CXO Colorado Resources Ltd

COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is
pleased to announce the results of its 2012 exploration program on its 100%
owned 14,396 hectare Heart Peaks Property located in northern British Columbia
45 kilometres northeast of the past producing Golden Bear Mine.


Work completed on the Heart Peaks property to date in 2012 includes:



--  The collection of 407 rock samples 
--  The collection of 2427 soil samples 
--  The collection of 202 samples for TerraSpec infrared analysis to
    identify alteration mineralogy 
--  Detailed geologic mapping 
--  34 kilometres of line cutting 
--  13 kilometres of Induced Polarization geophysical surveying



Summary of Results

The exploration work completed to date by the Company demonstrates that the gold
and silver mineralization found at Heart Peaks occurs at a very high level
within a large and deep rooted epithermal system. Gold values in surface grab
samples as high as 126 g/t gold indicate there is very good potential to find
high grade mineralization at shallow to moderate depths at Heart Peaks.
Historical drill testing, which returned intersections of up to 0.51 g/t gold
over 115 metres in drillhole 84-4, also convincingly demonstrates that the Heart
Peaks hydrothermal system is robust enough to generate broad zones of
lithologically controlled bulk tonnage style gold mineralized targets. 


The Heart Peaks Property

Heart Peaks is one of several young volcanic centres identified in north and
north-central British Columbia. Of these many volcanic centres, Heart Peaks is
exceptional in that significant gold and silver mineralized zones are developed
within an area of intense epithermal alteration which exceeds 10 square
kilometres. 


At least three significant shallow dipping felsic volcanic sequences
characterize the Heart Peaks felsic volcanic complex. Massive coherent flow
sequences are often capped by heterolithic debris flows. Broad gold mineralized
zones, with up to 0.51 g/t gold over 115 metres in historic drill core, are
associated with the contacts between heterolithic debris flows and
hydrothermally brecciated, competent felsic flows. These contacts represent
internal unconformities, which in similar global environments, e.g. Pascua Lama
in Peru (proven and probable reserves of 17.9 million ounces of gold and 676
million ounces of silver), may have a strong spatial association with the
development thick panels of gold mineralized rock.


Bladed quartz-sericite-adularia veins occur in the felsic flows at the base of
the volcanic section and likely represent zones of maximum fluid up-flow. These
veins locally contain high grade gold mineralization at the historically known
Quartz Hill and Top Zones. Grab sampling by the Company in 2011 returned values
up to 31.6 g/t gold and 4,282 g/t silver from these zones. 


In 2011 the Company discovered a new zone of gold mineralization 1,200 metres
east of the Top Zone called the Midas Zone. At the Midas Zone, gold
mineralization has been identified within an east-west trending quartz vein zone
which, based on rubble fragments and soil-talus fines geochemistry, has a strike
length of at least 200 metres. The surface on-strike expression of this vein
system is obscured to the east beneath surficial cover. Three of only five
samples collected from the Midas zone in 2011 returned values of 4.7 g/t, 8.5
g/t and 10.4 g/t gold, with 23 g/t, 60 g/t and 32 g/t silver, respectively.


2012 Exploration Highlights

Prospecting by the Company at the Midas Zone in 2012 discovered grab samples
with visible gold that returned values up to 126 g/t gold. Precious metal values
from 55 rock samples collected over a 100 by 200 metre area at the Midas Zone
ranged from 0.035 g/t to 126 g/t gold and 0.6 g/t to 338 g/t silver. The average
value for these samples was 3.6 g/t gold and 22.4 g/t silver.


The 2012 soil sampling program identified several areas of significant gold -
silver mineralization that require follow-up. The largest gold geochemical
anomaly, defined by the 95th percentile (170 ppb) gold value, is 200 to 300
metres wide and extends north from the Top Zone for 1300 metres. The southern
600 metres of this gold anomaly is also coincident with anomalies defined by the
98th percentile silver and and 95th arsenic values (6 ppm and 900 ppm
respectively).


The Midas Zone, which has returned the highest gold in rock samples on the
property to date, is defined by a 200 by 50 metre east-west trending 95th
percentile (170 ppb) gold and 90th percentile (3 ppm) silver soil geochemical
anomaly. This anomaly is contained within a 200 metre by 50 to 100 metre wide
98th percentile (greater than 1200 ppm) arsenic anomaly. 


The alteration pattern identified by TerraSpec analysis at Heart Peaks is
dominated by kaolinite and illite, with moderate alunite and jarosite. Such a
pattern is consistent with the shallow-level advanced argillic alteration
blanket (kaolinite-alunite) and clay halo typically found in a gold mineralized
low-sulphidation epithermal system.


The IP surveying program started late in the season and was terminated before
the survey was complete due to the onset of winter conditions. The survey was
successful in providing third dimension structural information that will be
useful in locating drill targets for the 2013 exploration season. 


The IP survey also demonstrated that the Top and Quartz Hill Zones are underlain
by a very strong chargeability and resistivity anomalies. The IP anomalies
extend to depth for at least 300 m and are coincident with the gold soil anomaly
identified at the Top Zone. The high chargeability could be indicating the
presence of sulfide mineralization while the highly resistive response is likely
reflecting strong silicification of the underlying rocks. Both of these features
are typical indicators of gold mineralized epithermal systems.


Adam Travis, Colorado Resources President & CEO states, "The Company is very
pleased with the results of its systematic exploration program at Heart Peaks.
The work completed in 2012 has clarified our understanding of the controls on
gold and silver mineralization on the property and has provided us with the
information we need to plan a minimum 2500 m drilling program at Heart Peaks for
the 2013 exploration season." 


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.


To view the map accompanying this press release, click on the following link:
http://media3.marketwire.com/docs/c1025m.pdf


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

Adam Travis, President and Chief Executive Officer

NR 12-09

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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Colorado Resources Ltd.
Adam Travis
President and Chief Executive Officer
(250) 768-1511 or Toll Free: 1 (855) 768-1511


Colorado Resources Ltd.
Terese Gieselman
Chief Financial Officer and Secretary
(250) 768-1511 or Toll Free: 1 (855) 768-1511
(250) 768-0849 (FAX)
www.coloradoresources.com

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