Canaco Resources Inc. Announces $20,020,000 Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2010) - 

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE 
UNITED STATES

Canaco Resources Inc. (the "Company" or "Canaco") (TSX VENTURE:CAN), is 
pleased to announce that it has entered into a financing agreement pursuant 
to which a syndicate led by TD Securities Inc. and including Canaccord 
Genuity Corp., Haywood Securities Inc. and Dundee Securities Corp. (the 
"Underwriters"), has offered to purchase, on a bought deal private 
placement basis, 14,300,000 common shares of the Company at a price of 
$1.40 per share for total gross proceeds of $20,020,000 (the "Offering"). 
Canaco has also granted the Underwriters an option to purchase up to an 
additional 3,600,000 common shares at closing, which is exercisable by the 
Underwriters at any time up to 2 business days prior to closing.

The common shares issued with respect to the Offering will be subject to a 
four month hold period in accordance with applicable Canadian securities 
laws.

The closing of the Offering is expected to occur on or about August 4, 2010 
and is subject to receipt of all necessary regulatory approvals including 
that of the TSX Venture Exchange.