Mr. Adam Travis reports

COLORADO ANNOUNCES NON-BROKERED FINANCING FOR UP TO $5M

Colorado Resources Ltd. is undertaking a non-brokered private placement comprising four million units of the company at an issue price of 32 cents per unit and nine million flow-through (FT) units at an issue price of 42 cents per flow-through unit for aggregate gross proceeds of $5.06-million.

Each unit will consist of one common share in the capital of the company and one-half of one non-transferable common share purchase warrant, with each warrant entitling the holder thereof to acquire an additional common share at an exercise price of 50 cents for 30 months after the date of issuance.

Each flow-through unit will consist of one flow-through common share of the company that qualifies as a flow-through share for purposes of the Income Tax Act (Canada) and one-half of one non-transferable non-flow-through (NFT) common share purchase warrant. Each NFT warrant will entitle the holder thereof to purchase one additional common share of the company at an exercise price of 50 cents per NFT warrant share for a period of 30 months from the closing date.

The company may pay finders' fees in accordance with the rules and policies of the TSX Venture Exchange. The offering remains subject to the approval of the exchange. All securities issued in the offering will be subject to a statutory hold period of four months and a day from the closing date of the offering.

The company intends to expend the proceeds from the flow-through units for exploration on the company's Canadian properties, and the proceeds from the units will be for general working capital purposes.

About Colorado Resources Ltd.

Colorado Resources is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and Nevada. Its main B.C. exploration projects include the KSP property currently under option with Seabridge Gold Inc., the 100-per-cent-owned Kingpin property and the 100-per-cent-owned North ROK property. Additionally, Colorado Resources holds an option on the Green Springs property (Nevada) from Ely Gold & Minerals Inc.

We seek Safe Harbor.