CXO Colorado Resources Ltd

COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is
pleased to announce that it has entered into an Option Agreement with Sunrise
Resources (TSX VENTURE:SHI) ("Sunrise") to acquire up to a 75% interest in the
Eldorado Copper-Gold Property located in northern British Columbia.


The Eldorado property covers the Eldorado and Bonanza Minfile copper-gold
showings located approximately 7 km along strike to the northeast of the Red
Chris Cu-Au deposit where Imperial Metals on May 7, 2012 announced it has
received its Mine Permit. With mine development to include a 30,000 tonne per
day milling operation and related open pit mine with reserves of 301.5 million
tonnes grading 0.359% copper and 0.274 grams per tonne gold.


Mineralization on the Eldorado Property was first discovered by Texasgulf (now
Xstrata) in 1975, and in 1979 they optioned the property to Esso Resources who
carried out further soil sampling, I.P geophysical surveys and trenching before
drilling 4 holes totaling 640.4 m in two small areas on the property. Although
results were generally sub-economic 3-meter intersections grading up to 0.23%
copper and 0.79 g/t Au in quartz-carbonate altered volcanics and intrusives were
encountered.


The property lay dormant until 1995 when Homestake optioned the property from
Falconbridge (now Xstrata) and completed another small program of soil, silt and
rock sampling. Soil test pits returned values to 1296 ppb gold and 2489 ppm
copper (0.25% Cu) at depths to 1.9 meters but generally low values near surface
suggesting a glacial clay horizon present below the soil level may be masking
underlying metal concentrations. Rock chip sampling of 1980 trenches returned
values up to 1500 ppb Au and 0.35% copper over 3 metre intervals.


In 2004 Amarc Resources conducted a 16.6 line kilometer Induced Polarization and
Magnetometer Survey and the collection of 276 conventional soil samples on trend
to the east of the previous work, this work extended the previously known IP
anomaly a further 500 metres to the east and also discovered a new open ended
700 m in diameter IP anomaly 1.5 kilometres to the north.


Despite the encouraging soil and rock geochemical results combined with the
expansion of a previously know I.P anomaly only 6 kilometres east of Imperial
Metals proposed East Zone Pit and only 500 m NW of their proposed tailing
storage facility no follow-up work has been completed on the property since
2004.


Given the geological similarities and proximity to the Red Chris deposit, the
presence of alkalic porphyry style alteration combined with indications of
copper-gold mineralization and limited but encouraging soil and rock
geochemistry, the Eldorado property is considered a highly prospective, but
poorly tested porphyry Cu-Au target.


Consideration for the Option includes aggregate cash payments of $200,000
($50,000 on signing) and exploration work commitments of $4,000,000 ($1,200,000
in year one), over a 3-year period to earn and initial 65% interest ("Initial
Interest"). Colorado may earn an additional 10% interest my making a further
cash payment of $1,000,000 (the "Additional Interest"). Upon Colorado acquiring
the Initial Interest, the parties will form a conventional joint venture which
will include the standard dilution clauses should either party dilute their
interest below 15% that party's interest will be reduced to a 1% NSR which can
be purchased in entirety for $2,000,000.


An underlying two per cent NSR royalty is reserved for the original vendors,
which may be purchased in entirety for $2,000,000.


"I have been working in the Red Chris area now for over 25 years and I am
thrilled to have the opportunity to aggressively explore this key property on
the doorstep of Imperial Metals Red Chris Property," said Adam Travis, Colorado
Resources Ltd. President and CEO.


To view the map accompanying this press release, please click on the following
link: http://media3.marketwire.com/docs/cxo104i.pdf


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

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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