Colorado Closes Strategic Investment by Goldcorp to Fund Additional Exploration

WEST KELOWNA, BRITISH COLUMBIA--(Marketwired - Aug. 31, 2017) -

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COLORADO RESOURCES LTD. (TSX VENTURE:CXO) ("Colorado" or the "Company") is pleased to announce that, further to its news release of August 4, 2017, the Company has closed the non-brokered private placements (the "Placements") of 10,000,000 units (the "Units") at an issue price of $0.26 per Unit and 12,720,000 flow-through units (the "FT Units") at an issue price of $0.365 per FT Unit for aggregate gross proceeds of $7,242,800.

Each Unit consisted of one common share in the capital of the Company (a "Common Share") and one-half of one non-transferable Common Share purchase warrant. Each whole warrant (a "Warrant") entitles the holder to acquire an additional Common Share at an exercise price of $0.45 until February 29, 2020.

Each FT Unit consisted of one common share in the capital of the Company that qualifies as a flow-through share for purposes of the Income Tax Act (Canada) (a "FT Share") and one-half of one Warrant.

The Company has paid aggregate cash finder's fees in connection with the Placements of $190,268.

Proceeds from the FT Units will be used by Colorado to incur eligible Canadian exploration expenditures to expand the 2017 exploration program. Colorado will renounce the qualifying expenditures to subscribers of the FT Units for the fiscal year ended December 31, 2017. Proceeds from the sale of Units will be used for general corporate purposes.

In connection with the Placements, Goldcorp Inc. ("Goldcorp") received the right to maintain its pro-rata ownership percentage in Colorado during future financings. This right will entitle, but not obligate Goldcorp to participate in any future equity financings by Colorado to the extent necessary for Goldcorp to maintain a 19.95% equity ownership interest in the issued and outstanding common shares of Colorado. Goldcorp's right to participate in future financings will terminate if its equity interest falls below 7.5% of the issued and outstanding common shares of Colorado. Goldcorp will also have a right to match non-equity financing and tolling arrangements related to future exploration or development on the KSP property and any BC properties Colorado expends the Goldcorp use of proceeds.