Colt Resources Inc.

Colt Resources Inc.

December 10, 2007 12:39 ET

Colt Acquires Armamar Meda Concession in Portugal

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2007) - Colt Resources Inc. ("Colt" or the "Company") (CNQ:COLT) is pleased to announce that Colt has entered into a prospecting and exploration license agreement with the Government of Portugal whereby Colt has been granted the exclusive right to prospect and explore for base and precious metals on the ARMAMAR MEDA Property which has a surface area of approximately 436 sq. km. and which is partially contiguous to the Company's Penedono Exploration Concession (the "ARMAMAR MEDA EXPLORATION LICENSE").

The initial term of the ARMAMAR MEDA EXPLORATION LICENSE is for three years (the "Initial Term"), which can be extended twice on an annual basis (the "Extended Term"). During the Initial Term, Colt is obligated to incur prospecting and exploration expenditures of not less than 25,000 EUR in the first year, 50,000 EUR in the second year and, 75,000 EUR in the third year. Upon the expiry of the Initial Term, Colt shall be required to relinquish, on an annual basis, 50% of the area covered by the ARMAMAR MEDA EXPLORATION LICENSE. During the Extended Term, Colt is obligated to incur exploration expenditures on an annual basis of not less than 100,000 EUR. During the Initial and Extended Terms, Colt is obligated to pay to the Government of Portugal an annual fee in the amount of 35 EUR per sq. km. of ground covered by the ARMAMAR MEDA EXPLORATION LICENSE.

In respect to the ARMAMAR MEDA EXPLORATION LICENSE, Colt has lodged a bank guarantee, as a performance bond, for the amount of 1,000 EUR in favour of the Government of Portugal. Colt is obliged to increase the amount of the bank guarantee to 20,000 EUR within sixty days from December 10, 2007.

Upon the completion of the Initial and Extended Terms, Colt may apply for an Exploitation License, which, if granted, shall have a term of 30 years and which may be extended by Portuguese Government approval for a period not to exceed 20 years (the "Exploitation License"). Upon the granting of the Exploitation License, and in the event that mining activities are to take place, then Colt shall be obligated, at Colt's sole discretion, either to pay 10% of the net income derived from its mining activities or, alternatively, pay Net Smelter Returns Royalty ("NSR") on production at NSR rates ranging from 1% to 4% depending on the price of gold. Additionally, as soon as the Exploitation License is granted to Colt, and provided that production from the mining activities is determined to exceed 1,000,000 ounces of gold or of gold equivalent during the life of the mining activities, then Colt will be obligated to pay 100,000 EUR as a commercial discovery bonus to the Government of Portugal.

For more information on the Company, please contact us at (604) 681-1519 ext 6106, or visit our Website at

Colt Resources Inc.

Bedo H. Kalpakian, President, CEO 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.

The CNQ has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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