CGC) ("Capital Gold" or the “Company”) announced today that its board of directors authorized

the Company to engage in a process of exploring strategic alternatives to enhance stockholder

value. To this end, the board of directors formed a special committee (the “Special Committee”)

comprised of independent board members to assist management in this effort. The Special

Committee, with the assistance of Cormark Securities, its financial advisor, solicited and

reviewed proposals submitted in response to such solicitation. In connection with such

solicitation, the Company received a proposal from Timmins Gold Corp. Notwithstanding the

fact that Timmins failed to execute a mutually agreed upon confidentiality agreement with the

Company, it was given the opportunity to meet with the Special Committee and present its

proposal. After careful deliberations and at the recommendation of Cormark, the Special

Committee elected to reject certain proposals submitted to Cormark and the Special Committee

including, but not limited to the Timmins proposal. With the assistance of Cormark and after

careful deliberations, the Special Committee determined that the Timmins proposal was not in

the best interests of the Company’s stockholders.

        The Special Committee is currently considering the Company’s strategic alternatives. However,

no assurances can be given that such consideration will result in a transaction. Subject to

regulatory requirements, Capital Gold does not intend to disclose developments unless and until

the Company has entered into a definitive agreement in respect of a specific transaction.

About Capital Gold

Capital Gold Corporation (CGC) is a gold production and exploration company. Through its

Mexican subsidiaries and affiliates, it owns 100% of the "El Chanate" gold mine located near the

town of Caborca in Sonora, Mexico. On August 2, 2010, Capital Gold acquired Nayarit Gold

Inc. Capital Gold is focused on optimizing the El Chanate operations and advancing the Del

Norte deposit in the Orion District in the state of Nayarit, Mexico. Capital Gold also owns and

leases mineral concessions near the town of Saric, also located in Sonora, that are undergoing

exploration for gold and silver mineralization. Additional information about Capital Gold and

the El Chanate Gold Mine is available on the Company's website, www.capitalgoldcorp.com.

Statements in this press release and the statements of representatives and partners of Capital Gold Corporation (the

"Company") related thereto, other than statements of historical information, are forward-looking statements within

the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without

limitation, statements with respect to the Company's plans, objectives, projections, expectations and intentions and

other statements identified by words such as "projects," "may," "could," "would," "should," "believes," "expects,"

"anticipates," "estimates," "intends," "plans," or similar expressions. Investors are cautioned that forward-looking

statements are inherently uncertain and subject to material risks. Actual performance and results may differ

materially from those projected or suggested due to certain risks and uncertainties, some of which are described

below. Such forward-looking statements include comments regarding the future growth of the Company. Factors

that could cause actual results to differ materially include timing of and unexpected events during construction,

expansion and start-up; variations in ore grade, strip ratio, tonnes mined, crushed or milled; delay or failure to

receive board, regulatory or government approvals; the availability of adequate water supplies; mining or processing

issues, and fluctuations in gold price and costs. Many of these factors are beyond the Company's control. There can

be no assurance that future developments affecting the Company will be those anticipated by management or that

the Special Committee’s consideration of the Company’s strategic alternatives will result in a transaction.

Any forecasts contained in this press release constitute management's current estimates, as of the date of this press

release, with respect to the matters covered thereby. We expect that these estimates will change as new information

is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect

to update these estimates at any time, we do not undertake to update any estimate at any particular time or in

response to any particular event. Investors and others should not assume that any forecasts in this press release

represent management's estimate as of any date other than the date of this press release.

Additional information concerning certain risks and uncertainties that could cause actual results to differ materially

from that projected or suggested is contained in the Company's filings with the Securities and Exchange

Commission (SEC), copies of which are available from the SEC or may be obtained upon request from the

Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a

result of new information, future events or otherwise, except as required by applicable law.

For more information, please contact:

Capital Gold Corporation

Tel: (212) 344-2785

Fax: (212) 344-4537

Email: kelly@capitalgoldcorp.com