Capital Gold Pours First Gold at El Chanate Mine



    
    North America's Newest Gold Producer Delivers
    

    NEW YORK, Aug. 2 /CNW/ -- Capital Gold (TSX: CGC) (OTC Bulletin Board:  
CGLD) said today that they had begun gold production at their El Chanate Mine
in Sonora, Mexico.  In so doing, they have become Mexico's and North America's
newest gold producer. The first shipment was estimated at 575 ounces of gold
and shipped to Met-Mex Penoles on July 31 for final refining.
    A delighted Gifford Dieterle, Capital Gold's Chairman and CEO, said that
the beginning of production at El Chanate is the culmination of years of
dedicated work by everyone at Capital Gold. "We completed the bank financing
and began major construction of El Chanate in August of 2006. In less than one
year we are producing gold. This is a monumental achievement and a credit to
John Brownlie, our COO, and the team he has assembled."
    Norberto Roque Diaz de Leon, Coordinator of Mining at Mexico's Secretaria
de Economia,, said he was especially pleased that Capital Gold had begun gold
production in Sonora to become Mexico's newest producer. "Capital Gold has
today joined the ranks of a special group of well-managed mining companies who
have found success with us in Mexico. We wish them many years of profitable
production and growth in Sonora."
    Mr. Dieterle said the Company is moving forward in a number of areas.
Next on the horizon for Capital Gold's evolution will be the results of the
recently concluded drill campaign. Independent Mining consultants of Tucson,
AZ will be preparing the new proven and probable ore reserve, an updated mine
plan and 43-101 report for the Canadian authorities. It is anticipated this
will all be completed by the end of August. "Now that we have achieved our
goal of gold production at El Chanate, we are not content to rest on our
laurels. We are now looking at other mining properties with a view toward
acquisition. From this point forward we shall be focused on growing Capital
Gold into a mid-tier gold producer," he said.
    
    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. 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
capacity and potential mine life.  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, tons 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, 
pritchard@capitalgoldcorp.com; or Media inquiries, Victor Webb, or Madlene 
Olson , both of Marston Webb International, +1-212-684-6601, fax, 
+1-212-725-4709, marwebint@cs.com Web Site: http://www.capitalgoldcorp.com

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CAPITAL GOLD CORPORATION

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