Cancana Resource Corp

Dr. William Pfaffenberger reports

CANCANA COMPLETES TERMS FOR ADDITIONAL MANGANESE CLAIM

Cancana Resources Corp. has agreed to terms for the acquisition of an additional manganese claim in the state of Rondonia, Brazil.

Cancana through its wholly owned Brazilian subsidiary, M.L.B. De Nogueira Mineracao, and its trading name Maio Mineracao, has agreed to terms of purchase for an additional manganese claim. The claim is 3,922.07 hectares in size and has occurrences of manganese at surface and in various rudimentary pits that the claim owner has completed.

This additional manganese claim will bring the total area of manganese bearing claims held by Cancana to 27,243.28 hectares. All of the claims are located in the state of Rondonia, Brazil and are easily accessible.

Under the terms of the acquisition agreement, Cancana has until June 1, 2012, to provide a positive notice to proceed with the acquisition. In the interim the claim owner has transferred the claim into the name of MLB in good faith and Cancana will conduct its own pitting and exploration program in order to ascertain the viability of this particular claim.

The early stage pitting on the claim completed by the claim owner, indicates a grade and quality of manganese mineralization that should be comparable with that of Cancana's existing claims and of surrounding claims held by unrelated parties.

Director and chief financial officer, Andrew Male remarks: "We are pleased to have secured this additional mineral claim as it has demonstrated some very interesting occurrences thus far. We are also particularly pleased with the work of our country manager Marcio Nogueira in the negotiations for this agreement to purchase. Marcio has successfully managed this process for Cancana and we anticipate that he will be able to continue to contribute to Cancana in a similar manner going forward."

We seek Safe Harbor.