Mr. Nikolas Perrault reports

POSITIVE PRELIMINARY ECONOMIC ASSESSMENT FOR COLT'S 100% OWNED TABUACO TUNGSTEN PROJECT, NORTHERN PORTUGAL

Colt Resources Inc. has provided the results of a positive preliminary economic assessment (PEA) prepared by SRK Consulting (UK) Ltd. for the 100-per-cent Colt-owned Tabuaco tungsten project, located in Portugal. The final PEA report will be filed on SEDAR within 45 days. The PEA covers the Sao Pedro das Aguias (Tabuaco) tungsten deposit and the nearby Aveleira tungsten deposit, both located within the company's Tabuaco experimental mining licence (45 square kilometres).

Nikolas Perrault, chief executive officer and president of Colt, stated: "We are very pleased with the results of this PEA prepared by SRK. It demonstrates the potential to develop this project with positive economics. While initiating the feasibility study, Colt's next phase of work will include upgrading the inferred resources to indicated resources and identifying additional resources in close proximity to the known deposits."

Preliminary economic assessment summary

A PEA was prepared by SRK for Colt's 100-per-cent-owned Tabuaco tungsten project in Portugal. The PEA relied on NI 43-101-compliant indicated and inferred mineral resources as announced by Colt on Oct. 3, 2012.

The main conclusions from the PEA are shown on the attached table. All values are in U.S. dollars and the study assumes a $1.30-(U.S.)-to-euro exchange rate. A flat tungsten price of $400 (U.S.) per thousand thermal units W03 was used in the economic assessment. Capital and operating costs were derived from a combination of first principles and SRK's experience based on similar projects.

The conclusions and recommendations of the PEA are that the Tabuaco tungsten project may be economically viable and that further studies and fieldwork for this project are justified.

SRK notes that the economic assessment is preliminary in nature and the production schedules are inclusive of inferred classified mineral resources that are considered too geologically speculative to have economic considerations applied to them that would enable them to be classified as mineral reserves. There is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

SUMMARY OF PRELIMINARY ECONOMIC ASSESSMENT RESULTS FOR TABUAAPARAGRAPHO
 PROJECT, PORTUGAL: SRK CONSULTING (UK) LTD. 

                                    Units      Results
Production
Capital development
Lateral                               (m)         5,949
Vertical                              (m)           435
Waste mined                          (kt)           398
Production
Production rate                     (ktpa)          400
Ore mined and processed -- SPA       (kt)         2,582
                                   (% WO3)        0.37
Ore mined and processed -- avg.      (kt)           975
                                   (% WO3)        0.42
Ore mined and processed -- total     (kt)         3,557
                                   (% WO3)        0.39
Recovery                               %          90.25
Recovered metal                  (MTU EQ WO3) 1,240,482
Mine life                           (years)          12
Financial
Revenue                             (USDm)        496.2
Operating costs                     (USDm)       -244.6
Royalty                             (USDm)         -5.0
Operating profit                    (USDm)        246.6
Net operating profit                (USDm)        196.0
Capital expenditure                 (USDm)        -86.8
Cash flow                           (USDm)        109.2
Posttax reporting
NPV at 5%                           (USDm)         67.4
IRR                                   (%)          30.7
Cash cost                         (USD/tore)      70.17
                                 (USD/MTU WO3)   201.20

Metal price sensitivity analysis

The impact of a range of tungsten prices on the NPV 5 per cent for the project has been studied in the PEA and the results are reported in the attached table.

                TUNGSTEN PRICE SENSITIVITY ANALYSIS RESULTS

                                                   Base
               Unit                                case             
 
Metal price   USD/MTU    300    325    350   375    400    425     450     475  
NPV5%          USDm     3.61   9.63   5.55   1.5   67.4   83.3    99.2   115.2

Discount rate sensitivity analysis

The impact of a range of discount rates on the NPV for the project has been studied in the PEA and the results are reported in the attached table.

                          DISCOUNT RATE SENSITIVITY ANALYSIS RESULTS

                                           Base 
                  Unit                     case                             

Discount rate   USD/MTU     0.0%   2.5%    5.0%   7.5%   10.0%   12.5%   15.0%   17.5%   20.0%
NPV              USDm     109.2   85.8    67.4   52.7    41.0    31.7    24.1    17.9    12.9 

Several processing options were evaluated for the project and the economic assessment presented here is based on Colt's preferred base case, which uses ore sorting and an acid tungsten recovery process. It is noted that the planned trial mining will provide a bulk sample for further testwork to verify the flowsheet.

Project timeline and optimization efforts

The completion of this positive PEA is an important milestone in the continued development of the Tabuaco tungsten project.

Colt's projected timeline to advance the project includes the following milestones:

Fourth quarter 2014:  Completion of resource update/feasibility study

2015:  Full mine permitting

2015/2016:  Construction

2017:  Production

Colt intends to address several areas during the feasibility study so as to improve results included in the PEA. These will include:

• Mineral resources -- Colt will focus on upgrading of inferred resources to indicated resources and the identification of additional resources in close proximity to the known deposits. Colt is confident that the potential to increase resources through regional exploration is good. Exploration work will be directed toward identifying additional resources that will benefit the future mining operation.
• Trial mining -- Colt will develop an adit to the orebody to determine the geotechnical and mining conditions and to take a bulk sample for metallurgical testwork.
• Processing -- Colt will complete continuing testwork so as to finalize and optimize process flowsheets leading to final plant design. The study analyzed several options that will be further evaluated and finalized.
• Geotechnics -- Colt will perform additional geotechnical investigations designed to determine the ground support requirements.
• Environmental -- Work will continue to address the need to minimize the impact of the future mining project.
• Mining -- Capital and operating costs will be confirmed and addressed in detail to identify areas where improvements can be made so as to benefit the future economics of the project. The mine design will be updated based on the updated resources.

Jurgen Fuykschot, MSc, MBA, MAusIMM (CP), principal consultant (mining engineering), SRK Consulting (UK) Ltd., is the independent qualified person, as defined in NI 43-101, for the Tabuaco preliminary economic assessment. Mr. Fuykschot has reviewed the content of this press release and consents to the information provided in the form and context in which it appears.

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