Colt Resources Inc.
CNQ : COLT

Colt Resources Inc.

June 08, 2007 12:12 ET

Colt to Proceed to Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 8, 2007) - Colt Capital Corp. (the "Company" or "Colt") (CNQ:COLT) wishes to announce that it intends proceeding to a private placement of Convertible Debentures for proceeds of up to $1 million. The Debentures bear interest at a rate of 10% per annum compounded monthly and shall have a term of three years. They shall be convertible into Units consisting of Common Shares and Warrants. If converted in the course of the first year the conversion price will be $.05 per Unit, if during the second year, $.06 per Unit and if in the third year, $.07 per Unit. The Warrants comprised in the Unit entitle the holder to purchase a Common Share at $.05 if exercised during the first year, $.06 if exercised during the second year and $.07 if exercised during the third year. In respect to this transaction, finders' fees of 8% of the placement will be paid by the Company.

The securities issued pursuant to the private placement will be subject to a four month and a day hold period.

The Company intends using the proceeds from this financing for general working capital purposes.

This transaction is subject to the approval of the CNQ.

Colt Capital Corp.

Bedo H. Kalpakian, Chairman and CFO

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement in this release containing words such as "believes", "anticipates", "plans", "expects" or "intends" and other statements that are not historical facts are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in those forward-looking statements.

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