Mr. John Gravelle reports

COLT RESOURCES PROVIDES CORPORATE UPDATE

Colt Resources Inc. has determined that the 500,000 euros it had invested in a Turkish company has been removed from the Turkish company's bank account without Colt's authorization. In 2016, Nikolas Perrault, the former president and chief executive officer, made the decision to incorporate and invest 500,000 euros in the Turkish company, with 250,000 euros of the funds provided from Colt's cash resources and the additional 250,000 euros borrowed from a shareholder of Colt. While the incorporation of and investment in the Turkish company and the borrowing of funds all required approval from the Colt board of directors, the former president and CEO did not seek board approval and did not inform the board of these actions when they were done. The company is in the process of determining the impact of these removed funds on its financial statements for the third quarter of 2016 and will make any required regulatory filings in this regard.

The company is continuing its investigation of the above and will take appropriate steps to collect any amounts owing to the company.

Since appointing John Gravelle as the interim president and CEO, the company has been revising its strategy. The company's strategy going forward is to focus on fewer projects, generate cash internally to finance these projects and significantly reduce administrative costs. Specifically, it will focus on financing for two assets: the Alvalade project in Portugal and the company's investment in CRME (see discussion available on the company's website).

Colt will continue to consider whether to invest further in Boa Fe, but has decided that it will not invest further resources in its other projects in Portugal. Tabucao is among the permits for projects in Portugal that will lapse unless a joint venture partner is found that will finance that project's expenses.

The company will set a conference call to discuss the company's strategy going forward. It invites all Colt shareholders to participate. The dial-in details for the conference call will be provided in a further press release.

We seek Safe Harbor.