Mr. Richard Quesnel reports

COLT RESOURCES' MIDDLE EAST AFFILIATE ENTERS INTO AN EXCLUSIVITY AGREEMENT FOR CHAGAI HILLS EXPLORATION LICENSES IN BALOCHISTAN, PAKISTAN

Colt Resources Inc.'s affiliate, Colt Resources Middle East (CRME), has entered into an exclusivity agreement with Lake Resources NL, an Australian-based global mineral exploration company, trading on the Australian Stock Exchange. Colt owns 38 per cent of CRME and is currently its largest shareholder. The agreement sets out the terms and conditions whereby CRME can earn a majority interest in Lake's Chagai Hills exploration licences in Balochistan, Pakistan. The agreement sets an exclusivity period of 120 days, and, during this period, the parties aim to conclude the final terms and conditions of a joint venture.

The Chagai Hills exploration licences cover three primary mining areas, Amalaf, Dasht-i-Gaurance and Koh-i-Sultan. The Amalaf area adjoins the northern boundary of the Saindak copper-gold mine. The exploration target is large-tonnage, low-grade copper amenable to low-cost, open-pit mining and trucking to the adjacent Saindak mine operated by Chinese company Metallurgical Construction Corp. The Dasht-i-Gaurance area is situated to the west of copper mineralization reported by Tethyan Copper Company from drilling at its Sor Baroot prospect at the Reko Diq project and covers a number of possible alteration zones identified from interpretation of satellite images. At Koh-i-Sultan, Lake is exploring for gold and copper associated with an extensive system of intensely altered breccia and volcanics covering an area of more than five square kilometres on the margin of an extinct volcanic caldera. Limited drilling by Lake has encountered significant copper and gold values associated with porphyry-copper-type mineralization.

It is expected that there will be three parties to the joint venture, Lake, CRME and Amir Resources Consultants. A Pakistan company will be incorporated (OpCo), into which Lake's exploration licences will be transferred. CRME will subscribe to a minimum of $1.9-million (U.S.) worth of shares for 60 per cent of OpCo for the purposes of investing in exploration of the territory covered by the licences within three years. The balance of shareholdings will be divided between Lake and Amir, holding 27.5 per cent and 12.5 per cent, respectively. Subsequently, CRME will invest $3.1-million (U.S.), for a minimum aggregate of $5-million (U.S.) over six years in OpCo for the purposes of exploration, whereby the shareholdings will become: CRME at 60 per cent, Lake at 15 per cent, the government of Balochistan at 12.5 per cent and Amir at 12.5 per cent.

Should CRME exceed $5-million (U.S.) of investments in OpCo, CRME can earn in such that Lake and Amir will be diluted until Lake and Amir each reach 10 per cent. Lake's 10-per-cent shareholding will then revert to a 10-per-cent carried interest with Lake's share of the investment payable from 80 per cent of Lake's share of net profits. Amir, on diluting to a 10-per-cent shareholding, will revert to a 5-per-cent free-carried net profits interest. In the event that CRME invests only the minimum of $1.9-million (U.S.) within three years, then the shareholdings of OpCo will revert to CRME holding 51 per cent, Lake holding 40 per cent and Amir with 9 per cent.

Both Lake Resources and CRME are excited about the opportunity offered by the agreement and look forward to concluding the joint venture soon in order to be able to continue to develop the significant resource potential of the licensed areas. Richard Quesnel, president and chief executive officer of CRME, stated, "By partnering with Lake Resources, the local community and the government of Balochistan, we believe that we can become an engine that could potentially develop what could be a world-class asset in the Chagai Hills copper/gold district." Jim Clavarino, executive director of Lake Resources, stated, "I am very pleased to have concluded this initial agreement with CRME and feel they are the right partner to continue the significant work already carried out by our company in Balochistan."

Alexandra Akyurek, MCSM, CSciMIMMM, principal exploration geologist, SRK Exploration Services, is an independent qualified person, as defined in National Instrument 43-101. Mrs. Akyurek has reviewed the technical content of this press release and consents to the information provided and the form and context in which it appears.

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