• TSX.V: CXO

News Releases

COLORADO RESOURCES LTD. (“Colorado” or the “Company”) is pleased to announce it has completed its initial public offering (the “Offering”) of 5,000,000 units (the “Units”) at a price of $0.40 per Unit. Each Unit consists of one common share and one-half of one nontransferrable common share purchase warrant (the “Warrants”), for gross proceeds of $2,000,000. Each whole Warrant entitles the holder thereof to purchase one additional common share for a period of 24 months from closing of the Offering (the “Closing”) at an exercise price of $0.60 per Warrant.

Canaccord Genuity Corp. (the “Agent”) has been paid a commission of 8% of the gross proceeds payable as partly in cash and through the issuance of 161,924 units, (the “Agent’s Commission Units”) and granted warrants (the “Agent’s Warrants”) equal to 10% of the number of Units sold under the Offering. The Agent’s Warrants entitle the Agent to purchase 500,000 common shares at an exercise price of $0.40 per common share, for a period of 24 months from Closing. Of the Agent’s Warrants, 30,386 are subject to a 4- month hold period expiring on March 2, 2011. The Company also paid the Agent a corporate finance fee of $30,000 and 25,000 Units (the “Corporate Finance Units”). The Agent’s Commission Units and the Corporate Finance Units have the same terms as the Units.

The Company further advises it has received approval from the TSX Venture Exchange that its shares will be listed for trading on Wednesday, November 4, 2010 under the trading symbol “CXO” as a Tier 2 Venture Issuer.

About Colorado

Colorado is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and the Yukon and is also aggressively seeking properties in Latin America. Colorado’s primary focus is on the Hit Property located in the Similkameen Mining Division of British Columbia, which it has the option to acquire a 100% interest.

ON BEHALF OF THE BOARD OF DIRECTORS OF
COLORADO RESOURCES LTD.
Adam Travis
Adam Travis
President and Chief Executive Officer

For more information, please contact:

Colorado Resources Ltd.
Adam Travis, President and Chief Executive Officer or
Terese Gieselman, Chief Financial Officer and Secretary
T: (250) 768-1511
F: (250) 768-0020
W: www.coloradoresources.com
NR 10-01

The securities referred to in this news release have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or applicable state securities laws, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within any jurisdiction, including the United States.

Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding proposed exploration activities. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company’s equity securities, the state of the market for gold or other minerals that may be produced generally, recent market volatility; variations in the nature, quality and quantity of any mineral deposits that may be located, the Company’s ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company’s prospectus dated September 16, 2010 for a more complete discussion of such risk factors and their potential effects, a copy of which may be accessed through the Company’s page on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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