Capital Gold Buys Out Remaining Ounces Under The Gold Hedge Agreement

    60,000 Ounce Annual Production Completely Unhedged

    NEW YORK, Feb. 24 /CNW/ -- Capital Gold (TSX: CGC; OTC Bulletin Board:  
CGLD) announced today that the Company has settled with Standard Bank, Plc.,
the remaining 58,233 ounces of gold under the original Gold Price Protection
arrangements entered into in March 2006.  The purpose of these arrangements at
the time was to protect the Company in the event the gold price dropped below
$500 per ounce.  Total cost to unwind these arrangements is approximately
US$1.9 million, saving the Company over $130,000.  This now enables Capital
Gold to move forward as a completely unhedged producer.

    Capital Gold Chairman Gifford Dieterle said, "This arrangement was
required as part of our original loan agreement with Standard Bank. 
Considering that we've been in production for over 18 months and the gold
price has nearly doubled since the time of the financing, we felt the best use
of funds, at this point, was to unwind the hedge and eliminate any
misconceptions regarding it."

    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 Company has produced over
65,000 ounces of gold since inception. 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, the impact of
any hedging arrangements, including the termination of such arrangements;
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 expansion; 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,
+1-212-344-2785, Fax: +1-212-344-4537,; or Kelly
Cody, Director Corporate Communications, +1-212-344-2785, Fax:
+1-212-344-4537,, both of Capital Gold Corporation;
or Victor Webb or Madlene Olson, both of Marston Webb International,
+1-212-684-6601, Fax: +1-212-725-4709, Web Site:

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