Capital Gold Corporation Reports First Quarter Revenue Up 62%


    


    
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<p>NEW YORK, <span class="xn-chron">Dec. 13, 2010</span> /CNW/ -- Capital Gold Corporation (NYSE AMEX:  CGC; TSX: CGC) today reported a 62% increase in revenue and a 26% increase in gold ounces sold for the first fiscal quarter ended <span class="xn-chron">October 31, 2010</span>, compared to the first fiscal quarter of last year, as a result of higher gold prices and more ounces sold.  The Company recorded gold sales of 14,837 ounces at an average realized price of <span class="xn-money">$1,277</span> per ounce for the first fiscal quarter versus 11,733 ounces sold for the fiscal quarter in the prior period at an average price of <span class="xn-money">$999</span>.  Net income for the three months ended <span class="xn-chron">October 31, 2010</span> and 2009 was approximately <span class="xn-money">$2,954</span> and <span class="xn-money">$2,939</span>, respectively, representing an increase of approximately 1% over the prior period.</p>
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<p>Below is a table comparing the three month performance ended <span class="xn-chron">October 31, 2010</span> as compared to October 31, 2009:</p>
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    Summary of Quarterly Results              For the three  For the three
    ----------------------------              months ended   months ended
                                               October 31,    October 31,
    (000's except per share Data)              2010           2009
    
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    Revenues                                        $18,952         $11,727
    Net Income                                       $2,954          $2,939
    Basic net income per share                        $0.05           $0.06
    Diluted net income per share                      $0.05           $0.06
    Gold ounces sold                                 14,837          11,733
    Average price received                           $1,277            $999
    Cash cost per ounce sold (1)                       $476            $338
    Total cost per ounce sold (1)                      $539            $389


    
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          "Cash costs per ounce sold" is a Non-GAAP measure which
          includes all direct mining costs, refining and transportation
          costs and by-product credits as well as royalties as reported
          in the Company's financial statements.  "Total cost per ounce
          sold" is a Non-GAAP measure which includes "cash costs per
          ounce sold" as well as depreciation and amortization as
    (1)   reported in the Company's financial statements.


    
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<p>The following table reconciles the Non-GAAP measure "Cash costs per ounce sold" to the GAAP measure of "Costs applicable to sales per ounce sold":</p>
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    Reconciliation from non-GAAP measure
     to US GAAP                              For the three  For the three
                                             months ended   months ended
                                              October 31,    October 31,
                                              2010           2009
    Cash cost per ounce sold                          $476             $338
    Intercompany management fee                         13               14
    Other                                               (3)              (2)
    Costs applicable to sales per ounce
     sold*                                            $486             $350


    *This measurement excludes depreciation and amortization

    
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<p>"We are pleased with these results as we move toward achieving our fiscal year end operational and financial goals.  Since <span class="xn-chron">May 2010</span> we have been constructing an additional leach pad and initial stacking on the first panel is anticipated to begin this month.  The leach pad, which is anticipated to be completed in <span class="xn-chron">May 2011</span>, will increase our capacity and help us reach our production targets for fiscal 2011," stated <span class="xn-person">Colin Sutherland</span>, Capital Gold's President.</p>
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<p>For more details on our financial and operating results for the quarterly period ended <span class="xn-chron">October 31, 2010</span>,  please see our most recent Quarterly Report on Form 10-Q filed on <a href="http://www.sec.gov">www.sec.gov</a>.</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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<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.</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: For further information: Kelly Cody, Investor Relations Manager of Capital Gold Corporation, Tel: +1-212-344-2785, Fax: +1-212-344-4537, kelly@capitalgoldcorp.com Web Site: http://www.capitalgoldcorp.com

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CAPITAL GOLD CORPORATION

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