MONTREAL, Aug. 24, 2011 /PRNewswire/ – Colt Resources Inc. (“Colt” or
the “Company”) (TSXV: GTP) (FRA: P01) (OTCQX: COLTF) is very pleased to
announce that one of its Portuguese wholly owned subsidiaries has
acquired through the purchase of a private Portuguese limited company
key surface rights covering approximately 140 hectares at its Tabuaço
(São Pedro das Águias) tungsten project, located in the company’s
Armamar‐Meda concession in northern Portugal.

“The acquisition of these surface rights not only provides Colt with
unhindered access to the ground for exploration but more importantly,
it is a crucial step for the next stages of the development of our
Tabuaço tungsten project which we will be fast-tracking in the months
ahead.” stated Nikolas Perrault, President and CEO.

On August 24, 2011, the Company executed a purchase and sale agreement
and has acquired 100% of the shares of Q.S.P.A, a Portuguese sole
proprietorship limited company consisting of surface rights, an
operational business and real estate in an arm’s length transaction for
a total acquisition cost of 10M Euros. The surface rights are the main
asset and the intrinsic value of the transaction as it is key to the
Company’s planned development of this tungsten mining project. The
operational business of Q.S.P.A. is a registered as an Oporto and Douro
wine producer, trader, importer/exporter and bottler. Q.S.P.A was put
up for sale about one year ago. The value of Q.S.P.A. is real estate
consisting of land, buildings (the monastery, the winery and the
cellar), valued independently for an aggregate of 4.5M Euros as well as
inventories valued at 2.5M Euros. Q.S.P.A.’s unaudited statements as of
May 31, 2011, show total assets of 12.7M Euros and total liabilities of
approximately 8.9M Euros, of which 8.1M Euros is a shareholder loan and
which Colt’s wholly owned subsidiary will become the beneficiary.
Unaudited revenues and losses for the last fiscal year are 189K and 67K
Euros respectively and for the period ending May 31, 2011 revenues are
1K Euros with losses of 274K Euros. The Company will maintain the
seasonal employment of the business but will subcontract out the
management.

The Company will be paying a combination of cash and shares for these
assets. The cash component consists of 5M Euros of which 3M Euros have
been paid on closing. The balance of 2M Euros will be paid, in two
instalments of 1M Euros, on the first and second year anniversary of
the acquisition. The Company has also issued 5M restricted common
shares to the seller, with each 1M common shares to become freely
tradable on the date of each anniversary of the date of closing for the
next five consecutive years. The Company has also issued 5M zero
dividend, convertible preferred shares to the seller. Each zero
dividend, convertible preferred share has a par value €0.50, a five
year term. The preferred shares are convertible at the option of the
holder at any time during the five year term, in whole or in part, into
common shares of Colt at €0.57 per share, resulting in a potential
issuance of an additional 4,385,965 common shares. The convertible
preferred shares are also redeemable by Colt at its option on thirty
day notice at €0.50 per share, in whole or in part, at any time during
the five year term. If converted into common shares, the shares will be
subject to the same five year restrictions as the common shares issued
as part of this transaction. Upon closing the transaction, the seller
has not become an insider of the Company.

The Company received independent evaluations of the business from
FundBox SGFII S.A., Mr. Hugo de Oliveira e Silva and Taxlibris
Contabilidade e Consultoria, dated May 2011, July 18, 2011 and July 22,
2011 respectively.

About Colt Resources Inc.

Colt Resources Inc. is a Canadian junior exploration 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 second largest
lease holder of mineral concessions.

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 revised
annual information form dated April 20, 2011 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. 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.