Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") announced today results from the second quarter of operations from its joint venture Brazil Manganese Corp ("BMC").

Increased production by 55% quarter over quarter

Rio Madeira plant approaching full production capacity

Cancana's President & CEO, Anthony Julien, said, "We are pleased to report our efforts to operate the BMC plants with more stability and efficiency is generating positive results. Following numerous operating enhancements, we increased production allowing our sales team to again achieve significant premiums to global benchmark manganese prices. We continue to improve our operations and also look forward to reporting results of our first exploration drill program that will be the foundation for our future expansion opportunity."

Production

Second quarter production at BMC totalled 2,143 tonnes of manganese oxide bringing the current stockpile to 7,056 tonnes (net of sales). Assays for the second quarter production are still pending. Assays for the first quarter production material reported an average grade of 51.0%. The average grade of the overall stockpile after sales based on available assay data for Q1 2015 was 52.4% Mni.

Under the guidance and leadership of recently appointed Mine Manager, Paulo Gontigo, the Rio Madeira plant is approaching full production capacity of approximately 1,000 tonnes per month. In addition to adding a second shift at the plant, a dry sieving process was installed that has resulted in increased production. Dry sieving removes material less than 5mm in size, which is the soil and fine manganese, and thereby aids in the washing ability of the plant by generating less clay.

Production in the second quarter was primarily from the Rio Madeira plant. From the beginning of June to the second half of August, the Jaburi plant has been closed as it is being retrofitted to meet safety and fire standards.

Sales

Second quarter sales at BMC totalled 338 tonnes and sales prices continued to average more than a 30% premium on current CIF prices. CIF Tianjin pricing for 44% manganese was $2.98 per dmtu as of June 26th, 2015

Fertilizer sales in Brazil slowed in the first-half of 2015 as farmers were concerned about weaker crop prices, the lower purchasing power of the Real and delayed credit availability from the government. As a consequence manufactures reduced their purchases of BMC manganese. It is expected the fertilizer stocks should be reduced to normal levels in the second half of 2015 and BMC sales volumes increase. The Company is targeting to have customer contracts with varying terms of up to one year to build relationships and a market presence. This sales program marks the beginning of our plan to have up to 70% of manganese production committed under offtake agreements.