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Press release from Marketwire

Colossus Minerals Provides Update on Exploration on Elefante Area

Monday, August 20, 2012

Colossus Minerals Provides Update on Exploration on Elefante Area06:01 EDT Monday, August 20, 2012TORONTO, ONTARIO--(Marketwire - Aug. 20, 2012) -Colossus Minerals Inc. (the "Company" or "Colossus") (TSX:CSI)(OTCQX:COLUF) is pleased to announce assay results from the auger drilling program on the Elefante Area located at its 75% owned Serra Pelada Gold-Platinum-Palladium Project. The Serra Pelada Project is a Colossus-COOMIGASP joint venture located in the State of Pará, Brazil. HIGHLIGHTS All of the assay results have now been received from the auger testing program conducted to define targets for the diamond drilling program to be conducted in the fourth quarter of 2012. Seventy-three auger holes were drilled to depths that ranged in length from two to nine metres. The final assay results of this auger drilling program returned the following highlights:SPTRD-135 returned values of 13.08 g/t platinum and 4.19 g/t palladium from 0.5 to 1.0 metre below surface. SPTRD-160 returned values of 4.40 g/t gold from 1.5 to 2.0 metres below surface. SPTRD-169 returned values of 8.70 g/t gold from 1.5 to 2.0 metres below surface. Claudio Mancuso, President & CEO of Colossus commented, "The results of the auger drilling program highlight the potential of the Elefante Area and demonstrate Elefante's value as a target for diamond drilling. We are excited to be able to commence diamond drilling later this year as the high grade intercepts in soils close to surface could have immediate economic potential." DETAILS The most recent phase of auger drilling was designed to fine-tune the targeting of a trend of mineralization identified in the previous phase of auger drilling. This mineralization trend returned encouraging results from near surface soil samples down to the saprolite portion of the hole just above the presumed bedrock. The latest results continue to demonstrate that the soil contains local pockets of high grade precious metal mineralization. The previously released results highlighted a 10.5 metre long interval that returned 0.64 g/t Au, 0.12 g/t Pt and 0.08 g/t Pd from auger hole SPTRD-090 (see press release dated March 12, 2012 for more details). This was a follow-up to an earlier phase of testing that highlighted holes SPTRD-016 that returned a 5.5 metre interval of 0.20 g/t Au, 0.53 g/t Pt and 0.45 g/t Pd from the saprolite and SPTRD-017 that contained 124.78 g/t Au, 6.52 g/t Pt and 7.67 g/t Pd from a 0.50 metre soil sample interval (see press release dated November 14, 2011 for more details). As noted above, a total of 73 additional auger holes were drilled in the final phase of auger drilling in this area (see figures 1 and 2 attached). The results are highlighted in Table 1 below and add to the interpretation of the anomalous samples identified in the previous phases of auger drilling over this area. The resulting interpretation shows a broad low grade east-west trending halo predominantly coming from soil samples of the regolith. There are two higher grade clusters within this broad anomaly, the southernmost of which is associated with the holes that have encouraging precious metal results in the saprolite (see figure 3 attached). Diamond drill testing in the area will commence on the mineralized trend of which these three holes are a part. This work will help identify whether the high grade soil assay results are bedrock sourced. TABLE 1: AUGER DRILLING RESULTS AreaAuger-hole IDFrom (m)To (m)Interval (m)Gold (g/t)Platinum (g/t)Palladium (g/t)LithologyElefanteSPTRD-1271.52.00.500.081.261.66soilElefanteSPTRD-1350.51.00.50.2013.084.19soilElefanteSPTRD-1601.52.00.54.400.100.11soilElefanteSPTRD-1691.52.00.58.700.010.06soilElefanteSPTRD-1710.00.50.51.670.010.04soilElefanteSPTRD-1921.52.00.51.040.010.02soilElefante Area GeologyThe Elefante Area is located approximately two kilometres southeast of the Serra Pelada Au+Pt+Pd deposit (see Figure 1 in this release). The host rock in this area consists of Archean aged (2.68 billion year old) sediments belonging to the Rio Fresco Formation which also hosts the Serra Pelada orebody. Outcrops of siltstone found in the Elefante area physically resemble those found in the pit wall of the historic Serra Pelada open pit but lack the classic reddish color of the oxidized sediments. The siltstone found in the Elefante area is a light to medium grey color. Diamond Drilling The first phase of drilling will consist of approximately 500 metres of HQ caliber drilling and will test for the bedrock source of the saprolite enriched auger drill holes as well as test the fold of the sedimentary package for signs of carbon upgrading similar to that which is found in the high grade Central Mineralized Zone at the Serra Pelada Mine. Technical Information Auger sampling is conducted using a mechanical auger. Sampling of the drilled material (by Colossus personnel) and sample preparation (by Intertek Limited, Parauapebas and/or SGS Geosol, Parauapebas, Brazil) were carried out under strict protocols recommended in the National Instrument 43-101 Technical Report dated January 31, 2010 on the Serra Pelada Project. After photographing and logging, the sampled intervals (drilling advances, averaging half a metre in length) were cut and/or split in half, yielding samples of two to three kilogram mass. Where sample recoveries were low, intervals were composited to yield approximately one kilogram minimum sample masses. Intertek and SGS Geosol pulverize one or two kilogram splits (>95% passing 106 microns) from the crushed (>95% passing 1.7 mm), dried samples. Duplicates, blanks and certified gold-PGE reference materials were inserted in the sample train by Colossus personnel prior to Intertek preparation work. The labs insert additional blanks, duplicates and high grade gold/PGE reference materials in the assay stream and replicate or duplicate assays were performed routinely and on most medium- to high-grade materials. Fire assays for gold, platinum and palladium were on 25 gram subsamples utilizing a lead-rich collector material and AA finish. The Intertek and SGS Geosol assay results for blanks, duplicates, replicates and also all reference materials were well within generally accepted QA/QC measures. A 200 gram aliquot of medium and high grade pulps were rotary split from each pulp by Intertek and SGS Geosol and one of these samples was securely shipped directly by Intertek to Genalysis Limited, Perth Laboratory for check assaying. A similar procedure is used for samples assayed at the SGS Geosol lab with the samples being securely transported to the Intertek lab in Parauapebas, Brazil for check assaying. Graham Long, Vice President, Exploration of Colossus, is a qualified person under National Instrument 43-101 and is responsible for this release and has verified the contents disclosed. About Colossus: Colossus is a development-stage mining company focused on bringing its Serra Pelada project into production. Serra Pelada, located in the mineral prolific Carajas region in the State of Pará, Brazil, is host to one of the highest grade gold and platinum group metals deposits in the world. Between 1980 and 1986 Serra Pelada was host to the largest precious metals rush in Latin American history. Coverage of this famous mining rush by 60 Minutes can be viewed by following the link below. Colossus Minerals shares, warrants and notes trade on the Toronto Stock Exchange under the symbols CSI, CSI.WT.A and CSI.NT respectively and in the United States its Common Shares trade on the OTCQX under the symbol COLUF. The Company is headquartered in Toronto, Canada. http://sixtyminutes.ninemsn.com.au/article.aspx?id=299887 CAUTIONARY STATEMENT REGARDING FORWARD‐LOOKING INFORMATION Forward-looking statements in this press release include statements regarding the timing and nature of future exploration and development programs that are dependent on projections that may change as drilling continues, or if unexpected ground conditions are encountered. The Company does not currently have any mineral properties that are in production or that contain a reserve as defined by National Instrument 43-101. In addition, areas of exploration potential are identified which will require additional drilling to determine whether or not they contain similar mineralization to areas that have been explored in more detail. Significant additional drilling is required at Serra Pelada to fully understand system size. Except for statements of historical fact relating to Colossus, certain statements in this press release relating but not limited to the Company's exploration and development plans, activities and intentions, constitute "forward‐looking information" within the meaning of the Securities Act (Ontario) or "forward‐looking statements" within the meaning of the United States Private Litigation Reform Act of 1995. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. Forward‐looking statements are frequently characterized by words such as "target", "plan", "expect", "project", "intend", believe", "anticipate" and other similar words, or statements that certain events or conditions "appear to", "may" or "will" occur. Forward‐looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward‐looking statements. The factors include but are not limited to risks related to the joint venture operation, actual results of exploration activities, the inherent risks involved in the exploration and development of mineral properties, changes in project parameters as plans continue to be refined, delays in obtaining government approvals, the uncertainties of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties inherent to conducting business in Brazil and the rest of Latin America, the availability of equipment and supplies, unexpected adverse climate conditions, the reliance on only a few key members of management, as well as those factors discussed in the section entitled "Risk Factors" in the Company's most recent Annual Information Form filed with Canadian provincial securities regulatory authorities and other regulatory filings which are posted on SEDAR at www.sedar.com. Unless required by law, Colossus undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward‐looking statements.To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/Elefante_Location_Map_Anomalies.pdf .To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/Elefante_Auger_Hole_Location_Map.pdf .To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/Elefante_Grade_Isocontour_Map_AuPtPd.pdf .FOR FURTHER INFORMATION PLEASE CONTACT: Ann WilkinsonColossus Minerals Inc.VP, Investor Relations Colossus Minerals Inc.(416) 643-7655awilkinson@colossusminerals.comwww.colossusminerals.com