Capital Gold Announces Gold Production Totals for December

    Greatest Monthly Production to Date

    NEW YORK, Jan. 8 /CNW/ -- Capital Gold (TSX: CGC; OTC Bulletin Board:  
CGLD) reported today that the Company has produced approximately 4,200 ounces
of gold in December from its El Chanate mine in Sonora, Mexico. Total
production for the current fiscal quarter, which ends January 31, now stands
at 7,200 ounces. The average sale price for this fiscal quarter has been
approximately $816 per ounce, as compared to $711 per ounce for the first
quarter. Production costs are still running well below industry average. The
Company's latest sale of gold was completed at $860 per ounce. Production for
the first full year of operation is estimated to be 50,000 ounces.
    Capital Gold Chairman Gifford Dieterle said: "Our December production
figures indicate that we are ahead of where we were during the same period in
the first quarter of operation. That, combined with the increasing gold price,
makes me believe that our second quarter performance will be better than our
very successful first quarter."
    Capital Gold's COO, John Brownlie, said: "The leach pad expansion is
going as planned, and we are currently stacking ore on the first of the newly
constructed panels. We will continue construction of the leach pad through the
first half of 2008. This will give the Company sufficient leach pad capacity
for the next five years, even at the planned increased production rates.
Assembly of additional leach pad stacking conveyors will begin this week and
is anticipated to be completed during January." Brownlie added: "Throughout
the initial period of operation we have continually focused on maximizing our
production through operator training and adjustments to the crushing circuit.
This has paid off because we are consistently crushing 30% more ore than the
feasibility study rates. Ultimately this increased tonnage crushed will result
in greater gold production and lower operating costs."

    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
832,000 ounces of gold. Further information about Capital Gold and the El
Chanate Gold Mine is available on the Company's website,
    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 of
Capital Gold Corporation, +1-212-344-2785, Fax: +1-212-344-4537,; or Media Inquiries, Victor Webb or Madlene
Olson, both of Marston Webb International, +1-212-684-6601, Fax:
+1-212-725-4709,; or Investor Relations in Canada, Robin
Cook, Account Manager of CHF Investor Relations, +1-416-868-1079, Fax:
+1-416-868-6198,; Web Site:

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