Untitled Document

Heightened Gold Prices to Benefit Capital Gold (CGLD)

                The recent seizure of 15 British Royal Sailors and Marines has once again placed a flashpoint in the Middle East.  Iranís seizure and the countryís intransigence over its nuclear program and ambition have again added to the jitters of the market.  In response to the tensions, the buying of gold as a safe-haven investment has increased as investors watch for the possible outcome of the situation.  While the situation is not expected to lead towards armed hostilities, the United States military has begun a series of aggressive war games off the coast of Iran in a massive show of force.  This could lead to hostilities in that it openly provokes Iranian air defenses into making a mistake.


                Over all this situation serves to benefit gold mining companies who are near or in the midst of production.  Capital Gold Corp announced a week ago that the company was within 45 to 75 days of the start of production at the companyís El Chanate mining property in Mexico.  With an aggressive drilling program, the company is working at possibly increasing the volume of gold ounces that it can produce within budget.  Overall the current geopolitical situation is expected to stay the same if not escalate.  Iranís influence over the Middle East is growing, and they are unlikely to accede to Western demands without a multitude of concessions.  This should work to keep gold prices higher, and benefit companies like Capital Gold, in that the possibility of outright confrontation looms over the Middle East.

About Capital Gold

                Capital Gold Corp. (CGLD) is a gold exploration and development company. CGLD, through its Mexican subsidiaries, owns 100% of the El Chanate gold property in Sonora, Mexico. During August 2006 CGLD completed debt financing for the construction of the Chanate Mine. Engineering Procurement and Construction Management activities commenced June 1, 2006. Gold production is estimated to begin in the second quarter of 2007. Further information about Capital Gold and the El Chanate Gold Mine, along with current photographs, are available on the Company's website, http://www.capitalgoldcorp.com .

 
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