Much of the developing world possesses significant informal artisanal small scale mining communities, often characterized by low health, safety and environmental standards, which have significant social and economic influence. The organization of Communities and Small Scale Mining (CASM) has estimated that between 13 - 20 million men, women, and children from over 50 developing countries are active in small scale mining activities, with 100 million more dependent on this sector for their livelihood.

CANADA GOLD

Canada Gold offers a balanced approach to resource development by establishing modern processing facilities to service active small scale mining regions in developing countries. By offering improved access to modern techniques, limiting miners’ reliance on harmful substances and offering fair pricing, Canada Gold will assist these mining communities in establishing sustainable socio-economic standards for their gold mining activities. Canada Gold’s efforts will also help encourage entrepreneurship, curtail health and safety risks, improve access to education and equipment, reduce environmental degradation, and minimize the pressures contributing to child labor. At the same time, Canada Gold achieves rapid entry into gold production and positive cash flow without any exploration and/or mining risk.

THE PERU PROJECT

High grade gold ore (>0.5 ounces/ton), in excess of the initial plant capacity, is currently being mined by local small scale artisanal miners and trucked to plants 1,400 km to Southern Peru. Canada Gold will have the advantage as the only modern plant of this capacity in Northern Peru in the immediate vicinity of the small scale mining activity. With the small scale miners already in production, this project has no exploration risk and no mining risk. Initially, the plant will be built to service 300 tons a day but will also be expandable to 600 tons per day for a modest additional investment.

Canada Gold will work with small scale miners to improve socio-economic prosperity.

Canada Gold will buy the miners’ ore based on measure weights and laboratory assays, the Company will deduct for plant recovery losses, processing and refining costs, capital recovery, gold price fluctuations, exchange rate risk and return on investment. Revenues are generated from gold sales, processing fees, and sales of other recoverable metals (e.g. silver, copper, molybdenum, etc.) as the ore will be purchased based on the gold content only.

At least 6,500 small scale miners are producing approximately 3,000 tons of high grade gold ore in Northern Peru.

A SOCIAL MINING MODEL

The small scale miners currently high grade their products, and only ship ore grading 0.7 ounces/ton (or higher) to the plants in Southern Peru in order to cover the high cost of transport. The Canada Gold plant, due to its proximity to the miners, will be able to process lower grade ore, and ore that is currently discarded at the mine site. This will increase revenues for the miners and increase overall resource recovery.

The small scale miners currently use mercury amalgamation to scalp off the high grade gold prior to selling to the plants in Southern Peru. The Canada Gold plant will have superior sampling and payment systems in place, which will eliminate the miners’ use of mercury amalgamation, a time consuming process which discharges toxic mercury into the environment and into the global food chain. The result will be less health risks, less environmental damage, greater efficiency, greater productivity and improved revenues for these miners and their regions.

It is estimated that there are many more people engaged in small scale mining than employed by multinational mining companies.

Peruvian government officials at the local, regional and federal level have all recognized the benefits of the Canada Gold plant in Northern Peru. They have committed to provide whatever assistance necessary to expedite permitting for the construction and commissioning of the plant.

The Canada Gold mineral processing model features robust economics.

PROJECT FUNDING

Canada Gold owns 50% of Canadian Ore Processors. The other 50% is owned by Grafton Resources Investment Trust, a 5-year closed end Cayman based fund managed in London, England listed on the Irish Stock Exchange. Canadian Ore Processors owns 100% of their Peruvian Subsidiary, Procesadora CanOrePro SA.

Poject financing is already secured.

Grafton has earned their 50% interest in Canadian Ore Processors by providing US$10 million equivalent in their shares which will be sold at a later date to provide capital for the project.

Canada Gold holds a call option issued by Grafton to purchase, within 3 years, and at the discretion of Canada Gold, the Grafton interest in Canadian Ore Processors for US$10 million in cash or Canada Gold stock at a floor conversion price of US$0.55/share, or the previous 30 day average trading price of Canada Gold, whichever is higher.

Share Structure

Financing as of November 20^th, 2009:

Pre Financing - 9.5 Million Shares

Financing - 3.5 Million Units

Post Financing - 13 Million Shares

Current Cash & Near Cash Assets - $4.3 Million

Key Personnel

Canada Gold has assembled an experienced team of professionals with over 100 years of combined experience to expedite this project.The key individuals include:

• Dave McMillan - Executive Chairman

• Andrew Neale, P. Eng. - President & Chief Executive Officer

• Rick Plotzki - Chief Operating Officer

• Ian Klassen - Independent Director

• Harold Forzley C.A. - Chairman of the Audit Committee

• Marc Tran - Chief Financial Officer

• Chad McMillan - Vice President, Corporate Communications

DISCLAIMER

This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this document.