CXO Colorado Resources Ltd

COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is
pleased to announce the results of a 24 line kilometre deep sensing Induced
Polarization Survey on the Eldorado Property, Red Chris Area northern British
Columbia. 


As announced on October 4, 2012 Colorado 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 Imperial
Metals Red Chris Cu-Au deposit which is in the mine construction phase. 


Previous work on the property outlined anomalous copper and gold in soils over a
500 m x 1000 m area and shallow induced polarization (IP) anomalies associated
with an east west trending ridge and some of the only outcrop exposure noted on
the property. Four short holes were drilled in 1980 (totalling 640.4 m) to test
the IP anomalies. These holes encountered distal porphyry style mineralization
and alteration with 3 metre intersections grading up to 0.23% copper and 0.79
g/t Au. Subsequent geophysical and geological work in 2004 in an area up to 1.5
kilometres to the east of the 1980 drilling returned modest anomalies but no
further work was completed. In 2007 approximately 20 line kilometres of line
cutting were completed however a proposed geophysical survey was not conducted. 


Colorado staff recognized that previous exploration had only tested the Eldorado
property to shallow (less than 100 m) depths. Given the experience at Red Chris
in 2007 where a drill hole (Hole 07-335) targeting a deep I.P anomaly returned
1.01 % copper, 1.26 g/t gold and 3.92 g/t silver over 1024.1 m down the core of
the mineralized system, Colorado elected to conduct a deep survey on the lines
previously cut in 2007. 


The 24 line km I.P survey was completed by Peter E. Walcott and Associates and
consisted of 200 m dipole spacing with the ability to measure to 500 metre
depths. This survey indicates a 1400 m x 2000 m moderate (greater than 10 mv)
chargeability anomaly with two discrete shallow zones in the north central
portion that were the focus of the 1980's drilling, but more importantly, shows
a 500 m x 2000 m strong (greater than 15 mv) chargeability anomaly in the south
that was not detected by previous surveys and has never been tested. 


The Company is encouraged by the fact that there is a sizeable (500 m x2000 m)
untested induced polarization anomaly located in a broad valley under cover in a
similar geological setting only 7 kilometres east of Imperial Metals Red Chris
deposit. The geophysical anomaly is similar in size, shape and strength to
geophysical anomalies with associated mineralized bodies at both NGEx's GJ
Property and Imperial Metals Red Chris Property. Highly anomalous copper and
gold in soils located by previous work near the only outcrop on the property on
the periphery of this geophysical anomaly also indicate that this sulphide
system has the potential to carry anomalous copper and gold values. 


The Company is well financed and has submitted exploration drill permits and
plans to commence drilling as soon as permitting and weather allow. 


"I have been working in the Red Chris area now for over 25 years and am
confident that this untested geophysical anomaly is one of the better alkalic
copper gold porphyry drill targets I have seen given its location and geological
setting next door to Red Chris," said Adam Travis, Colorado Resources Ltd
President and CEO.


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 quality properties in
the US southwest and Latin America. 


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 figure associated with this press release, please visit the
following link: http://media3.marketwire.com/docs/CXOFigure1210.pdf 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Colorado Resources Ltd.
Adam Travis
President and Chief Executive Officer
(250) 768-1511
(250) 768-0020 (FAX)


Colorado Resources Ltd.
Terese Gieselman
Chief Financial Officer and Secretary
(250) 768-1511
(250) 768-0020 (FAX)
www.coloradoresources.com

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