Colorado Announces Closing of $4M Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 11, 2013) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Colorado Resources Ltd. (TSX VENTURE:CXO) ("CXO" or the "Company") is pleased to announce the Company has closed the non-brokered private placement (the "Financing") announced in the Company's News Release dated June 21, 2013.

The Financing resulted in the issuance of 5,000,000 flow-through shares at a purchase price of $0.80 for gross proceeds of $4,000,000. Proceeds from the Financing will be used primarily to advance exploration activities on the Company's North ROK and other Canadian properties.

Finder's fees are payable on a portion of the Financing equivalent to 5% cash ($158,000) and 5% warrants (197,500) (a "Finder Warrant"). Each Finder Warrant will entitle the holder thereof to purchase one common share (a "Warrant Share") of the Company at an exercise price of $0.85 per Warrant Share for a period of 12 months from the closing date of the Financing.

In accordance with the Canadian securities legislation currently in effect the securities issued pursuant to the Financing will have a restricted "hold" period in Canada expiring on November 9, 2013.

"I'm very pleased to close this strategic financing during these difficult market conditions," said Adam Travis, President and CEO of Colorado. "Half the Financing went to one institutional purchaser and a significant portion went to long-time supporters of the Company, which is a testimony to the strength of not only our projects, but also our team."

About Colorado

Colorado is engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in Canada and is also aggressively seeking quality properties in the US southwest and Latin America.

Colorado's current exploration focus is the advancement of its 100% owned North ROK and its optioned Eldorado projects which are located within 10 - 15Km of the Red Chris mine development, in northern British Columbia.

ON BEHALF OF THE BOARD OF DIRECTORS OF

COLORADO RESOURCES LTD.

Adam Travis, President and Chief Executive Officer

NR 13-12

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to United States Persons unless an exemption from such registration is available.

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 reports filed on SEDAR at www.SEDAR.com for a more complete discussion of such risk factors and their potential effects.

Neither the 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.