CAPITAL GOLD ANNOUNCES RECORD GOLD PRODUCTION

TOTALS FOR DECEMBER 2008

New York, January 6, 2009 - Capital Gold (TSX:CGC; OTC/BB:CGLD) announced today that it

produced 5,375 ounces of gold in December at its El Chanate mine in Sonora, Mexico. This

represents the Company’s best monthly production to date, and surpasses the previous best

monthly total of 4,750 ounces by 13%.

Capital Gold’s Chief Operating Officer, John Brownlie, said, “This increased production is the

result of careful planning and implementation of our production enhancement program that we

initiated in mid-2008. The program will culminate with the installation of an additional crusher

module, scheduled for late March. This will allow for further production increases.” All of the

financing for the program’s upgrades and additions have been provided through operational cash

flow.

About Capital Gold

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

Mexican subsidiaries and affiliates, it owns 100% of the El Chanate gold property in Sonora,

Mexico. The Company has produced 40,000 ounces of gold in its first year of operation. Further

information about Capital Gold and the El Chanate Gold Mine is available on the Company’s

website, www.capitalgoldcorp.com.

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