COLORADO RESOURCES LTD. (TSX-V:CXO) is pleased to announce that, further to its news release of August 4, 2017, the Company has closed the non-brokered private placements of 10,000,000 units at an issue price of $0.26 per Unit and 12,720,000 flow-through units at an issue price of $0.365 per FT Unit for aggregate gross proceeds of $7,052,528.

Each Unit consisted of one common share in the capital of the Company and one-half of one non-transferable Common Share purchase warrant. Each whole warrant entitles the holder to acquire an additional Common Share at an exercise price of $0.45 until February 29, 2020.

Each FT Unit consisted of one common share in the capital of the Company that qualifies as a flow-through share for purposes of the Income Tax Act (Canada) and one-half of one Warrant.

The Company has paid aggregate cash finder’s fees in connection with the Placements of $190,268.

Proceeds from the FT Units will be used by Colorado to incur eligible Canadian exploration expenditures to expand the 2017 exploration program. Colorado will renounce the qualifying expenditures to subscribers of the FT Units for the fiscal year ended December 31, 2017. Proceeds from the sale of Units will be used for general corporate purposes.

In connection with the Placements, Goldcorp Inc. received the right to maintain its pro-rata ownership percentage in Colorado during future financings. This right will entitle, but not obligate Goldcorp to participate in any future equity financings by Colorado to the extent necessary for Goldcorp to maintain a 19.95% equity ownership interest in the issued and outstanding common shares of Colorado. Goldcorp’s right to participate in future financings will terminate if its equity interest falls below 7.5% of the issued and outstanding common shares of Colorado. Goldcorp will also have a right to match non-equity financing and tolling arrangements related to future exploration or development on the KSP property and any BC properties Colorado expends the Goldcorp use of proceeds.

Colorado has been advised that Goldcorp has acquired beneficial ownership of 16,960,000 Units at $0.26 per Unit for a total purchase price of $4,409,600. Accordingly, Goldcorp will be acquiring beneficial ownership of: (i) 16,690,000 Common Shares, representing approximately 14.0%14.0% of the issued and outstanding Common Shares; and (ii) 8,480,000 Warrants representing approximately 25.48% of the issued and outstanding warrants of the Company. Should Goldcorp exercise all of the Warrants, Goldcorp would hold 25,440,000 Common Shares representing approximately 19.61% of the issued and outstanding Common Shares (on a partially diluted basis). Prior to this acquisition Goldcorp did not own any securities of Colorado. Goldcorp is acquiring the beneficial interest in the securities for investment purposes. Goldcorp will evaluate its investment in Colorado from time to time and may, based on such evaluation, market conditions and other circumstances, increase or decrease shareholdings as circumstances require. The exemption relied on by the Company for the sale of the FT Units and the Units to Goldcorp was Section 2.3 of National Instrument 45-106 – Prospectus Exemptions. Goldcorp will be filing an early warning report in connection with the acquisition which will be filed on Colorado’s SEDAR profile. Goldcorp’s head office is located at Suite 3400 – 666 Burrard St. Vancouver, BC, V6C 2X8.

All securities issued in the Placements are subject to a statutory hold period ending January 1, 2018.

About Colorado

Colorado Resources Ltd. is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and Nevada.

Colorado’s main BC exploration projects include the 100% owned KSP property, the 100% owned Kingpin property and the 100% owned North ROK property. Additionally Colorado holds an option on the Green Springs Property (Nevada) from Ely Gold & Minerals Inc.