Colt Resources Inc. (COLTF)

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Colt Resources Inc. Announces NI 43-101 Technical Report on Exploration of the Montemor Gold Project in Southern Portugal

Colt Resources Inc. (“Colt” or the “Company”) (TSXV: GTP) (FSE: P01) (OTCQX: COLTF) is pleased to announce today that the NI 43-101 Technical Report on Exploration of the Montemor Gold Project prepared by SRK Consulting (U.S.), Inc. (“SRK”) in collaboration with SRK Exploration Services (“SRK ES”) has been filed on SEDAR. The full text of the report will also be available on the Company’s website, www.coltresources.com

Property Description and Location
The Montemor Project is located in the Alentejo Region of Portugal, approximately 100km east of the city of Lisbon, near the town of Santiago do Escoural. The project is centered at the UTM coordinates of 569,419E, 4,270,860N, within the WGS84 Zone 29N system. The Project is accessed via highway (A6 motorway) and secondary paved roads from Lisbon. The current license area (Boa Fé experimental mining license, or Boa Fé license area) encompasses 46.8km2, with an additional 732.611 km2 of exploration concession (Montemor exploration concession) staked surrounding the Boa Fé license area. Both licenses are currently in the approval process by the Portuguese mining authorities.

Conclusions and Recommendations of the Report: Conclusions
The Montemor exploration concession is a prospective area containing historical resource estimates that range from >150koz to 550koz Au, as defined over the period 1991-2008, comprising five separate deposits. Through a combination of resource expansion on the existing experimental license area, and regional exploration along the defined shear zone in the Montemor exploration area currently under application, SRK is of the opinion that the potential exists to expand this historical resource to a range of 8-12Mt, grading an average of 2.5-3.0 g/t Au grade above a potentially economic cut-off, contained in a series of small open pit and underground deposits.
Exploration on the Boa Fé experimental license area of Montemor is extensive, but only at shallow depths (60-80m), and has not had modern geophysical methods applied to it. The much larger exploration concession currently under application appears to hold significant potential, given the postulated extension of the currently defined Boa Fé shear zone in the experimental mining license area. Therefore, the potential to extend both the strike length and down-dip extension of known mineralized zones, as well as the discovery of new host structures and potential mineralized zones beneath cover exists.
Initial metallurgical testwork has demonstrated that gold is readily recoverable from Montemor mineralized material using a combination of gravity, flotation and cyanidation technologies. A likely processing strategy would be onsite gold recovery into gravity and flotation concentrates that could be transported offsite for regrinding and cyanidation to recover the gold as a final doré product. SRK recommends additional process amenability testwork, which would include assessment of alternative processing technologies to alleviate the issues of arsenic recovery and disposal.

Recommendations
SRK recommends that Colt conducts a regional exploration program on the larger exploration concession area to identify continuations of known structure and mineralization and to locate and prove up previously unknown buried targets within the Project area. This work will initially involve an historical data compilation and review, detailed regional structural studies and preliminary target generation and ranking. This will then be followed by the design of an appropriate field program for each regional target identified. These programs will involve multi-element geochemistry, detailed ground geophysics and detailed structural analysis to identify and rank five to six quality targets for drilling by the third quarter of 2011.
SRK also recommends that Colt conduct a comprehensive resource expansion program across the known mineralized targets on award of the experimental mining license, targeting extension of mineralization both along strike and at depth. The work will involve detailed 3D structural interpretation, as well as targeted infill and step-out drilling programs to confirm existing results and expand known mineralized zones. Additional verification drilling and modeling of historical drilling and updating of resource estimates would also form part of this work and an NI 43-101 compliant resource report would be produced.
Additional metallurgical studies should be conducted to more fully define ore processing parameters once the resource is more fully defined. Emphasis should be placed on the off-site processing strategies for recovery of gold from the gravity and sulfide flotation concentrates. This work should fully consider the disposal strategies for the residues from off-site processing, with particular emphasis on the safe handling of the arsenic contained in these residues.
“We are very pleased with this initial review of the vast amount of historical data obtained with the acquisition of this project. Colt’s team looks forward to working closely with SRK Exploration Services in the design and execution of an extensive exploration strategy aimed at unlocking the exceptional potential we feel exists on the Boa Fe shear zone. It seems that historical work has only focused on a small portion of what appears to be a significant regional system.” commented Nikolas Perrault, President and CEO of Colt.

The technical portions of this news release have been prepared and approved by Jeffrey Volk, Eric Olin and Anthony Gareth O’Donovan of SRK Consulting (U.S.) Inc., all qualified persons as defined by National Instrument 43-101.

About Colt Resources Inc.
Colt Resources Inc. is a Canadian junior exploration company engaged in acquiring, exploring, and developing mineral properties with an emphasis on gold and tungsten. It is currently focused on advanced stage exploration projects in Portugal, where it is the second largest lease holder of mineral concessions.
In addition to the Tabuaço tungsten project located on the Company’s 100% owned Armamar-Meda concession in northern Portugal, Colt holds gold and base metal properties in Portugal.
Colt is presently 51% owner and operator of the advanced stage Montemor gold project located in southern Portugal for which it is currently in the process of obtaining an Experimental Mining License with the Direcção-
Geral de Energia e Geologia, a division of the Portuguese Ministry of Economy and Innovation. Colt is on a clear path to 100% ownership of this project (see: August 10, 2010 press release and October 13, 2010 press release).