Capital Gold Corporation Announces Addition to Board
New Drilling Scheduled at its Saric Properties; Provides update at El Chanate

NEW YORK, Oct. 28 /PRNewswire-FirstCall/ -- Capital Gold Corporation (TSX: CGC - News; OTC Bulletin Board: CGLD - News) today announced certain changes to its Board of Directors. CEO and Chairman Gifford Dieterle, on behalf of the Board of Directors, is pleased to announce the appointment of Stephen M. Cooper as an independent director of the Company.

Dr. Cooper has over 20 years experience in the mining and petroleum industries. He brings strong technology experience to Capital Gold having previously held the CIO position at a leading energy information organization. Dr. Cooper is currently President of EnergyIQ, a start-up company providing information solutions to the energy industry. Dr. Cooper has a Ph.D. in Mining and a bachelor's degree in Mining Engineering, both from Nottingham University.

"This appointment is another important milestone for the Company," John Brownlie, Capital Gold's President and COO said. "Steve will play an important role continuing to develop the growth strategy of Capital Gold, not only with his mining qualifications, but also as a seasoned business professional."

Brownlie also provided an update on the exploration at the Company's Saric properties. "We have completed the latest drill campaign of 23 reverse circulation holes, totaling 2,052 meters. This brings the total number of holes drilled to date to 55," he said. "After reviewing the preliminary data with SRK Consulting of Lakewood, Colorado, we have commenced a second phase of the current drill campaign, consisting of an additional 18 reverse circulation holes for a total of 1,560 meters. These additional holes will target extensions to the mineralized structure by stepping out on a 60 meter grid from the current drilling."

At the El Chanate mine, in preparation for additional growth, the Company has more than doubled its water allocation by securing an additional 600,000 m3 per annum of water rights. This is in addition to the 575,000 m3 per annum currently owned. "While we have sufficient water for our current and near term projected requirements, water rights are in short supply in the state of Sonora. Not only do we compete with potential future mining, we also contend with agriculture, urban growth as well as the tourist development industry," Brownlie said. "Since water rights are transferrable, we will bank the new allocation for future production requirements," he added.