Positive Preliminary Economic Assessment for Colt's 100% owned Tabuaço Tungsten Project, Northern Portugal

Positive Preliminary Economic Assessment for Colt's 100% owned Tabuaço Tungsten Project, Northern Portugal

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Canada NewsWire

MONTREAL, Sept. 4, 2013

Trading Symbols:

GTP - (TSX-V)

P01 - (FRANKFURT)

COLTF - (OTCQX)

MONTREAL, Sept. 4, 2013 /CNW Telbec/ - Colt Resources Inc. ("Colt" or the "Company") (TSXV: GTP) (FRA: P01) (OTCQX: COLTF) is
pleased to announce the results of a positive Preliminary Economic
Assessment ("PEA") prepared by SRK Consulting (UK) Ltd ("SRK") for the
100% Colt-owned Tabuaço Tungsten Project, located in Portugal. The
final PEA report will be filed on SEDAR within 45 days. The PEA covers
the São Pedro das Águias (Tabuaço) tungsten deposit and the nearby
Aveleira tungsten deposit, both located within the Company's Tabuaço
Experimental Mining License (45 km²).

Nikolas Perrault, CEO and President of Colt stated; "We are very pleased
with the results of this PEA prepared by SRK. It demonstrates the
potential to develop this project with positive economics. While
initiating the Feasibility Study, Colt's next phase of work will
include upgrading the inferred resources to indicated resources and
identifying additional resources in close proximity to the known
deposits."

Preliminary Economic Assessment Summary

A PEA was prepared by SRK for Colt's 100% owned Tabuaço Tungsten Project
in Portugal. The PEA relied on NI43-101 compliant Indicated and
Inferred Mineral Resources as announced by Colt on October 3^rd, 2012.

The main conclusions from the PEA are shown on Table 1. All values are
in USD and the study assumes a USD 1.30/EUR exchange rate. A flat
tungsten price of USD 400/MTU W0₃ was used in the economic assessment. Capital and operating costs were
derived from a combination of first principles and SRK's experience
based on similar projects.

The conclusions and recommendations of the PEA are that the Tabuaço
Tungsten Project may be economically viable and that further studies
and field work for this project are justified.

SRK notes that the economic assessment is preliminary in nature and the
production schedules are inclusive of inferred classified mineral
resources that are considered too geologically speculative to have
economic considerations applied to them that would enable them to be
classified as Mineral Reserves. There is no certainty that the
preliminary economic assessment will be realized. Mineral resources
that are not mineral reserves do not have demonstrated economic
viability.

Table 1: Summary of Preliminary Economic Assessment results for Tabuaço
project, Portugal:

SRK Consulting (UK) Ltd.

		Units	Results
PRODUCTION
Capital development
	Lateral	(m)	5,949
	Vertical	(m)	435
	Waste mined	(kt)	398
Production
Production rate		(ktpa)	400
	Ore Mined and Processed - SPA	(kt)	2,582
		(% WO₃)	0.37
	Ore Mined and Processed - AVE	(kt)	975
		(% WO₃)	0.42
	Ore Mined and Processed - TOTAL	(kt)	3,557
		(% WO₃)	0.39
Recovery		%	90.25
Recovered Metal		(MTU EQ WO₃)	1,240,482
Mine Life		(years)	12
FINANCIAL
Revenue		(USDm)	496.2
Operating Costs		(USDm)	-244.6
Royalty		(USDm)	-5.0
Operating Profit		(USDm)	246.6
Net Operating Profit		(USDm)	196.0
Capital Expenditure		(USDm)	-86.8
Cashflow		(USDm)	109.2
Post-Tax Reporting
NPV @ 5%		(USDm)	67.4
IRR		(%)	30.7
Cash Cost		(USD/t_ore)	70.17
		(USD/MTU WO₃)	201.20

Metal Price Sensitivity Analysis

The impact of a range of tungsten prices on the NPV_5% for the project has been studied in the PEA and the results are
reported in Table 2.

Table 2: Tungsten Price Sensitivity Analysis Results

	Unit					Base case
Metal Price	USD/MTU	300	325	350	375	400	425	450	475
NPV_5%	USDm	3.6	19.6	35.5	51.5	67.4	83.3	99.2	115.2

Discount Rate Sensitivity Analysis

The impact of a range of discount rates on the NPV for the project has
been studied in the PEA and the results are reported in Table 3.

Table 3: Discount Rate Sensitivity Analysis Results

	Unit			Base case
Discount rate	USD/MTU	0.0%	2.5%	5.0%	7.5%	10.0%	12.5%	15.0%	17.5%	20.0%
NPV	USDm	109.2	85.8	67.4	52.7	41.0	31.7	24.1	17.9	12.9

Several processing options were evaluated for the Project and the
economic assessment presented here is based on Colt's preferred base
case, which uses ore sorting and an acid tungsten recovery process. It
is noted that the planned trial mining will provide a bulk sample for
further testwork to verify the flowsheet.

Project Timeline and Optimization Efforts

The completion of this positive PEA is an important milestone in the
continued development of the Tabuaço Tungsten Project.

Colt's projected timeline to advance the project includes the following
milestones:

Q4 2014	Completion of Resource Update / Feasibility Study
2015	Full Mine Permitting
2015/16	Construction
2017	Production

Colt intends to address several areas during the Feasibility Study so as
to improve results included in the PEA. These will include:

Mineral Resources - Colt will focus on upgrading of Inferred Resources
to Indicated Resources and the identification of additional resources
in close proximity to the known deposits. Colt is confident that the
potential to increase resources through regional exploration is good.
Exploration work will be directed toward identifying additional
resources that will benefit the future mining operation.

Trial Mining - Colt will develop an adit to the orebody to determine the
geotechnical and mining conditions and to take a bulk sample for
metallurgical testwork.

Processing - Colt will complete ongoing testwork so as to finalize and
optimize process flowsheets leading to final plant design. The study
analysed several options that will be further evaluated and finalized.

Geotechnics - Colt will perform additional geotechnical investigations
designed to determine the ground support requirements.

Environmental - Work will continue to address the need to minimize the
impact of the future mining project.

Mining - Capital and operating costs will be confirmed and addressed in
detail to identify areas where improvements can be made so as to
benefit the future economics of the project. The mine design will be
updated based on the updated resources.

About Colt Resources Inc.

Colt Resources Inc. (www.coltresources.com) is a Canadian mining exploration and development company engaged in
acquiring, exploring, and developing mineral properties with an
emphasis on gold and tungsten. It is currently focused on advanced
stage exploration projects in Portugal, where it is one of the largest
lease holders of mineral concessions.

Jurgen Fuykschot MSc MBA MAusIMM (CP), Principal Consultant (Mining
Engineering), SRK Consulting (UK) Limited, is the independent qualified
person, as defined in NI 43?101, for the Tabuaço Preliminary Economic
Assessment. Mr. Fuykschot has reviewed the content of this press
release and consents to the information provided in the form and
context in which it appears.

The Company's shares trade on the TSX?V, symbol: GTP; the Frankfurt
Stock Exchange, symbol: P01; and, the OTCQX, symbol: COLTF.

FORWARD-LOOKING STATEMENTS: Certain of the information contained in this
news release may contain "forward-looking information". Forward-looking
information and statements may include, among others, statements
regarding the future plans, costs, objectives or performance of Colt
Resources Inc. (the "Company"), or the assumptions underlying any of
the foregoing. In this news release, words such as "may", "would",
"could", "will", "likely", "believe", "expect", "anticipate", "intend",
"plan", "estimate" and similar words and the negative form thereof are
used to identify forward-looking statements. Forward-looking statements
should not be read as guarantees of future performance or results, and
will not necessarily be accurate indications of whether, or the times
at or by which, such future performance will be achieved.
Forward-looking statements and information are based on information
available at the time and/or management's good-faith belief with
respect to future events and are subject to known or unknown risks,
uncertainties, assumptions and other unpredictable factors, many of
which are beyond the Company's control. These risks, uncertainties and
assumptions include, but are not limited to, those described under
"Risk Factors" in the Company's annual information form available on
SEDAR at www.sedar.com and could cause actual events or results to differ materially from
those projected in any forward-looking statements. The Company does not
intend, nor does the Company undertake any obligation, to update or
revise any forward-looking information or statements contained in this
news release to reflect subsequent information, events or circumstances
or otherwise, except if required by applicable laws.

PEA: ADDITIONAL CAUTIONARY NOTE

This note regarding the preliminary economic assessment (PEA) is in
addition to cautionary language already included within the news
release as required under NI 43-101. The PEA is preliminary in nature
and includes Inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to
them that would enable them to be categorized as mineral reserves, and
there is no certainty that the PEA based on these mineral resources
will be realized. Mineral resources that are not mineral reserves do
not have demonstrated economic viability.

Neither the 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.

Figure 1: Property Geology within the Tabuaço Project Area

SOURCE COLT RESOURCES INC.

PDF available at: http://stream1.newswire.ca/media/2013/09/04/20130904_C4203_DOC_EN_30387.pdf