Colorado Resources Ltd. and Ross River Dena Council Sign Traditional Knowledge Protocol

KELOWNA, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2011) - COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") and the Ross River Dena Council ("RRDC") are pleased to announce that they have signed a Traditional Knowledge Protocol for the Company's ORO Project in Yukon, Canada.

Traditional Knowledge Protocol

Within the Protocol, Colorado has agreed to incorporate Traditional Knowledge into all phases of its ORO Project, and Traditional Knowledge will be provided by RRDC to support the Yukon Environmental Socio-Economic Assessment Board (YESAB) process.

"The Ross River Traditional Knowledge Protocol is an important first step in developing and strengthening our relationship with the RRDC with the parties recognizing that they have a mutual and beneficial interest in co-operating with each other," said Adam Travis, Colorado Resources Ltd. President and CEO.

"I am pleased to sign this Traditional Knowledge Protocol and appreciate the importance Colorado Resources attaches to this knowledge, particularly in the early, exploration phase of its Oro project," said Chief Jack Caesar. "This Protocol creates an opportunity to work together to provide meaningful benefits and opportunities for our younger generation."

ORO Project

The ORO Project is located in the Macmillan Pass area of the Yukon, approximately 165 km northeast of the community of Ross River with access gained along the government maintained North Canol Road. Colorado has significantly increased the size of its ORO Property to over 36,185 hectares that covers an area 10-15 km wide by 29 km long which covers prospective geology for Carlin-type gold occurrences between Golden Predator Corp.'s Cynthia Property and Teck Resources Ltd.'s Nidd Property.

The Company has commenced an aggressive exploration program on the ORO Project, aimed at expanding known mineralization and exploring the remainder of its vast landholdings to define drill targets (see News Release dated August 12, 2011).

About Colorado

Colorado is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and the Yukon and is also aggressively seeking properties in Latin America. Colorado's primary focus is to follow up exciting "Carlin" style mineralization found by previous workers on its Oro Gold Property in the Yukon.

ON BEHALF OF THE BOARD OF DIRECTORS OF COLORADO RESOURCES LTD.

Adam Travis, President and Chief Executive Officer

NR 11-10

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding proposed exploration activities. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the market for gold or other minerals that may be produced generally, recent market volatility; variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company's prospectus dated September 16, 2010 for a more complete discussion of such risk factors and their potential effects, a copy of which may be accessed through the Company's page on SEDAR at www.sedar.com.