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CALGARY, ALBERTA--(Marketwire - April 8, 2011) - Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX VENTURE:CNE) (BVC:CNEC) is pleased to announce that during the quarter ended March 31, 2011 it issued 51,293 common shares as payment for services to consultants of the Corporation at a deemed price per share ranging from $1.53 to $1.63 which were the weighted average trading prices during the periods in question. These shares were issued pursuant to the terms of consulting agreements and are subject to a four-month hold period from the date of issuance.

Canacol is a Canadian based international oil and gas corporation with operations in Colombia, Brazil and Guyana. Canacol is publicly traded on TSX Venture Exchange (TSX VENTURE:CNE) and the Bolsa de Valores Colombia (BVC:CNEC). The Corporation's public filings may be found at [ www.sedar.com ].

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.