Colossus Minerals Updates Progress at Serra Pelada Gold-Platinum-Palladium Mine

Colossus Minerals Inc. (the "Company" or "Colossus") is pleased to provide a development update for its 75% owned Serra Pelada gold-platinum-palladium Mine. The Serra Pelada Mine is a joint venture between Colossus and Cooperativa de Mineração dos Garimpeiros de Serra Pelada ("COOMIGASP") located in the State of Pará, Brazil.

HIGHLIGHTS

• The Company remains on track for initial production in the third quarter of 2013 at a rate of 250 tonnes per day ("tpd"). Ramp-up plans indicate 1,000 tpd is achievable by the end of the first quarter of 2014.
• Given that the process plant will be available in August, the Company has decided to process the bulk sample on site.
• The Company has encountered potential mineralization 30 to 40 metres ahead of the expected start of the Central Mineralized Zone ("CMZ"). Preliminary assay results indicate the potential for a lower-grade halo. Full results will be released once complete assays are received and analyzed.
• Ground conditions have been better than expected. Consequently, the Company is currently evaluating a number of different mining methods. Preliminary results from this geotechnical evaluation indicate that a more cost effective alternative to underhand-cut-and-fill, such as overhand-cut-and-fill, may be achievable in certain sections of the mineralization.
• Due to the existence of potential new mineralization, the evaluation of different mining methods and the Company's ability to process on-site, management has decided to expand the size of the planned 1,500 tonne bulk-sample. The Company will provide further details once planning is finalized.
• The construction team is expected to turn over the process plant to the operating team by the end of July. The total project is currently 80% complete with 95% of concrete having been poured and civil construction now in its final phases. The civil contractor is now 50% demobilized with the remaining focus on completion of the gold room. Structural steel erection is 35% complete and installation of tanks and principle equipment is well underway.
• Underground development currently totals 1,950 metres and the Company has averaged 3.1 metres per day since the beginning of April. An additional 1,750 metres of development is necessary to achieve a processing rate of 1,000 tpd by the end of the first quarter of 2014. Management plans to complete this development between August 2013 and March 2014 and is assuming conservative daily development rates of 2.5 metres per day from each of four development crews.
• Other infrastructure development remains on schedule. Commissioning of the power house has commenced and the site should be connected to the grid before the end of June. The tailings dam is expected to be ready in conjunction with the start of mill commissioning.

Claudio Mancuso, Chief Executive Officer commented, "We are now past the peak construction period on site and we remain focused on building the mill at Serra Pelada and developing the mine and its infrastructure in a safe and cost-effective manner. While still early, we are excited about the new zone of mineralization encountered ahead of the CMZ and believe the on-site processing of the bulk sample will provide additional benefits and insight for the commencement of production. I am pleased and encouraged with the progress to date and the entire Colossus team is excited to be on track to becoming the industry's next gold producer."