Lago Dourado Intercepts 71m of 0.80 g/t Gold, Including 46.5m of 1.10 g/t Gold at Juruena Project in Brazil

TORONTO, ONTARIO--(Marketwire - May 11, 2011) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") is pleased to announce initial assay results from its 18,000-metre Phase I drill program on its 100%-owned Juruena Gold Project in Mato Grasso, Brazil. Results for the first 8 of 13 holes drilled at the Crentes Zone are summarized in Table 1 below. Highlights include:

• Hole JRND001 which intercepted 71 metres of 0.80 g/t gold from surface, including 46.5 metres of 1.10 g/t gold;
• Hole JRND007 which intercepted 61 metres of 0.76 g/t gold from surface, including 10 metres of 2.49 g/t gold.

The primary purpose of the initial holes drilled at Crentes, which was the main target of historic drilling, was to gain an increased understanding on the controls and distribution of the gold mineralization on the property. Since drilling commenced in December 2010, a geophysical interpretation of the property has been completed by TerraNotes, a Canadian geophysical consulting firm. TerraNotes has identified multiple high priority target areas located on the contact zones of the main magnetic bodies. These contact zones also coincide with radiometric anomalies (potassium and thorium) and gold-in-soil anomalies. With drilling at Crentes now complete, the focus of the drill campaign has shifted to targeting these main contact zones. The three rigs will initially focus on the Jacare, Noventa Graus and Querosene zones, none of which have been previously drill tested (see Figure A).

To view Figure A, please visit the following link: http://media3.marketwire.com/docs/LDM-Figure-A.pdf

"We are very encouraged by the mineralization and intense alteration that we are encountering in the early stages of this 18,000-metre drill program" said Forbes Gemmell, President and CEO. "We now look forward to testing the multiple targets identified by the recently completed geophysical interpretation with the goal of expanding the limits of the known mineralized system. This drilling will be ongoing through the course of the spring and summer."

Drilling at Crentes is now complete with 13 holes drilled across four lines approximately 100 metres apart (see Figure B). Assays from the first three lines each returned promising gold grades over significant intercepts. Four types of mineralization have been encountered in the drill holes; sulphide-rich stockwork quartz veins, hydrothermal breccias, shear zone-hosted and disseminated sulphides within intensely altered Granite. The mineralization remains open at depth and along strike with the high-grade soil anomaly extending 800m westwards and at least 600m eastwards.

To view Figure B, please visit the following link: http://media3.marketwire.com/docs/LDM-Figure-B.pdf

Qualified Person

Murray Paterson, P.Geo, Vice President Exploration and Development for Lago Dourado Minerals Ltd, is the Qualified Person, within the meaning of NI 43-101,who reviewed the technical data in this news release. Samples were fire assayed by Acme Analytical Laboratories S.A. in Santiago, Chile.

About the Company:

Lago Dourado Minerals Ltd. is a Canadian mineral exploration company focused on advancing its 100%-owned Juruena gold project in the state of Mato Grosso, Brazil. Extensive gold mineralization has been identified, and at least 0.5 million oz of gold has been mined from surface workings, over 10 square kilometres of the property which remains largely untested. An expanded phase I drill campaign (18,000 metres) is currently underway and is expected to continue throughout 2011. The Company currently has 62.1 million shares outstanding.

For further information about the company, please visit www.lagodourado.com or www.sedar.com.

Forward-Looking Statements

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. Although Lago Dourado believes that the expectations reflected in the forward looking statements contained in this press release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause Lago Dourado's actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and Lago Dourado does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.