>
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<p>The Special Committee is currently considering the Company's strategic alternatives. However, no assurances can be given that such consideration will result in a transaction. Subject to regulatory requirements, Capital Gold does not intend to disclose developments unless and until the Company has entered into a definitive agreement in respect of a specific transaction.</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>. On <span class="xn-chron">August 2, 2010</span>, Capital Gold acquired Nayarit Gold Inc. Capital Gold is focused on optimizing the El Chanate operations and advancing the Del Norte deposit in the Orion District in the state of Nayarit, <span class="xn-location">Mexico</span>. Capital Gold also owns and leases mineral concessions near the town of Saric, also located in Sonora, that are undergoing 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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    Cautionary Note Regarding Forward Looking Statements

    
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<p>Statements in this press release and the statements of representatives and partners of Capital Gold Corporation (the "Company") related thereto, other than statements of historical information, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects," "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," or similar expressions. Investors are cautioned that forward-looking statements are inherently uncertain and subject to material risks. 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 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, regulatory or government approvals; the availability of adequate water supplies; mining or processing issues, and fluctuations in gold price and costs. Many of these factors are beyond the Company's control. There can be no assurance that future developments affecting the Company will be those anticipated by management or that the Special Committee's consideration of the Company's strategic alternatives will result in a transaction.</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), copies of which are available from the SEC or may be obtained upon request from the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.</p>
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For further information: Kelly Cody, Investor Relations Manager, Capital Gold Corporation, [phone], Fax: [phone], [email protected] Web Site: http://www.capitalgoldcorp.com