CAPITAL GOLD CONTINUES TO SET RECORD GOLD PRODUCTION TOTALS; MANAGEMENT SEEKING ADDITIONAL PROJECTS IN MEXICO

Capital Gold Corp. has produced 11,888 ounces of gold in the first fiscal quarter of 2009 (ended Oct. 31, 2008) at its El Chanate mine in Sonora, Mexico. Gross proceeds from the quarter were just over $9.1-million, with an average sale price of $801 per ounce. John Brownlie, Capital Gold's chief operating officer, said: "We are exceeding each previous quarter's production totals on a consistent basis now. The new ADR plant is almost completely operational and we should continue to see production growth."

At a special meeting of stockholders on Oct. 31, Capital Gold's stockholders, by an overwhelming majority, authorized its board of directors to effect a reverse split of its common stock at a ratio in the range of 1-for-4 to 1-for-6. The split was proposed to meet the $2 minimum stock price requirement for listing of the company's common stock on the New York Stock Exchange Alternext US (formerly the American Stock Exchange).

Jeff Pritchard, Capital Gold's executive vice-president, said: "Despite the approval, the company has decided not to effect the split unless and until market conditions stabilize.

We need to see the trading in our shares, other junior mining shares, as well as the markets in general, recover to more comfortable levels before the board of directors decides to proceed with the split."

The market downturn has created other prospects for the company and there have been informal talks with other junior miners in the region. Mr. Brownlie added: "Our financial position is strong, and we are ideally placed to explore the unique opportunities being created by the current market conditions. So, while continuing to explore at El Chanate, we will be focusing on the acquisition of other projects and properties in Mexico."