Colossus Resources to Acquire Calvario and Mirador Projects in Chile from Austral Gold

Colossus Resources Corp. (“Colossus” or the “Company”) (TSX-V: CLUS) has entered into a Letter of Intent (LOI) dated April 5, 2023, with Austral Gold Limited and its subsidiaries Minera Mena Chile Ltda and Revelo Resources Corp., marking a significant step towards acquiring a 100% interest in the Calvario and Mirador projects in the Republic of Chile. In response to this development, Colossus has requested a trading halt, which will remain in effect until lifted by the TSX Venture Exchange.

The Calvario and Mirador projects are strategically located approximately 80 km northeast of La Serena, a coastal city in the Coquimbo Region of central-northern Chile, South America. Positioned within a highly prolific region known for porphyry copper systems, the exploration targets within these projects hold significant potential for copper, molybdenum, and gold mineralization. Situated along the southern extensions of the Paleocene magmatic belt of northern Chile, which hosts several major copper and precious metals deposits, including Spence, Cerro Colorado, Sierra Gorda, and Relincho/Nueva Reunion, the Calvario and Mirador projects offer a promising investment opportunity.

The projects encompass a strategic land position with multiple copper targets controlled by regional thrust faults. Notably, they are situated approximately 115 km south of the Relincho/Nueva Reunion Joint Venture advanced project, a significant copper-gold-molybdenum project in the Americas jointly owned by Teck Resources Limited and Newmont Corporation.

The Calvario Project spans 6,870 hectares and comprises 28 titles, with a portion subject to base metals and precious metals net smelter royalties (NSRs) in favor of Mineral Global Copper Chile S.A. The Mirador Project, covering 7,744 hectares, consists of 31 titles, with certain portions subject to NSRs in favor of Mineral Global Copper Chile S.A. and Sumitomo Metals Mining Chile Ltda.

Ioannis (Yannis) Tsitos, Technical Director at Colossus, comments, "Through this acquisition, Colossus Resources consolidates a substantial and strategic position in mineral rights within one of the most promising yet underexplored belts in central-northern Chile, known for its significant copper and precious metals deposits. The projects offer excellent access for year-round fieldwork, presenting an exceptional opportunity for the Company. Pending the successful conclusion of Definitive Agreements and regulatory approval, Colossus eagerly anticipates collaborating closely with Austral Gold and its seasoned technical team to propel the Calvario and Mirador projects towards significant copper (± Mo ± Au) discoveries. This collaboration will position Austral Gold as the largest single shareholder of Colossus."

Per the terms of the LOI, Colossus commits to funding exploration expenditures of not less than USD$2.5 million over two years, with a minimum of USD$1.5 million to be incurred in the first 18 months. Additionally, the Company will issue common shares to Minera Mena Chile Ltda, or its nominee, equivalent to 19.9% of the post-issuance shares outstanding, along with one million share purchase warrants. The Company has paid USD$100,000.00 to Austral Gold Limited upon the execution of the LOI, with provisions for refund should a definitive option agreement not be reached by May 30, 2023.

Moreover, the transaction is subject to regulatory approvals, including acceptance by the TSX Venture Exchange and, if necessary, shareholder approval. With the potential acquisition of the Calvario and Mirador projects, Colossus aims to strengthen its position in Chile's mineral exploration sector and deliver value to its stakeholders through strategic growth initiatives.