Mr. Nikolas Perrault reports

COLT RESOURCES ANNOUNCES SHARES FOR DEBT AGREEMENT

Colt Resources Inc. has made an offer for conversion in shares of its senior secured debt in the aggregate principal amount of $2.7-million (U.S.) to all of its existing senior secured noteholders, and, in connection therewith, Colt has entered into an agreement with one of the noteholders, Richard Quesnel.

Pursuant to the agreement and subject to TSX Venture Exchange approval, Colt will issue to the creditor 14,233,857 units at a deemed price of 17.5 cents per unit in payment of a $2-million (U.S.) senior secured note and all accrued interest thereon at the date of the agreement in the amount of $72,877 (U.S.). The company elected to satisfy this outstanding indebtedness with units to preserve its cash for operations.

Each unit will comprise one common share and one common share purchase warrant.

Each warrant will entitle the holder thereof to acquire for a period of three years one common share of Colt at a price of 25 cents per common share. The securities issued to the creditor will be subject to a four-month plus one day statutory resale restriction.

Colt may proceed with additional conversion of senior notes in shares upon similar terms in the event that other noteholders accept the conversion offer. In that case, the outstanding aggregate principal amount of $700,000 (U.S.) of senior secured notes and all accrued interest thereon in the amount of $25,508 (U.S.) could be converted in consideration for the issuance of up to 4,974,908 units.

We seek Safe Harbor.