Mr. Joseph Mullin reports

COLORADO DISCOVERS PORPHYRY COPPER-GOLD-MOLY SYSTEM AND OTHER NEW TARGETS AT CASTLE, BC

Colorado Resources Ltd. has released assay results for the first four holes ever drilled at the Castle East porphyry copper-gold-molybednum target, as well as surface sampling and geophysical results from several other exciting new prospects on the greater Castle property.

The 192.7-square-kilometre Castle property is located in the Red Chris mining district of the Golden Triangle of northwestern British Columbia. It adjoins the Tatogga property of GT Gold Corp., which hosts the new Saddle North Cu-Au and Saddle South gold-silver deposits.

Promising results from Colorado's 2019 fall program include:

• Porphyry-style mineralization discovered at Castle East -- Three of four holes intersected broad Cu-Au-Mo values in what is thought to be the pyritic outer shell of a porphyry system, for example:
  • DDH CAE19-01 intersected 14.9 metres grading 0.1 per cent Cu and 0.52 gram per tonne Au.
  • DDH CAE19-02 intersected 248.2 m grading 0.07 per cent Cu, including 22.8 m grading 0.15 per cent Cu and 53 parts per million Mo.
• At the CGZ prospect, two vein trends, 2.2 km and 2.7 km long, have been outlined with up to 5.73 per cent Cu, 7.83 grams per tonne Au and 145 grams per tonne Ag in grab samples.
• At the Castle Central prospect, grab samples of veins up to 30 centimetres wide returned up to 33.2 grams per tonne Au, 9.82 per cent Cu, 282 grams per tonne Ag and 3.36 per cent zinc.
• At the new Moat target, anomalous Au and pathfinder values were outlined in soil samples only 350 m from the Saddle South Au-Ag deposit of GT Gold.
• The Castle South chargeability anomaly has been outlined over a 650 m by 2,100 m area and is open to the east and west.

Joseph Mullin, chief executive officer, commented: "We are very pleased with our progress at Castle. While we started late in the season, our fall 2019 exploration work has been successful in identifying several exciting new porphyry and vein targets that we look forward to following up next year."

Michael Cathro, PGeo, a director of Colorado Resources, commented: "Our 2019 drilling program demonstrates the existence of a porphyry copper-gold-moly system at Castle East. In addition, field surveys defined several other excellent porphyry and precious-metal-enriched polymetallic vein targets for future follow-up. The Castle East porphyry target has never been drilled before, and we believe the monzodiorite host rocks, style of alteration, geochemistry and high sulphide content tells us we are in the 'pyrite shell' or 'phyllic cap' of a robust porphyry system, which appears to be getting hotter and stronger to depth and to the west of the area drilled."

Castle East drilling

The Castle East target is located on the Castle-Saddle trend, approximately three to five km west of the Saddle deposits of GT Gold and 1.5 km east of the Castle prospect. Previous drilling at Castle by Sumitomo (1973), Teck (1988) and West Cirque/Freeport (2012/2013) encountered broad widths of porphyry-style Au-Cu mineralization (see Colorado news release dated Feb. 6, 2017).

The 2019 Castle East drill holes are the first holes ever drilled at Castle East. Three of the holes, CAE19-01, CAE19-02 and CAE19-03, tested the upper portion and northern flank of the Castle East induced polarization (IP) chargeability anomaly, which is coincident with a Cu-Au-Mo soil anomaly, and magnetic low anomaly. The IP feature: is a steeply plunging body; has surface dimensions of at least 500 by 700 m; is partially open to the east; and extends to at least 500 m below surface, the limit of the survey method. Assays are tabulated in the attached table.

Although only anomalous Cu-Au-Mo values were intersected in these three holes, chalcopyrite and molybdenite occur as disseminations within quartz-pyrite and quartz-carbonate-pyrite veins in pervasive phyllic (quartz-sericite-pyrite (QSP)) alteration of monzodiorite intrusive rocks. Pyrite content of the altered rock ranges from 1 per cent to 15 per cent, which explains the strong chargeability anomaly. The alteration and mineralization encountered by the drill holes are consistent with the phyllic cap or pyrite shell in the upper/outer parts of a porphyry Cu-Au-Mo system and are similar to the upper reaches of the Saddle North, Red Chris and many other porphyry systems in British Columbia.

Most importantly, geochemical and alteration vectors point to the possibility that the core of the porphyry system, with better Cu-Au-Mo grades, may be to the west and at depth from hole CAE19-02. This is supported by the westward increase in Cu and Mo grades and a noticeable increase in the presence of pervasive chlorite-sericite and local biotite and potassic alteration, along with increasing quartz-magnetite-chalcopyrite veins moving westward from hole CAE-03, through hole CAE19-01 to CAE19-02.

A fourth hole, CAE19-04, was collared 430 m farther west and drilled to the north. It was designed to test a copper-gold-in-soil anomaly and a magnetic anomaly on the northern contact of the intrusive complex. Only sporadic gold mineralization was encountered.

Please see Colorado's website for a detailed drill plan.

New targets

As outlined in the news release dated Oct. 10, 2019, the company also completed field surveys over several areas in the northeast portion of the Castle property. The work included 211 prospecting rock samples, 913 soils samples, 23 line km of induced polarization surveying and a 1,100 km high-resolution airborne magnetic survey.

CGZ target

Detailed prospecting was completed on the CGZ discovery, which is located two kilometres south of the Castle-Saddle trend. Work has outlined two intersecting trends 2.2 km and 2.7 km in length, respectively, with 21 out of 70 grab bedrock and float samples collected in 2019 returning: greater than 1 per cent Cu, ranging from 0.01 per cent to 5.79 per cent Cu; nil to 7.83 grams per tonne Au; and 0.2 to 145 grams per tonne Ag. The area is mostly scree covered with limited outcrop. Mineralization comprises quartz-carbonate-chalcopyrite veins, veinlets and stockworks, ranging from a few centimetres to two metres in width, that cut a variety of volcanic and sedimentary rocks. The northern CGZ trend is associated with a prominent magnetic low. This target has never seen drilling or trenching. Soil sampling, hand trenching and detailed geological mapping are recommended.

Castle Central

Castle Central occurs along the Castle-Saddle trend, midway between the Castle and Castle East targets. Seventeen bedrock and float grab samples of narrow (to 15 centimetres) quartz-pyrite-chalcopyrite veins collected in 2019 returned values of up to 33.2 grams per tonne Au, 9.82 per cent Cu, 282 grams per tonne Ag and 3.36 per cent Zn.

Moat target

At the new Moat anomaly, soil sampling returned anomalous values over a width of 250 m with coincident anomalous Au (to 649 parts per billion) and Ag (to 16.8 parts per million), along with anomalous copper, arsenic and antimony values. The anomaly is indicative of a polymetallic vein Au-Ag setting and occurs along the eastern claim boundary between the Castle property and the adjoining Tatogga property of GT Gold. The anomalous Moat soils occur within 350 m of the nearest drill hole at the Saddle South Au-Ag deposit and less than 200 m from talus fine samples reported by GT Gold that assay up to 40.3 grams per tonne Au (GT Gold investor presentation, November, 2019). The Moat soil target requires additional detailed soil and prospecting work.

Castle South induced polarization anomaly

Castle South is located one kilometre south of the Castle alteration zone and is defined by a very strong, linear IP chargeability anomaly (25 to over 40 millivolts/volt) that is 2,100 m in length, 580 m wide and 300 m deep (the limit of the survey), and still open to the west and east. The Castle South IP anomaly is mainly underlain by weakly phyllic-altered Stuhini group sedimentary rocks and volcanic rocks of the Hazelton group. Soil geochemical results are subdued directly over the chargeability feature, but are weakly to moderately anomalous in Cu, Au, Mo, As and Sb to the west and east. Limited prospecting in the past has identified quartz-carbonate veins with high Cu-Au values on the periphery of the anomaly, with values of 0.366 to 2.16 per cent Cu to the west and up to 2.5 per cent Cu and 11.9 grams per tonne Au to the east. Additional mapping and sampling are needed to understand the significance of this geophysical anomaly.

Magnetic survey

The results of Colorado's high-resolution airborne magnetic survey, with a line spacing of 100 m, have now been compiled and merged with publicly available magnetic data from Geoscience BC that cover the eastern portion of the Castle-Saddle trend, including the Saddle North and Saddle South deposits. A composite magnetic image, which includes known targets, is included at Colorado's website. The magnetic survey is a key tool to understand the local and regional controls on mineralization along the trend, in particular the east-west alignment of magnetic highs and a series of northwest-trending linears that appear to represent controlling or offsetting structures near deposits.

Update on Moat option

As previously disclosed in its public filings, prior to the acquisition of Buckingham Copper Corp. by the company in August of this year, Buckingham had entered into an option agreement dated Dec. 18, 2018, with Richard Billingsley, Gaye Richards and Dwayne Kress to acquire a 100-per-cent interest in the Moat claims, which claims were adjacent to the company's Kinaskan-Castle property. The Moat property is 1,691 hectares in size and comprises four mineral tenures. Colorado holds the underlying 2.5-per-cent net smelter return royalty on the Moat property. The Moat property and the Kinaskan-Castle property now form one property, known as the Castle property. In order to exercise the Moat option, the company must issue common shares equal to $1.6-million over three years, with the deemed value of each share equal to the company's market price at the time the shares are issued, subject to a minimum price of five cents, pursuant to TSX Venture Exchange rules. The first share payment, equal in value to $400,000, is due on Dec. 18, 2019, with subsequent share issuances, equal in value to $500,000 and $700,000, due on Dec. 18, 2020, and Dec. 18, 2021, respectively. The issuance of shares under the terms of the option agreement is subject to TSX-V acceptance of the option agreement.

Quality assurance/quality control procedures

Colorado has implemented a rigorous quality assurance/quality control program to ensure best practices in sampling and analysis of field samples and diamond drill core. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance.

All 2019 assays were performed by Activation Labratories Ltd. (Actlabs) in Kamloops, B.C., an ISO/IEC 17025- and CAN-P-1579-accredited facility. For gold, fire assays are performed by method 1A2-50 (five to 5,000 parts per billion Au) using 50 grams of sample measured by atomic absorption (AA). Assays equal to or greater than five grams per tonne Au are reanalyzed gravimetrically by method 1A3-50. Silver, copper and other trace elements are analyzed by method UT-4M with a four-acid digestion, followed by ICP-MS analysis. Values greater than the upper detection limit for Ag, Cu, Pb and Zn are reanalyzed by ore-grade assay method 8-4 acid with a four-acid digestion, followed by ICP-MS analysis. Assay values are uncut.

Qualified person

The technical information in this release has been reviewed and approved by Michael Cathro, MSc, PGeo, a Colorado Resources director and a qualified person under National Instrument 43-101.

About Colorado Resources Ltd.

Colorado Resources is exploring high-grade gold and copper in the Golden Triangle and the Toodoggone area of British Columbia.

We seek Safe Harbor.