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Colorado Achieves Significant Results from Inel Zone at KSP Property in British Columbia

COLORADO RESOURCES LTD. ("Colorado" or the "Company") announces the drilling progress at the Inel Zone on the KSP Property under option with Seabridge Gold Inc.

Since drilling commenced on June 19, 2016 a total of 37 drillholes (5,000 m) have been completed at Inel. The drillholes have begun to test a 0.15 square kilometre area (10%) of the 1.5 square kilometre Inel gold in soil anomaly (averaging 1.27 g/t Au).

Results have been received from the first 8 drillholes at Inel, approximately 20% of the drilling completed to date in the first 5,000 m phase. Significant results from these first 8 drillholes are noted in the following table:

Inel 2016 Drilling - Significant Gold Results
Hole ID Hole Length (m) From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Zn (%)
INDDH16-001 105 72.0 83.0 11.0 6.12 45.74 2.18
including 79.0 82.0 3.0 8.60 37.37 4.36
INDDH16-002 162 122.4 128.0 5.6 6.27 2.79 0.02
including 124.0 126.0 2.0 15.65 5.00 0.01
INDDH-003 129 31.0 33.0 2.0 18.70 2.40 0.14
and 103.0 111.0 8.0 9.99 14.25 0.12
including 103.0 105.0 2.0 24.10 35.60 0.09
INDDH16-004 165 58.0 59.0 1.0 10.20 20.70 2.60
and 117.0 118.0 1.0 15.70 33.30 2.75
INDDH16-005 150 143.0 143.7 0.7 13.65 91.10 0.59
INDDH16-006 150 25.6 31.0 5.4 5.70 10.11 1.53
including 25.6 27.0 1.4 13.70 24.00 3.16
INDDH16-007 99 30.0 31.0 1.0 5.57 4.60 1.14
INDDH16-008 150 52.0 54.0 2.0 8.70 11.90 0.81

To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/Inel_NewsRelease.pdf.

Adam Travis President and CEO of Colorado states: "What an incredible first month we have had up at KSP getting a jump start on the exploration season with one drill rig completing 5,000 m in 37 drillholes in just 30 days of drilling. All our employees and contractors are to be commended for some of the highest and safest productivity I have seen in my 30 year career. Results are starting to come in from the laboratory and already our first few holes are showing some very impressive assay results over 400 m of strike attesting to the strength of this large open ended and robust system, which we have barely scratched the surface of. We started work almost a month ahead of other explorers in the area so that we have lots of exploration season left to follow up on these very encouraging early results. With sufficient working capital on hand, we plan to keep drilling and are well on our way to earning majority control of one of British Columbia's best exploration projects".

Qualified Person

Greg Dawson P.Geo, the Company's Vice President of Exploration is the Qualified Person ("QP") as defined by National Instrument 43-101 that has reviewed and approved the technical content of this news release.

QA/QC Statement

The 2016 samples were analyzed by ALS Minerals of Vancouver, British Columbia. Base metal assays were first determined using the ME-ICP61 method, which reports results as parts per million (ppm). Any samples containing greater than 10,000 ppm zinc were analyzed by the Zn-OG62 method, which reports results as percent. Any samples containing greater than 100 ppm silver were analyzed by the Ag-OG62 method, which reports results as ppm. The gold assays were determined using the Au-ICP21 fire assay method which reports results in ppm and are equivalent to grams per tonne (g/t). Any samples returning greater than 10 ppm gold were analyzed by the Au-GRA21 fire assay method with a gravimetric finish. The analytical results were verified with the application of industry standard Quality Control and Quality Assurance (QA-QC) procedures.

For more information on the KSP Project the reader is directed to the Company's website at www.coloradoresources.com.

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