Source : DSA Corporate Services Inc.

Lago Dourado Recommences Phase 2 Diamond Drill Program to Test New Porphyry Target at Juruena Project, Brazil

TORONTO, ONTARIO--(Marketwire - Oct. 3, 2012) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") is pleased to announce that Phase 2 diamond drilling has recommenced on its flagship 100%-owned Juruena Project located in Mato Grosso, Brazil. Drilling will initially test the new porphyry target identified by the recently completed IP survey and multi-element soil sampling program. To ensure the project was advancing in a cost-effective manner, the diamond rig was temporarily halted in June. This stoppage of the diamond drilling has allowed for the full integration of results from the IP survey, 3D magnetic inversion study, and the ongoing RC drill campaign, as well as current petrology and alteration mapping work. An 8,000 metre diamond drill program is currently planned initially with one drill rig ramping up to two rigs in the coming months.

RC Drilling Update

Reconnaissance-style RC drilling is ongoing in the Tomate Zone and in the central part of the main IP anomaly. RC drilling is in its final stages with approximately 6,000 metres (80 holes) drilled to date.

RC drilling at the Donna Maria zone has confirmed the continuity of high-grade gold mineralization at this zone. Hole JRNRC031, drilled at the southern end of the Donna Maria Zone intercepted 4 metres of 12.97g/t gold at a depth of 13 metres. High-grade mineralization at Donna Maria has now been proven to extend for over 200m and is still open to the north and at depth. Drill intercepts from this zone, including recently reviewed historic drill holes, are outlined in Table 1 and a plan map is attached with Figure A:

Table 1 - Donna Maria Result Summary:

Hole Number Metres x
Hole Type From
JRNRC030 - Phase 2 - RC No significant mineralization
JRNRC031 52 Phase 2 - RC 13 17 4 13.0
including 14 15 1 42.8
JRND012 101 Phase 1 - Diamond 59 60 1 101.1
34 105 121 16 2.1
J-07 153 Historic 107.7 118.2 10.5 14.6
304 124.7 130.5 5.8 52.4
J-24 56 Historic 76.4 78.0 1.6 35.3
J-47 32 Historic 157.5 158.4 0.9 35.8
J-61 22 Historic 128.2 129.1 0.9 24.3

Note - Historic drill results are quoted as per the October 2010 Juruena Technical Report and have not been verified. Intervals are based on a bottom cut-off of 0.15g/t gold and do not necessarily indicate true widths.

The intercepted high-grade zone in hole JRNRC031 was beneath shallow artisanal workings and in an area that had not been previously drill tested. Mineralization in the Donna Maria zone is related to an intense shear zone splaying off the Juruena Fault and is likely connected to Au-Ag-Cu mineralization at the adjacent Crentes Zone. The Donna Maria Zone has not been extensively drill tested by the Company (two RC holes and one diamond hole only), although 15 shallow holes (less than 200 metres) were drilled at this zone historically.

Three short step-out RC holes to the east and west of the Crentes Zone along the main Fault and two step-out holes to the south of Crentes were drilled with no significant mineralization intercepted. The plan map included in Figure A shows the location of these drill holes.

In addition to the Donna Maria and Crentes drilling, six short step-out RC holes were drilled at the high-grade Querosene Zone to test its along strike continuity (see Figure B: None of the holes intercepted significant mineralization. It was confirmed that the Juruena Fault does terminate the Querosene Zone at its western end. The mapped late and flat-lying dolerite dyke in the southern wall of the Querosene pit, that is responsible for the abrupt discontinuance of the Querosene Zone, was intercepted in all three holes drilled to the south. This extends its known extent further than previously interpreted, and prevented the positive confirmation of the extension of the high-grade mineralization further south in the shallow RC holes. Further step-out holes below and past the late dyke dolerite to the south will be required to continue testing the extension of this zone. Shallow reconnaissance-style RC drilling has also been completed at the Pista Zone (four holes) and Capixaba Zone (ten holes) however no meaningful zones of mineralization were intercepted.

Qualified Person

Murray Paterson, P.Geo, Vice President Exploration and Development for Lago Dourado Minerals Ltd, is the Qualified Person, within the meaning of NI 43-101,who reviewed the technical data in this news release. Samples were fire assayed by Acme Analytical Laboratories S.A. in Santiago, Chile.

About the Company:

Lago Dourado Minerals Ltd. is a Canadian mineral exploration company focused on advancing its 100%-owned Juruena gold project in the state of Mato Grosso, Brazil. Extensive gold mineralization has been identified over 15 square kilometres of the property, and at least 450,000 oz of gold has been mined from surface workings. The Company has conducted systematic exploration programs over portions of the property and priority target areas will be drill tested with a Phase 2 drill campaign that is expected to be ongoing through 2012.

For further information about the company, please visit or

Forward-Looking Statements

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. Although Lago Dourado believes that the expectations reflected in the forward looking statements contained in this press release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause Lago Dourado's actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and Lago Dourado does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information:

Lago Dourado Minerals Ltd.
Forbes Gemmell
President and Chief Executive Officer
(416) 368-5005 or 1-855-368-5005