COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is
pleased to announce it has received results from the 2011 exploration program
completed on its 11,324 hectare Hit Property (the "Property") located
approximately 27 km's north of Princeton, B.C.


The 2011 program consisted of a detailed compilation of all the historic and
recent work completed on the Property, followed by a trenching program at the
Hit Main Zone. The compilation work indicates that the property covers more than
19 previous minfile occurrences and has high potential for copper-gold porphyry
style mineralization in a geologically similar setting to the Copper Mountain
Mine to the south and the Afton Mine to the north.


At the Hit Main Zone, gold mineralization occurs in mesothermal quartz veins
that are hosted in a 40 metre wide shear zone as demonstrated by previous
trenching. The 2011 trenching program exposed a 120 by 25 metres portion of the
main zone and was channel sampled across its entire width with the channels at 2
to 4 metres spacing. In total 736 channel samples were collected.


A 26 metre section in the southern part of the exposed system was dominated by
well mineralized multi-episodic quartz veins that at a cut-off grade of 2.4 g/t
gold averaged 5.58 g/t gold and 56.8 g/t silver over an average horizontal width
of 1.4 metres (estimated true width of 1.1 metres). The best interval from this
section returned 10.6 g/t gold and 98 g/t silver over an estimated true width of
1.0 metre. A select sample quartz vein material from this interval returned 55.8
g/t gold and 577 g/t silver.


The table below summarizes some of the better grade intercepts returned from
other parts of the exposed vein system.




---------------------------------------------------------------------------
                                                             Gold    Silver
Trench                   Sample    From      To   Width     (g/t)     (g/t)
---------------------------------------------------------------------------
60                       170573    5.25    6.00    0.75      11.9     154.0
---------------------------------------------------------------------------
39                       170278    4.60    5.60    1.00      9.80       118
---------------------------------------------------------------------------
48                       170401    4.65    5.50    0.85      7.20       100
---------------------------------------------------------------------------
Trench 90-07 SE wall     170606    2.40    3.00    0.60      9.80       122
---------------------------------------------------------------------------
Trench 90-07 NW wall     170615    4.30    5.30    1.00      7.40      76.0
---------------------------------------------------------------------------



The focus of the compilation program was to bring together and analyze all of
the historic geophysical data and the geophysical data collected by the Company
in 2010. The results of this compilation demonstrate that the shear zone that
hosts the quartz veins at the Hit Main zone is clearly defined as a linear
conductive feature containing several discreet zones of lower magnetic
intensity. This feature, called the Hit Shear Zone, is at least 2.5 kilometres
in length, extending from south of the Hit showing northwest to the property
boundary. Except at the trenched area at the Hit Showing, the Hit Shear Zone is
covered by glacial till and has never been tested by trenching or drilling.


Adam Travis, President and CEO, states, "We are encouraged that our trenching
program demonstrated the continuity of gold mineralization at the Hit Main Zone
and are excited that our geophysical data demonstrates that the known
mineralization occurs within a much larger potentially mineralized system."


The Company is planning a program of trenching and diamond drilling to test for
potentially larger gold mineralized quartz veins along the 2.5 kilometre extent
of the Hit Shear Zone.


The samples were sent to Ecotech Laboratory Ltd. in Kamloops for 30 gram gold
fire assay and 28 elements ICP analyses. National Instrument 43-101 compliant
procedures included laboratory standards and blanks inserted into the sample
stream and locked sample chain of custody from the sample site to the analytical
laboratory. Final check independent second laboratory assays were also sent to
Acme Analytical Laboratories in Vancouver however these have not yet been
received.


Qualified Person

The program was managed by Leo Lindinger, P.Geo. of Renaissance Geoscience
Services Inc. an independent Qualified Person. The technical content of this
press release was reviewed by Greg Dawson, P.Geo.


About Colorado

Colorado is currently engaged in the business of mineral exploration for the
purpose of acquiring and advancing mineral properties located in British
Columbia and the Yukon and is also aggressively seeking properties in Latin
America. Colorado's primary focus is on the Oro Property located in the
MacMillan Pass area of the Yukon, in which it has the option to acquire a 100%
interest.


ON BEHALF OF THE BOARD OF DIRECTORS OF COLORADO RESOURCES LTD.

Adam Travis, President and Chief Executive Officer

NR 12-02

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking information within the meaning of
Canadian securities laws. Such information includes, without limitation,
information regarding proposed exploration activities. Although the Company
believes that such information is reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking information is typically
identified by words such as: believe, expect, anticipate, intend, estimate,
postulate and similar expressions, or are those, which, by their nature, refer
to future events. The Company cautions investors that any forward-looking
information provided by the Company is not a guarantee of future results or
performance, and that actual results may differ materially from those in
forward-looking information as a result of various factors, including, but not
limited to, the state of the financial markets for the Company's equity
securities, the state of the market for gold or other minerals that may be
produced generally, recent market volatility; variations in the nature, quality
and quantity of any mineral deposits that may be located, the Company's ability
to obtain any necessary permits, consents or authorizations required for its
activities, to raise the necessary capital or to be fully able to implement its
business strategies and other risks associated with the exploration and
development of mineral properties. The reader is referred to the Company's
prospectus dated September 16, 2010 for a more complete discussion of such risk
factors and their potential effects, a copy of which may be accessed through the
Company's page on SEDAR at www.sedar.com.
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