Mr. Adam Travis reports

COLORADO ANNOUNCES NON-BROKERED FLOW-THROUGH FINANCING

Colorado Resources Ltd. is undertaking a non-brokered private placement for an aggregate of $750,000 for three million common shares of the company that qualify as flow-through shares for purposes of the Income Tax Act (Canada) at an issue price of 25 cents per flow-through unit.

Each flow-through unit will consist of one flow-through common share in the capital of the company and one-half of one non-transferable non-flow-through common share purchase warrant. Each non-flow-through warrant will entitle the holder thereof to purchase one additional common share of the company at an exercise price of 40 cents per non-flow-through warrant share for a period of 12 months from the closing date.

The offering is being offered on a non-brokered private-placement basis in the provinces of Alberta, British Columbia and Ontario, as well as such other jurisdictions as the company may determine in its sole discretion, and will be subject to a statutory hold period of four months and a day from the closing date of the offering. The company may pay finders' fees in accordance with the rules and policies of the exchange. The offering remains subject to the approval of the exchange. The proceeds will be used by the company for exploration activities on it Canadian properties.

About Colorado Resources

Colorado's current exploration focus is to continue to advance the KSP property, currently under option with Seabridge Gold Inc., located 15 kilometres along strike to the southeast of the past-producing Snip mine; its 100-per-cent-owned Kingpin property; its 100-per-cent-owned North Rok property, located 15 kilometres northwest of the Red Chris mine development, both located in north-central British Columbia; and the Greensprings property in Nevada, currently under option from Ely Gold and Minerals Inc.

We seek Safe Harbor.