COLORADO RESOURCES LTD. (TSX-V:CXO) is pleased to announce that, further to its press release of May 19, 2016, and May 31, 2016 it has completed the final tranche of its non-brokered private placement with Kinross Gold Corporation for aggregate gross proceeds of $910,000. The Final Tranche which closed effective June 1, 2016 consisted of the issuance of 2,600,000 NFT Units to Kinross. Each Final Tranche NFT Unit consisted of one common share in the capital of the Company and one common share purchase warrant with each NFT Warrant entitling the holder to acquire an additional NFT Share at an exercise price of $0.50 until June 1, 2018.

With the completion of the Final Tranche, the final aggregate Offering consists of 9,274,931 units of the Company at an issue price of $0.35 per Unit and 3,542,334 common shares of the Company that qualify as flow-through shares for purposes of the Income Tax Act (Canada) and 1,771,167 warrants at an issue price of $0.42 per FT Unit.

Adam Travis, President and CEO of Colorado states: “We are very pleased to have the strong support of our existing shareholders and welcome new ones. Kinross increasing its shareholding is a strong vote of confidence in our technical team and our projects. The closing of this placement along with the funds we already had on hand have provided us a path to earning a controlling interest in the KSP Project. KSP is clearly one of B.C.’s best exploration projects centered in the heart of the Golden Triangle. We look forward to commencing drilling shortly on our Inel high grade gold target as soon as conditions allow.”

The Final Tranche NFT Warrant contains an acceleration provision such that if, commencing on October 3, 2016 the closing price of the common shares of the Company on the TSX Venture Exchange is higher than $0.75 for 20 consecutive trading days then on the 20^th consecutive trading day the expiry date of the Warrants may be accelerated to the date that is 20 trading days after the Acceleration Trigger Date by the issuance of a news release announcing such acceleration within two trading days of the Acceleration Trigger Date.

The shares issued under the Final Tranche, and any shares issued on exercise of the NFT Warrants, will be subject to restrictions on transfer until October 2, 2016.

The initial tranche which closed effective May 19, 2016, consisted of the issuance of 2,211,430 NFT Units and 2,282,334 FT Units for aggregate gross proceeds of $1,732,580. The second tranche which closed effective May 31, 2016, consisted of the issuance of 4,463,500 NFT Units and 1,260,000 FT Units for aggregate gross proceeds of $2,091,425.

The Company has paid aggregate finders’ fees in connection with Tranche 1 and Tranche 2 of $182,279 cash and issued to finders 68,880 warrants at an exercise price of $0.35 and 128,119 warrants at an exercise price of $0.42. Each Finder Warrant is otherwise exercisable on the same terms as the warrants issued to investors in the Offering.

The proceeds will be used by the Company for exploration activities on it Canadian properties and for working capital.

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 is also seeking opportunities in Southwest USA and Latin America.

Colorado’s current exploration focus is to continue to advance: the KSP property optioned from SnipGold, located 15 kms along strike to the southeast of the past producing Snip Mine; its 100% owned North ROK property, located 15 kms northwest of the Red Chris mine development, both located in northern central British Columbia.