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Colorado Begins RC Drilling at Green Springs Property in Nevada

COLORADO RESOURCES LTD. ("Colorado" or the "Company") announces further to its news release of January 20, 2017 it has received the approvals from the Ely Ranger District of the United States Forest Service for the updated drill permits for the Green Springs Property and drilling has now commenced.

Colorado has contracted HD Drilling LLC out of Winnemucca for the RC drilling for the initial 4,000 ft phase which will consist of approximately 10 holes. The drill program has two principle goals:

  1. To test the nature of gold mineralization at the lower Chainmen Shale - Joana Limestone contact south of the historic mine workings and along the trend of a north-south striking structural corridor. This productive contact was exploited at the Green Spring mine where 1.1 million tons of rock averaged 2.1 g/t Au; and
  2. To test the nature of gold mineralization associated with the lower Pilot Shale - Guilmette Limestone contact. This contact is well exposed to the north and to the east of the mine workings and is associated with jasperoidal bodies which both historic RC boreholes and surface rock samples had demonstrated to be significantly gold mineralized. The Colorado RC program is designed to test both of these permissive stratigraphic and structural contacts over a combined strike length of approximately 3.0 km.

About Green Springs

The Green Springs Property is currently under option with Ely Gold & Minerals Inc. ("ELY") to acquire a 100% interest in 193 unpatented claims (1,416.2 hectares) held or under option by ELY and is located in the eastern Great Basin approximately 50 miles south of Kinross 's Bald Mountain/Alligator Ridge Mine and 35 miles west of Ely Nevada. It is a classic Carlin-style gold system that represents part of a growing number of Carlin-type systems and new discoveries located outside the main Carlin and Cortez camps in largely underexplored parts of Nevada.

Qualified Person

Dr. Jim Oliver, Ph.D, P. Geo., the Company's Chief Geoscientist, is the Qualified Person as defined by National Instrument 43-101 who reviewed the preparation of the technical data in this news release.

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