Cancana Announces Issuance of Preliminary Environmental & Installation Licenses to Build Manganese Processing Plant

TORONTO, June 6, 2013 - Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") is pleased to announce that the Secretaria de Estado do Desenvolvimento Ambiental, (State Secretariat for Environmental Development), ("SEDAM"), has issued the Preliminary Environmental License, ("LP"), and the Installation License, ("LI"), on the Company's 886241/2011 manganese claim.

The issuance of the LP License provides for approval of the initial environmental plan developed by Cancana and in conjunction with its consultants. This is specifically for the Valdirao area within the 886241/2011 manganese claim.

The LI License allows Cancana to establish a processing facility on Valdirao in order to process ore.

These two Licenses are the first step in the full approval process of commencing trial mining and operations. With the LP and LI Licenses approved, these have now been presented to the Departamento Nacional de Produção Mineral, (www.dnpm.gov.br) (Department of Mines for Mineral Production), ("DNPM"), for approval and issuance of the Guia de Utilizacao, (Trial Mining Permit), (Guia). Once this has been issued, the Guia will then be presented back to SEDAM for issuance of the Operating License. The final step in this approval process is the Water License. All of the above steps are needed prior to submission and approval of the Water License.

Once Cancana has received the approval of all of these Licenses then the Company will be able to commence the infrastructure and preparatory work needed in order to establish operations. At this time Cancana is working with its consultants in order to complete the planning for the infrastructural requirements to commence operations.

Andrew Male, President & CEO of Cancana, commented; "The issuance of the LP and LI Licenses is another exciting step for Cancana as it transitions from exploration to production. The Valdirao project is a good opportunity for Cancana to develop itself and grow organically from greenfield to brownfield. The permitting and operational development of Valdirao has always been a priority since we completed our exploration program and N.I. 43-101 Technical Reports on the area."

Cancana Resources Corp. is an exploration stage company that is transitioning into production with assets in Brazil and Canada. The Company has been seeking projects that expand its resource base and provide for near term production and revenue. All available resource reports and information on the Company's properties are located on the Company website.


Issued on behalf of the Board of Directors of Cancana Resources Corp.

Mr. Andrew Male
CEO & Director



The information in this news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this release, words such as "estimate", "expect", "anticipate" and "believe" as well as similar expressions are intended to identify forward-looking statements. Such statements are used to describe management's future plans, objects, and goals for the Company and therefore involve inherent risks and uncertainties. The reader is cautioned that actual results, performance or achievements may be materially different from those implied or expressed in such statements, which speak only as of the date, the statements were made. The Company does not update forward-looking statements continually as conditions change. We seek safe harbour.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



Contact

Cancana Resources Corp.
+1 403 269 2065
cancana.ir@cancanacorp.com
www.cancanacorp.com

CHF Investor Relations
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