Capital Gold Corporation Announces an Increase of 29% in Net Income Compared to Previous Quarter

    Earnings of $0.02 Per Share for the Third Quarter

    NEW YORK, June 12 /CNW/ -- Capital Gold (TSX: CGC; OTC Bulletin Board:  
CGLD) reported today an increase in net income for the third fiscal quarter,
ending April 30, 2008, as compared to the second quarter, resulting in
earnings per share of $0.02 for the quarter and $0.04 for the nine months.

     -- Net income was approximately $2,740,000 in the third quarter. The
        Company had a 29% increase in net income compared to $2,126,000 in the
        second quarter. Earnings per share for third quarter were $0.02 and
        $0.04 for the nine months ended April 30, 2008.
     -- For the quarter ending April 30, 2008, net sales were $8,730,000 from
        9,466 ounces of gold sold at an average price of $922 per ounce, as
        compared to sales of $8,043,000 from 9,550 ounces sold at an average
        price of $843 per ounce for the second quarter.
     -- Cash costs of $247 were achieved for the nine months ending April 30,
        2008 -- well below the gold industry average of approximately $371 per

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    John Brownlie, Capital Gold's Chief Operating Officer, said: "In the
third quarter, we continued to forecast our production goal of 50,000 for the
2008 calendar year.  The mine produced over 4,200 ounces of gold and gold
equivalent during the month of May, an increase over the prior months.  We
anticipate that production for June and July will be similar to that of May."
    Brownlie added, "The construction of the new ADR plant, and refinery
upgrades to accommodate increased production, are progressing as planned for
commissioning during September.  To date, the civil works and procurement are
complete, and most of the US sourced equipment is on-site.  The ADR tanks and
piping will be tested this month." Capital Gold management believes once these
upgrades are in place, they will achieve their projected production rate of
70,000 ounces of gold in 2009.
    A conference call discussing the third quarter results will be held on
Thursday, June 12th, 2008, at 1:00 PM Eastern Time and will be accessible
through the following:

     Dial-In Numbers:  1-800-942-2493 (North America)
                       1-212-231-2900 (International)
    Please dial in and register at least five minutes prior to the call.
Chris Chipman, Chief Financial Officer, John Brownlie, Chief Operating Officer
and Jeff Pritchard, VP Investor Relations will host the conference call. There
will be a question and answer period at the end of the call. The call will be
archived and available on the Company's web site within 48 hours.
    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,
    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, 
+1-212-344-2785, or Fax: +1-212-344-4537,, or 
Kelly Cody, Director, Corporate Communications, +1-212-344-2785, or Fax: 
+1-212-344-4537,, both of Capital Gold Corporation; 
or Media Inquiries, Victor Webb or Madlene Olson of Marston Webb
International,  +1-212-684-6601, or Fax: +1-212-725-4709,,
for Capital Gold  Corporation Web Site:

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