Colorado Completes 2011 Field Program on Oro Property, Initial Results Extend Strike Length of Soil Anomaly to Over 3 Kilometres

WEST KELOWNA, BRITISH COLUMBIA--(Marketwire - Nov. 3, 2011) - COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is pleased to announce it has completed its busy 2011 Yukon fieldwork program and provides the following update on the Oro Property, where Colorado has the option to earn a 100% interest. Oro is located near MacMillian Pass, Yukon.

• 2,000 line kilometres of helicopter-borne EM/Magnetic survey completed.
• 13,808 soil samples, 339 silt samples, 1,233 rock samples collected.
• Geological mapping identified favourable lithologies and structures for "Carlin" style mineralization.
• 15 trenches totalling 1,368 metres completed.
• Laboratory results for more than 50% of the samples are eagerly anticipated as results are still pending.

Initial results indicate a strong arsenic-gold +/- silver +/- antimony anomaly in the area of the historic Neve Minfile occurrence that is at least 3,000 metres long and up to 800 metres wide, extending the previous anomaly by more than 2 kilometres along strike.

During the summer of 2011, Fugro Airborne Surveys completed a 2,000 line kilometre helicopter-borne DIGHEM EM/Magnetic survey over Colorado's Oro Property. This geophysical work has identified significant magnetic and resistive features that correlate on the ground with geologically mapped favourable lithologies and structures. One identified strong structure passes through the known showing and trends for more than 4 kilometres.

The 2011 exploration program also included the collection of 13,808 soil samples, 339 silt samples and 1,233 rock samples taken throughout the 15 km wide x 30 km long property. Samples were shipped to ACME Laboratory Ltd.'s, prep lab in Whitehorse, then on to Vancouver for analysis. Although 50% of soil sample results are still pending, the soil geochemical survey has already outlined a multi-element soil geochemical anomaly in the area of the historic Neve Minfile occurrence that is at least 3,000 metres long and up to 800 metres wide. The anomaly is very well defined by arsenic (>100 ppm with a maximum value of 4469 ppm) and gold (>25 ppb with a maximum value of 1490 ppb), with sections of elevated silver (2.0 ppm with a maximum value of 23.0 ppm) and antimony (>10 ppm with a maximum value of 593 ppm). The Neve mineralization (which includes the J.O., Saddle and Canol Zones) was first identified as analogous to Nevada's Carlin style mineralization by Agip Inc. in the early 1980s.

Two helicopter portable excavators trenched across previously known soil geochemical anomalies with 15 trenches, totalling 1,368 metres. Approximately half of the trench assay results are pending. Occurrences of significant orpiment and realgar were also identified by Colorado geologists from outcrops in the Saddle Zone.

Several other target areas on the property have also been defined by geochemistry and geophysics. These include the West Zone, Limey Ridge, Repeater Zone and Area 51. Area 51 covers an area of 1800 by 400 metres with strong arsenic and antimony soil geochemistry and scattered high gold soil values to a maximum of 1548 ppb.

The remainder of the analytical results for the 2011 exploration program are not expected until late November.

The Company is encouraged by these initial results from its Oro Property and will continue to compile and evaluate results in preparation for proposed trenching and drilling next year.

After completion of the 2011 fieldwork, the Company's maintains a strong treasury, as it continues to work on its British Columbia properties and searches for opportunities in Mexico and Central America.

Qualified Person

Mr. Greg Dawson, P.Geo., is the Qualified Person as defined by National Instrument 43-101 who supervised the preparation of the technical data in this news release.

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 on the Oro Property located in the MacMillan Pass area of the Yukon, in which it has the option to acquire a 100% interest.

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

Adam Travis, President and Chief Executive Officer

NR 11-16

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.