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Research Report Update

Colt Resources releases drill results for Banhos gold deposit

11/21/2012

By Steven Ralston, CFA

Colt Resources (TSXV:GTP.V) announced the assay results for 36 diamond drill holes from the Banhos, Chaminé and Casas Novas deposits at the Boa Fé gold project. Six of the 36 intersected two intervals of gold mineralization. The majority of holes (30 of 36) were drilled at Banhos.

The drilling campaign at Banhos began in August 2012 and was designed to confirm and expand historical drilling results. The drilling pattern is based on a 50 meter x 50 meter pattern that consists of both vertical and inclined holes. To date, the drilling has been more concentrated in the north western half of the deposit. The results will be used not only in the creation of a 3-D model of the gold deposit but also as part of the database for the updated NI 43-101 compliant resource estimate, which is expected to be completed during the first quarter of 2013. We already incorporate the mineralization at Banhos into our valuation model by utilizing historical estimates that we believe are valid despite not yet being NI 43-101 compliant.

Noteworthy high-grade assay results at Banhos include inclined hole (BFBH-12-023) intersecting 5.45 g/t gold over 2.00 meters and inclined hole (BFBH-12-033) intersecting 4.39 g/t gold over 5.30 meters. The longer low-grade intervals (all from inclined holes) were 1.33 g/t over 20.80 meters (BFBH-12-027), 0.76 g/t gold over 16.00 meters (BFBH-12-0235), 1.05 g/t over 15.10 meters (BFBH-12-031) and 1.25 g/t over 14.08 meters (BFBH-12-024).

At Chaminé, which is currently the most easily mineable deposit at Boa Fé, the results of four vertical drill holes were announced, of which two (BFCH-12-033 and BFCH-12-035) intersected over 4.7 g/t gold over 5 meters and one (BFCH-12-036) intersected 2.78 g/t over 15.16 meters.

Management continues to utilize the assay results of the drilling program to fine tune its structural interpretation of the gold mineralization hosted by the Boa Fé shear zone. The mineralization at all three deposits (Chaminé, Casas Novas and Banhos) appears to be associated with shallow dipping intrusive units, which are up to 20 meters thick. The most significant gold mineralization tends to occur in the kinks and fold hinges of these units.

We reaffirm our Outperform rating and price target of $1.70, which is based on an estimated share value of attributable resources.

To access a free copy of the full Colt Resources research report, please CLICK HERE.