Colt Resources Receives Positive Drilling Results at Tabuaço Tungsten Project

Colt Resources Inc. ("Colt" or the "Company") is pleased to announce that it has received positive metallurgical results from testwork performed on representative samples taken from the Tabuaço Tungsten Project (São Pedro das Águias), as well as results for eleven holes from its exploration drilling campaign at the nearby Tabuaço-Aveleira gap, Aveleira and Quinta targets, all located in the Armamar‐Meda concession in northern Portugal.  Colt is awaiting final approval for the "Tabuaço" Trial Mining License, expected to be granted later in Q1, 2013, which will include the deposits reported to date together with the surrounding area believed to host the most significant upside potential.

As part of its ongoing efforts to advance the Tabuaço deposit towards production, the Company had previously submitted a 522 kilogram representative sample of metallurgical drill core to a Chinese metallurgical services provider for process testing. A final report of this investigation has been issued by the Chinese metallurgical services provider, demonstrating a process flowsheet that includes flotation followed by acid leaching achieved 87.2% overall tungsten recovery into a final concentrate containing 70.65% WO3 from an ore sample containing 0.64% WO3. The Company is very pleased with the results of this test work as it demonstrates a high tungsten recovery, by world standards, into a premium grade scheelite concentrate. The Company plans to conduct pilot mill testing on approximately 20 metric tons of ore from Tabuaço later this year. The Company also intends to investigate further the potential production of fluorite concentrate as a possible by-product from the deposit.

Nikolas Perrault , President and CEO of Colt, stated, "These final metallurgical test results further demonstrate the potential to develop a successful tungsten mining operation at Tabuaço.  Our work to complete a preliminary economic assessment (PEA) has commenced and we intend to conclude this work during the second quarter. Discussions are currently ongoing and advancing as we continue our efforts to identify a suitable joint venture partner for Tabuaço so as to deliver on our promise to focus on our gold projects while maintaining the full benefits of part ownership of a solid revenue generating asset with lots of blue-sky."

Mr. Perrault continued, "Our exploration work designed to test the upside potential of this area continues to yield positive results.  Our geological team has identified several zones of mineralization based on mapping and geochemistry and these results confirm that our predictive model is robust".

Colt is pleased to announce the following results from our ongoing exploration drill program to test extensions of the previously reported resources at the Tabuaço and Aveleira deposits.

Drilling Summary:

Holes DHT-79, -80, -81, -86 and -87 were all drilled at the Aveleira skarn tungsten deposit, first discovered by Colt through drilling in February 2012.  DHT-79 was drilled 64 metres East-Northeast (down-slope) from mineralized hole DHT-71. It only intersected the Lower skarn horizon, while the Main (Upper) skarn horizon is believed to have been eroded away at this low topographic level.  Vertical holes DHT-80 and -81 were collared as to test depth extensions into the mountain West-Southwest of the first line of holes drilled at Aveleira, namely at around 70 to 85 metres from mineralized holes DHT-53, -70 and -71 respectively. Both holes DHT-80 and -81 intersected mineralized horizons.  Inclined holes DHT-86 and DHT-87 were drilled in order to target skarn mineralization occurring in the intervals between DHT-70/DHT-81 and DHT-71/DHT-85 respectively. Both holes intersected mineralization, as shown above in Table 1.

With these holes, Colt has mostly outlined the lateral limits of the Aveleira deposit, which seems therefore not to extend much at depth into the mountain. Future drilling at Aveleira will therefore consist essentially of infill grid drilling in order to allow outlining of an indicated resource.

Holes DHT-77, 78 and 88 were all drilled in the Gap between Tabuaço (São Pedro das Águias) and Aveleira skarn tungsten deposits, where Colt first discovered concealed tungsten skarns through drilling in July 2012.  DHT-77 was drilled roughly half-way between mineralized hole DHT-75 and barren hole DHT-73, having confirmed a further 60m northerly extension of the mineralization previously intersected by DHT-75. Drill hole DHT-78 was positioned 80m due South from DHT-72 (the discovery hole in the Gap) having confirmed a southerly extension of the Gap skarns to as close as 40m with regards to the São Pedro das Águias resource area.  DHT-88 was drilled a further 80 metres NW of DHT-83, and proved to be the best mineralized hole drilled thus far in the Gap, with two distinct and well separated, thick and richly mineralized skarn horizons, much like at the São Pedro das Águias deposit and the best portions of the Aveleira deposit.

The skarn tungsten mineralization found by Colt in the Gap between the São Pedro das Águias and Aveleira deposits, and tested so far by a total of seven diamond drill holes (five mineralized and two barren), extends for a Northwest-Southeast strike extent of 275 metres, and a yet unknown lateral (down-dip) extent into the mountain and underneath the outcropping granite. The fact that the last (North westernmost) hole drilled in this zone turned out to be the best mineralized hole leaves open good potential for finding further significant mineralization, once drilling is resumed to test the Northwest extent of this skarn zone. This untested area comprises the >300 metre zone between DHT-88 and the Aveleira deposit.

Holes DHQ-01, -02 and -03 were drilled at the Quintã zone NW of the Aveleira deposit, to test for depth extents of the skarn tungsten mineralization previously mapped and sampled on outcrop at the southern slope beneath the Quintã village. All these three holes were collared on the same approximate location, at around 225 metres NNW of the Quintã skarn tungsten outcrop, however were drilled with distinct orientations.  DHQ-01 (-45o) aimed at the Quintã skarn outcrop with a bearing of N160o, but it failed to intersect thick and well mineralized skarns as shown in the outcrop, but rather a number of narrower skarn horizons.  DHQ-02 (-45o) was oriented to bearing N200o, in order to test a possible westerly deviation of the skarn from the Quintã outcrop; in fact it had two skarn intercepts but with modest grades (<0.2% WO3).  DHQ-03 (vertical) again intersected a number of narrow and poorly mineralized skarn horizons.

This first drilling ever carried out at Quintã therefore failed to confirm a significant depth extension of the thick and rich skarn tungsten outcrop into the mountain. The acquired drilling and surface data will need to be re-assessed in order to guide future exploration drilling, perhaps closer to the outcrop and/or further to the West underneath the granite.

Results from DHT-88 show that the discovery area is not closed off to the north-west and initial results of drilling suggest the potential for mineralization to extend beyond the previous reported resource area (Press Release - September 5, 2012).  Drilling down-dip is also planned to test the contact relationship between the mineralized skarns and the granite located to the south-west of Tabuaço (São Pedro das Águias).

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