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BRON.V ·

Colorado and Damara Terminate Option to Acquire Kinaskan-Castle Property

Mergers & Acquisitions Property Options & Staking

Colorado Resources Ltd.

#110 - 2300 Carrington Road www.coloradoresources.com Tel: (250) 768-1511

West Kelowna, British Columbia Fax: (250) 768-0849

V4T 2N6 Canada Toll Free: 1 (855) 768-1511AC/5834892.2

NEWS RELEASE

COLORADO AND DAMARA TERMINATE OPTION

TO ACQUIRE KINASKAN-CASTLE PROPERTY

December 15, 2017 TSX-V: CXO, DMR

Colorado Resources Ltd (“Colorado”) (TSX-V:CXO) and DAMARA GOLD CORP. (TSX -V:DMR) (“Damara")

announce that, further to their joint news release of November 20, 2017, the parties have mutually agreed to

terminate the letter agreement (the “ Agreement”) whereby Colorado granted Damara the option to acquire a

100% interest (the “Transaction”) in Colorado’s Kinaskan-Castle project (the “K-C Property”) located in the Liard

Mining Division within the “Golden Triangle Area” of northwestern British Columbia.

As described in the news release of November 20, 2017 , Colorado had initiated a preliminary exploration program

on the K-C Property, which includes the collection of 859 soil and 201 rock samples, 10 km2 of geological mapping,

an 11-line km I.P. survey and a 150 -line km airborne magnetic survey, and will release the results of this work

program once integrated into the geological, geochemical and geophysical databases and approved by Colorado's

board of directors.

About Damara

Damara Gold Corp. is a TSX Venture listed Canadian public company with a Board of Directors seasoned in the

mineral exploration industry and with a record of mineral deposit discovery worldwide

About Colorado

Colorado Resources Ltd. is currently engaged in the business of mineral exploration for the purpose of acquiring and

advancing mineral properties located in the “Golden Triangle” British Columbia and holds approximately 1,200km2 of

mineral claims in the Golden Triangle. The Company’s main exploration projects within British Columbia include KSP and

North ROK. Additionally the Company holds an option to acquire a 100% interest in the Greensprings project located in

Nevada

ON BEHALF OF THE BOARD OF DIRECTORS ON BEHALF OF THE BOARD OF DIRECTORS

DAMARA OF COLORADO

"William Yeomans" “Adam Travis”

William Yeomans Adam Travis

Director President and Chief Executive Officer

For additional information see For additional information see

Damara's website www.damaragoldcorp.com Colorado's website www.coloradoresources.com

or contact: or contact:

Damara Gold Corp. Colorado Resources Ltd.

William Yeomans Adam Travis

Ph: (250-768-1168) Ph: (250-768-1511)

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.

Statements Regarding Forward-Looking Information

Certain statements contained in this news release may contain forward-looking information within the meaning of

Canadian securities laws. Such forward-looking information is identified by words such as “estimates”, “intends”,

“expects”, “believes”, “may”, “will” and include, without limitation, statements regarding the Colorado’s or

Damara's plans or business operations (including plans for progressing assets), estimates regarding mineral

resources, projections regarding mineralization and projected expenditures. There can be no assurance that such

statements will prove to be accurate; actual results and future events could differ materially from such statements.

Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the

mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply

risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of

Colorado and Damara. Investors are cautioned not to put undue reliance on forward-looking information. Except as

otherwise required by applicable securities statutes or regulation, Colorado and Damara expressly disclaim any

intent or obligation to update publicly forward-looking information, whether as a result of new information, future

events or otherwise.