Capital Gold and Standard Bank Agree to Refinance Project Loan for El Chanate



    
    Second Quarter Gross Proceeds Improve by 23%
    

    NEW YORK, March 3 /CNW/ -- Capital Gold (OTC Bulletin Board:   CGLD; TSX:
CGC) announced that they have mandated Standard Bank Plc., to refinance the
existing project finance facility on the El Chanate mine. The expected closing
date is the end of April 2008.
    Capital Gold Chairman Gifford Dieterle said: "We are very pleased to be
continuing our relationship with Standard Bank. The Bank was there for us when
we needed the financing to begin the El Chanate project, and we are happy that
they will be here as we grow the company." Dieterle added, "Now that we have
been in production for seven months, it was appropriate to re-evaluate our
loan position. Given our current ore reserves and the increasing gold and
silver price, the El Chanate mine financial model has changed significantly
from the time of the original loan agreement."
    Some of the key points to the refinancing include:

    
    -- Removal of cash restrictions and covenants.
    -- Reduction of the finance interest rate by 1.5%.
    -- Addition of a five million dollar line of credit.
    -- Exercise of a portion of the warrants currently held by Standard Bank,
       to provide additional support for El Chanate expansion plans.
    
    Capital Gold also announced that the second fiscal quarter, which ended
January 31, 2008 saw a 23% increase in gross proceeds, to $8,043,000, which is
up from $6,526,000 in the first quarter. Total ounces of gold sold for the
quarter were 9,550. Details of the financial results will be available in mid-
March.
    John Brownlie, Capital Gold's COO said: "With the current leach pad
expansion scheduled to be completed by the end of April we have now turned our
attention to the ADR plant capacity.  To achieve increased gold production
going forward, we have identified certain restrictions that are in the process
of being addressed. Recently, we doubled the installed pumping capacity to
increase solution flow to the leach pad and added additional carbon capacity
to the system." Brownlie also said: "For the longer term we have purchased an
additional set of carbon columns and a strip vessel to process an additional
two tonnes of carbon per strip. Once this project is complete it will lift the
restrictions limiting our current gold production. The leach pad expansion and
other upgrades are being funded from cash flow generated by our operation."
    
    About Capital Gold
    
    Capital Gold Corporation (CGLD: CGC) is a gold production and exploration
company.  Through its Mexican subsidiaries and affiliates, it owns 100% of the
El Chanate gold property in Sonora, Mexico. The proven and probable reserve is
now 832,000 ounces of gold. Further information about Capital Gold and the El
Chanate Gold Mine is available on the Company's website,
www.capitalgoldcorp.com.
    
    About Standard Bank
    
    The Standard Bank Group Limited is Africa's leading banking and financial
services group, with assets of approximately US$145 billion and over 42,000
employees in 39 countries across the globe. Standard Bank is authorized and
regulated by the Financial Services Authority. It is a member of the London
Stock Exchange, the London Bullion Market Association, the London Metal
Exchange, the London Platinum and Palladium Market and the New York Mercantile
Exchange (COMEX Division).
    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, grade, processing
rates and capacity, estimated future gold production, potential mine life 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, tonnes mined, crushed or
milled; delay or failure to receive board 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.
    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.  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.




For further information:

For further information: Jeff Pritchard, VP-Investor Relations, Capital 
Gold Corporation, +1-212-344-2785, Fax: +1-212-344-4537, 
pritchard@capitalgoldcorp.com; Media, Victor Webb or Madlene Olson, Marston 
Webb International, +1-212-684-6601, Fax: +1-212-725-4709, marwebint@cs.com; 
Investors in Canada, Robin Cook, Account Manager, CHF Investor Relations, 
+1-416-868-1079, Fax: +1-416-868-6198, robin@chfir.com, both for Capital  Gold
Web Site: http://www.capitalgoldcorp.com

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CAPITAL GOLD CORPORATION

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