CXO Colorado Resources Ltd

COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is
pleased to announce that it has received final results from the 2012 exploration
program on its Oro Property. 


The Oro Property, covering approximately 36,000 hectares, is located in the
mineral-rich MacMillan Pass area of the Yukon Territory. Nearby and adjacent
properties are owned by Newmont, HudBay, Teck, Carlin-Constantine, Golden
Predator and Ryan Gold. The property was originally acquired due to its
favourable geological setting along the Yukon "Carlin Gold" Trend which also
hosts ATAC's Rau, Osiris and Tiger Zones. The Oro Property hosts the historic
Neve Minfile occurrence which contains orpiment and realgar mineralization,
previous drill results up to 0.50 g/t Au over 65.9 metres and has documented
comparisons to Nevada's Carlin belt.


Work completed in 2012, which focused on following-up and further defining
numerous geochemical anomalies identified during the 2011 exploration season,
consisted of:




--  the collection of 5,351 soil samples, 
--  the collection of 722 rock samples, 
--  the completion of detailed geologic mapping over a 70 square kilometer
    area.



Since 2011, the Company has spent over $4,000,000 conducting systematic and
progressive exploration on the Oro Property. This work has resulted in the
collection of nearly 19,000 soil samples, over 1,900 rock samples, over 2,000
line kilometers of airborne geophysical data, the excavation of 15 trenches and
the completion of detailed property scale geologic mapping. Using the extensive
geochemical database generated by this work, combined with the property scale
mapping and structural interpretation, the Company has identified the following
high priority target zones and areas: 


Oro Main Zone (includes the J.O., Saddle, Canol Zones and historic Neve Minfile
occurrence) 


Geochemical survey results from the 2011 and 2012 exploration programs have
significantly expanded an anomalous gold occurrence that was previously defined
over a 500 m x 800 m area to an 800 x 4,000 metre zone, the Oro Main Zone, of
anomalous multi-element soil geochemistry. The northwest strike extension of the
Oro Main Zone is masked by glacial overburden.


The geological understanding of the Oro Main Zone was greatly advanced in 2012
through the work of Dr. Jim Oliver. Two strong structures controlling
mineralization have been identified through geological mapping and airborne
geophysics and traced over a length in excess of 10 kilometres.


Within the Oro Main Zone, the soil geochemical anomalies are represented by
greater than 95th percentile multi-element gold (greater than 21.4 ppb), silver
(greater than 3.3 ppm), arsenic (greater than 126.5 ppm), antimony (greater than
22.7 ppm) and thallium (greater than 1.7 ppm) values. Within this large zone,
anomalous values range up to 1,490 ppb gold, 19 ppm silver, 4,291 ppm arsenic,
200 ppm antimony and 12 ppm thallium.


Golden Ridge - Golden Hinge Zones

The Golden Ridge-Golden Hinge Zones are located approximately 3 kilometres east
of the Oro Main Zone and occur within a 2 x 9 kilometre area of elevated silver
values in soil geochemistry. Regional geological mapping indicates that the area
hosting the Golden Ridge - Golden Hinge Zones is associated with a regional
thrust fault and a greater than 10 kilometre long ankeritic alteration zone
within a chert pebble conglomerate unit.


Large sections of the Golden Ridge - Golden Hinge Zones grade greater than 98th
percentile silver (greater than 5.2 ppm). Localized greater than 98th percentile
gold (greater than 42.7 ppb) and arsenic values (greater than 257.2 ppm)
accompany elevated silver values over an area measuring 250 x 1,500 metres.
Bounding the silver anomaly to the north is a sub-parallel 600 x 5,000 metre
greater than 5 ppm thallium soil geochemical anomaly.


Limey Ridge Zone

The Limey Ridge Zone is located approximately 3.5 kilometres northwest of the
Oro Main Zone and occurs in the structural footwall quartzite units to the
Cariboo Pass Formation limestone. The quartzite is strongly quartz veined with
significant iron carbonate alteration and is considered to be very permissive
for the development of bulk tonnage gold mineralization. The veined quartzite is
coincident with a 300 x 400 metre multi-element geochemical anomaly defined by
greater than 98th percentile gold (greater than 42.7 ppb), arsenic (greater than
126.5 ppm) and antimony (greater than 42 ppm) values. Within this cohesive
anomaly, values range from greater than 95th percentile values up to 1,112 ppb
gold and 534 ppm arsenic. Interestingly, there is no anomalous silver in this
zone.


Twin Zone 

The Twin Zone consists of two sub-parallel thallium soil geochemical anomalies
which trend to the west from the Oro Main Zone along geologically mapped
structural breaks. The northernmost anomaly measures 400 x 3,300 metres in size
and the southernmost, 350 x 2,100 metres. The latter is accompanied by a 250 x
1,000 metre greater than 95th percentile silver (greater than 3.3 ppm to 20.1
ppm) anomaly. Both anomalous areas contain core thallium values of over 15 ppm.
Thallium is a pathfinder element commonly associated with gold mineralization in
the Carlin district in Nevada.


Area 51 

Area 51 is located approximately 15 kilometres southeast of the Oro Main Zone in
the southeastern corner of the Oro Property. It measures 300 x 2,200 metres with
greater than 95t h  percentile antimony (greater than 22.7 ppm to 620 ppm) and
arsenic (greater than 126.5 ppm to 9,194.7 ppm) values and spotty gold values up
to 1,530 ppb gold, all in soil geochemistry.


Fire Assay versus ICP-MS Gold Values

Gold geochemical values as previously discussed are those obtained by Acme
Analyticals ICP-MS (Induced Coupled Plasma with Mass Spectrometer finish) method
which provides a cost effective exploration process for anomaly identification.
During 2012, a total of 5,912 soil samples (or 31% of the 18,999 soil samples
taken on the Oro Property to date) were also analysed by the fire assay method. 


A comparison of the results from the fire assay versus ICP-MS method for these
5,912 soil samples showed that the fire assay method increased the average gold
values in soils by 92% (from an average of 42.7 ppb for the 98th percentile
value to 82.0 ppb), a near doubling of the average grade of the soil anomalies.
As the fire assay method has not been used to analyze all soil samples taken to
date, the Company has reported ICP-MS gold values for all zones and areas on the
Oro Property.


Summary 

The Company's systematic exploration work completed in 2011 and 2012 has defined
several strong, drill ready, multi-kilometre long geological, geochemical and
geophysical targets on the Oro Property. Based on these very encouraging
results, a significant drill program is planned for 2013.


Qualified Person 

Mr. Greg Dawson, P.Geo. is the Qualified Person as defined by National
Instrument 43-101 who supervised the preparation of the technical data in this
news release.


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.


To view the maps accompanying this press release please click on the following
link: http://media3.marketwire.com/docs/CXOMaps1018.pdf

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