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Preliminary Economic Assessment filed on SEDAR for Colt’s 100% Boa Fe and Montemor Projects, Southern Portugal

May 7, 2013

    Trading Symbols:           GTP - (TSX-V)
                               P01 - (FRANKFURT)
                               COLTF - (OTCQX)

MONTREAL, May 7, 2013 /PRNewswire/ – Colt Resources Inc. (“Colt” or the
“Company”) (TSXV: GTP) (FRA: P01) (OTCQX: COLTF) is pleased to announce
the filing on SEDAR today of a positive Preliminary Economic Assessment
(“PEA”) prepared by SRK Consulting (UK) Ltd (“SRK”) for the Boa
Fe/Montemor gold projects, located in Portugal. The full report will
also be available on Colt’s website. The PEA covers the Chamine, Casas
Novas, Banhos, Bracos and Ligeiro gold deposits located within the
Company’s 100% owned (47km(2)) Boa Fe Experimental Mining License (“EML”) and the Monfurado gold
deposit located within the Company’s 100% owned (728km(2)) Montemor exploration license that completely surrounds the Boa Fe EML.

Nikolas Perrault, CEO and President of Colt stated; “We are very pleased
with the results of this first PEA prepared by SRK that reflects the
work performed on our 100% owned Boa Fe and Montemor gold projects that
we acquired in November 2011. Our strategy of focusing on areas that
were drill tested primarily during the 1990′s has resulted in the rapid
development of these assets. Our aggressive drilling campaign that
commenced shortly after being awarded the EML has significantly
increased our confidence in the potential of these assets while our
regional exploration work has indicated the potential to expand upon
the previously announced NI43-101 compliant mineral resources (March 4,
2013). Our decision to prepare the PEA on what we believe to be a
portion of a potentially larger deposit is based on our resolve to move
the project to production and to ultimately aim towards financing the
exploration of this very prospective area from revenue. We therefore
remain focused on completing our feasibility study by year end which
will support a production decision shortly thereafter. In parallel, as
part of our ongoing Environmental Impact Assessment (EIA), a scheduled
public review took place during April paving the way for final
approval. The EIA will be used as a blueprint designed to mitigate the
impact of mining while generating value in an economically depressed
region of Portugal.”

Preliminary Economic Assessment Summary

A Preliminary Economic Assessment (“PEA”) was prepared by SRK Consulting
(UK) Limited for the Boa Fe – Montemor gold project in Portugal owned
by Colt Resources Inc. The PEA relied on Indicated and Inferred
classified resources as announced by Colt on March 4, 2013. The PEA
evaluated four processing options for the open pit mining of six
separate deposits at a total annual ore production rate of 720 ktpa.
The four options are reported in Table 1.

Table 1: Boa Fe/Montemor Processing Options


    Scenarios Description

    Option A  Conventional Off-Site

    Option B  Conventional On-Site

    Option C  Drinkard Heap Leach

    Option D  Drinkard Halogen

The main conclusions from the PEA are shown in Table 2. All values are
in USD and the study assumes a USD 1.30/EUR exchange rate. A flat gold
price of USD 1,425/oz was used in the economic assessment. Capital and
operating costs were derived from a combination of first principles and
experience based on similar projects.

The conclusions and recommendations of the PEA are that the Project may
be economically viable and that further studies and field work for this
project are justified.

SRK notes that the economic assessment is preliminary in nature and the
production schedules are inclusive of Inferred classified Mineral
Resources that are considered too geologically speculative to have
economic considerations applied to them that would enable them to be
classified as Mineral Reserves. There is no certainty that the
preliminary economic assessment will be realized.

Table 2: Summary of Preliminary Economic Assessment results for Boa
Fe/Montemor deposits

Alentejo Region, Portugal: SRK Consulting (UK) Ltd.


                     Units       Option A     Option B   Option C Option D

    Processing               Conventional Conventional   Drinkard Drinkard
    Method                       off-site      on-site Heap Leach  Halogen

      Recovery         (%)           85.5         85.5         73       95

    Production                                                            

      Rock Mined      (kt)         18,735       20,923     20,028   24,425

      Ore             (kt)          3,501        4,437      4,624    5,045
      Processed

                   (g/t Au)           2.7          2.4        2.3      2.2

      Recovered    (koz Au)           262          291        249      339
      Metal

      Mine Life     (years)           5.0          6.3        6.5      7.1

    Financial                                                             

      Revenue        (USDm)           373          415        355      482

      Operating      (USDm)         (175)        (180)      (156)    (206)
      Expenditure

      Royalty        (USDm)          (15)         (17)       (14)     (19)

      Operating      (USDm)           184          219        185      257
      Profit

      Net Profit     (USDm)           164          193        159      220

      Capital        (USDm)         (119)        (123)       (92)    (124)
      Expenditure

      Cashflow       (USDm)            44           69         68       97

    Post-Tax
    Reporting

      NPV @ 5%       (USDm)          24.4         42.4       45.5     64.3

      IRR              (%)           15.6         21.4       32.7     30.2

    Cash Cost                                                             

      Cash Cost   (USD/tore)        54.11        44.22      36.82    44.68

                   (USD/oz)           724          674        683      666

Metal Price Sensitivity Analysis

The impact of a range of gold prices on the NPV(5%) for the project has been studied in the PEA and the results are
reported in Table 3.

Table 3: Gold Price Sensitivity Analysis Results


                 Units                                                

    Metal Price USD/oz 1,100 1,200 1,300 1,425 1,500 1,600 1,700 1,800

    NPV5%                                                             

      Option A    USDm  (25)   (9)     6    25    37    52    67    82

      Option B    USDm  (10)     7    24    44    56    72    88   105

      Option C    USDm     1    15    30    47    57    71    85    99

      Option D    USDm     4    24    43    66    81    99   118   137

Colt is aware that several areas of improvement may be made to capital
and operating costs which will be addressed during the Feasibility
Study.

Project Timeline and Optimization Efforts

The completion of this positive PEA is an important milestone in the
continued development of Boa Fe/Montemor.

Colt’s projected timeline to advance the project includes the following
milestones:

Q4 2013 – Resource Update
Q4 2013 – Completion of Feasibility Study
Q4 2013 – Receipt of Full Mine Permit
Q1 2014 – Detailed engineering and procurement
Q2 2014 – Commence construction activities
Q1 2015 – Commence Production

Colt intends to address several areas during the Feasibility Study so as
to improve results included in the PEA. These will include:

Mineral Resources – Colt will focus on upgrading of Inferred Resources
to Indicated Resources and the identification of additional resources
in close proximity to the known deposits. Colt is also confident that
the potential to increase resources through regional exploration is
good. Exploration work will be directed toward identifying additional
deposits that will benefit the future mining operation.

Processing – Colt will complete ongoing testwork so as to finalize and
optimize process flowsheets leading to final plant design. The several
approaches studied have provided several options that will be further
evaluated and finalized.

Pit Slope – Colt will perform additional geotechnical investigations
designed to optimize pit slope angles.

Environmental – Work will continue to address the need to minimize the
impact of the future mining project.

Mining – Capital and operating costs will be addressed in detail to
identify areas where improvements can be made so as to benefit the
future economics of the project.

About Colt Resources Inc.

Colt Resources Inc. is a Canadian junior exploration and mining company
engaged in acquiring, exploring, and developing mineral properties with
an emphasis on gold and tungsten. It is currently focused on advanced
stage exploration projects in Portugal, where it is the largest lease
holder of mineral concessions.

Jurgen Fuykschot MSc MBA MAusIMM (CP), Principal Consultant (Mining
Engineering), SRK Consulting (UK) Limited, is the independent qualified
person, as defined in NI 43 101, for the Boa Fe/Montemor Preliminary
Economic Assessment. Mr Fuykschot has reviewed the content of this
press release and consents to the information provided in the form and
context in which it appears.

The Company’s shares trade on the TSX V, symbol: GTP; the Frankfurt
Stock Exchange, symbol: P01; and, the OTCQX, symbol: COLTF.

FORWARD-LOOKING STATEMENTS: Certain of the information contained in this
news release may contain “forward-looking information”. Forward-looking
information and statements may include, among others, statements
regarding the future plans, costs, objectives or performance of Colt
Resources Inc. (the “Company”), or the assumptions underlying any of
the foregoing. In this news release, words such as “may”, “would”,
“could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”,
“plan”, “estimate” and similar words and the negative form thereof are
used to identify forward-looking statements. Forward-looking statements
should not be read as guarantees of future performance or results, and
will not necessarily be accurate indications of whether, or the times
at or by which, such future performance will be achieved.
Forward-looking statements and information are based on information
available at the time and/or management’s good-faith belief with
respect to future events and are subject to known or unknown risks,
uncertainties, assumptions and other unpredictable factors, many of
which are beyond the Company’s control. These risks, uncertainties and
assumptions include, but are not limited to, those described under
“Risk Factors” in the Company’s annual information form available on
SEDAR at www.sedar.com and could cause actual events or results to differ materially from
those projected in any forward-looking statements. The Company does not
intend, nor does the Company undertake any obligation, to update or
revise any forward-looking information or statements contained in this
news release to reflect subsequent information, events or circumstances
or otherwise, except if required by applicable laws.

PEA: ADDITIONAL CAUTIONARY NOTE
This note regarding the preliminary economic assessment (PEA) is in
addition to cautionary language already included within the news
release as required under NI 43-101. The PEA is preliminary in nature
and includes Inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to
them that would enable them to be categorized as mineral reserves, and
there is no certainty that the PEA based on these mineral resources
will be realized. Mineral resources that are not mineral reserves do
not have demonstrated economic viability.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

SOURCE COLT RESOURCES INC.

PDF available at: http://stream1.newswire.ca/media/2013/05/07/20130507_C4347_DOC_EN_26462.pdf


Source: PR Newswire