Capital Gold and Standard Bank Agree to Refinance Project Loan for El Chanate

Second Quarter Gross Proceeds Improve by 23% NEW YORK, March 3 /PRNewswire-FirstCall/ -- Capital Gold (OTC BulletinBoard: CGLD; TSX: CGC) announced that they have mandated Standard BankPlc., to refinance the existing project finance facility on the El Chanatemine. The expected closing date is the end of April 2008. Capital Gold Chairman Gifford Dieterle said: "We are very pleased to becontinuing our relationship with Standard Bank. The Bank was there for uswhen we needed the financing to begin the El Chanate project, and we arehappy that they will be here as we grow the company." Dieterle added, "Nowthat we have been in production for seven months, it was appropriate tore-evaluate our loan position. Given our current ore reserves and theincreasing gold and silver price, the El Chanate mine financial model haschanged significantly from the time of the original loan agreement."
Some of the key points to the refinancing include: -- Removal of cash restrictions and covenants. -- Reduction of the finance interest rate by 1.5%. -- Addition of a five million dollar line of credit. -- Exercise of a portion of the warrants currently held by Standard Bank, to provide additional support for El Chanate expansion plans. Capital Gold also announced that the second fiscal quarter, which endedJanuary 31, 2008 saw a 23% increase in gross proceeds, to $8,043,000, whichis up from $6,526,000 in the first quarter. Total ounces of gold sold forthe quarter were 9,550. Details of the financial results will be availablein mid- March. John Brownlie, Capital Gold's COO said: "With the current leach padexpansion scheduled to be completed by the end of April we have now turnedour attention to the ADR plant capacity. To achieve increased goldproduction going forward, we have identified certain restrictions that arein the process of being addressed. Recently, we doubled the installedpumping capacity to increase solution flow to the leach pad and addedadditional carbon capacity to the system." Brownlie also said: "For thelonger term we have purchased an additional set of carbon columns and astrip vessel to process an additional two tonnes of carbon per strip. Oncethis project is complete it will lift the restrictions limiting our currentgold production. The leach pad expansion and other upgrades are beingfunded from cash flow generated by our operation." About Capital Gold Capital Gold Corporation (CGLD: CGC) is a gold production andexploration company. Through its Mexican subsidiaries and affiliates, itowns 100% of the El Chanate gold property in Sonora, Mexico. The proven andprobable reserve is now 832,000 ounces of gold. Further information aboutCapital Gold and the El Chanate Gold Mine is available on the Company'swebsite, http://www.capitalgoldcorp.com. About Standard Bank The Standard Bank Group Limited is Africa's leading banking andfinancial services group, with assets of approximately US$145 billion andover 42,000 employees in 39 countries across the globe. Standard Bank isauthorized and regulated by the Financial Services Authority. It is amember of the London Stock Exchange, the London Bullion Market Association,the London Metal Exchange, the London Platinum and Palladium Market and theNew York Mercantile Exchange (COMEX Division). Statements in this press release, other than statements of historicalinformation, are forward-looking statements within the meaning of thePrivate Securities Litigation Reform Act of 1995. Investors are cautionedthat forward-looking statements are inherently uncertain. Actualperformance and results may differ materially from those projected orsuggested due to certain risks and uncertainties, some of which aredescribed below. Such forward- looking statements include commentsregarding the establishment and estimates of mineral reserves andnon-reserve mineralized material, future increases in mineral reserves, therecovery of any mineral reserves, grade, processing rates and capacity,estimated future gold production, potential mine life and future growth ofthe company. Factors that could cause actual results to differ materiallyinclude timing of and unexpected events during construction, expansion andstart-up; variations in ore grade, tonnes mined, crushed or milled; delayor failure to receive board or government approvals; the availability ofadequate water supplies; mining or processing issues, and fluctuations ingold price and costs. There can be no assurance that future developmentsaffecting the Company will be those anticipated by management. Any forecasts contained in this press release constitute management'scurrent estimates, as of the date of this press release, with respect tothe matters covered thereby. We expect that these estimates will change asnew information is received and that actual results will vary from theseestimates, possibly by material amounts. While we may elect to update theseestimates at any time, we do not undertake to update any estimate at anyparticular time or in response to any particular event. Investors andothers should not assume that any forecasts in this press release representmanagement's estimate as of any date other than the date of this pressrelease. Additional information concerning certain risks and uncertaintiesthat could cause actual, results to differ materially from that projectedor suggested is contained in the Company's filings with the Securities andExchange Commission (SEC) over the past 12 months, copies of which areavailable from the SEC or may be obtained upon request from the Company.