Capital Gold Announces Record Gold Production Totals for the Fourth Quarter of Operations



    
    Production up 18% Over the Previous Quarter

    
    NEW YORK, Aug. 12 /CNW/ -- Capital Gold (TSX: CGC; OTC Bulletin Board:  
CGLD) announced today that the Company has produced approximately 11,046
ounces of gold in the fourth fiscal quarter (ended July 31, 2008) at its El
Chanate mine in Sonora, Mexico. Estimates for the cost of production
(including mining, crushing, processing and site G & A) have remained at $246
per ounce, which are in line with the first three quarters of production, and
among the lowest in the gold industry.  Gross proceeds from the quarter are
just over $9.9 million, with an average sale price of $909 per ounce. Full
financial results from this fiscal year will be available after the Company
completes its audit and files its annual report on form 10-K, anticipated to
be in late October. After the filing of the annual report management plans to
hold a conference call to discuss the financial results. Participation details
for the conference call will be released just prior to the call.
    Capital Gold's Chairman Gifford Dieterle said, "These are tremendous
production numbers and all the credit goes to John Brownlie and his team in
Mexico. He was able to increase our gold production while the upgrades and
expansion were taking place."  Dieterle added, "We continue to be on target to
meet our stated goal of a 70,000 ounce production rate in 2009."
    Updating the production expansion progress at El Chanate, Capital Gold's
Chief Operating Officer, John Brownlie, said, "We have installed additional
carbon columns giving us the capacity we require for future planned
production.  Additionally, the acid wash module will be commissioned next
week, followed by the carbon strip module and the refinery upgrades." Brownlie
continued, "The final component, a new carbon regeneration kiln, is being
manufactured in the U.S. and is scheduled for an October delivery.  Once
completed, we will be able to process solution at a rate in excess of 70,000
ounces per year of gold production." All of these upgrades have been financed
through operating cash flow.  The Company also plans to initiate additional
drilling at depth within the pit and produce a new 43-101 reserve estimate by
year end.
    
    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.
    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, Executive Vice President,
pritchard@capitalgoldcorp.com, or Kelly Cody, Director, Corporate
Communications, kelly@capitalgoldcorp.com, both of Capital Gold Corporation,
+1-212-344-2785, Fax, +1-212-344-4537; or Media, Victor Webb or Madlene Olson,
both of Marston Webb International, +1-212-684-6601, Fax, +1-212-725-4709,
marwebint@cs.com, for Capital Gold Corporation Web Site:
http://www.capitalgoldcorp.com

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CAPITAL GOLD CORPORATION

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