Colossus Minerals Provides Development Update

TORONTO, ONTARIO--(Marketwired - Jul 15, 2013) - Colossus Minerals Inc. (the "Company" or "Colossus") (TSX:CSI)(OTCQX:COLUF) provides a development update for its 75% owned Serra Pelada gold-platinum-palladium Mine. The Serra Pelada Mine is a joint venture between Colossus and Cooperativa de Mineração dos Garimpeiros de Serra Pelada ("COOMIGASP") located in the State of Pará, Brazil.

HIGHLIGHTS

• Mining has progressed through the CMZ with both water and ground conditions being managed. However, recently some dewatering wells and pumps have not performed to design specifications. As a result, the Company has determined that additional dewatering capacity, which is currently being brought on line, is required to mine the CMZ in a sustainable, effective and efficient manner.
  
  
• As a result, mining activity through the Central Mineralized Zone ("CMZ") has been delayed and resources have been re-deployed to focus on infrastructure development and additional dewatering in order to keep the Company's plans of achieving 1,000 tonnes per day ("tpd") in the first quarter of 2014 intact. Infrastructure development in the red and gray siltstone is not impacted.
  
  
• The Company now anticipates a delay in gold production from the mine until late in the fourth quarter of 2013.
  
  
• Management is currently evaluating the amount and timing of additional funds required to address the impact of the delay in the ramp-up and otherwise continue development and construction of the Serra Pelada Mine.
  
  
• Underground development continues in the red and gray siltstone at better than anticipated daily development rates with three headings (main decline, ventilation expansion and northern mineralization access) currently being developed. The Company will continue developing mine infrastructure and expects to end the year with five access drifts ready to enter the CMZ late in the fourth quarter to commence production at 500 tpd.
  
  
• The ventilation expansion project remains on schedule.
  
  
• The Company anticipates commissioning the mill commencing in the third quarter with surface stockpiles of approximately 3,000 tonnes collected during the bulk sample program.
  
  
• Process plant construction is currently 87% complete. Structural steel erection is now 85% complete. Commissioning of the plant remains on schedule for later in the third quarter.
  
  

Claudio Mancuso, Chief Executive Officer commented, "Although the Company has managed ground conditions and water, the Company has determined additional dewatering capacity is required to mine the CMZ in a safe, sustainable, effective and efficient manner. Additional dewatering capacity has recently been brought on-line with additional capacity being mobilized continuously over the next 60 days. Although the Company has changed its mine plan and ramp-up schedule, management is confident that the additional dewatering capacity will enable the Company to achieve its plan of processing 1,000 tpd by the end of the first quarter of 2014."

CONSTRUCTION AND DEVELOPMENT ACTIVITIES

Underground Development

• Mining has progressed through the CMZ with both water and ground conditions being managed. However, recently some dewatering wells and pumps have not performed to design specifications. As a result, the Company has determined that additional dewatering capacity, which is currently being brought on line, is required to mine the CMZ in a sustainable, effective and efficient manner.
  
  
• As a result, mining activity through the CMZ has been delayed and resources have been re-deployed to focus on infrastructure development and additional dewatering in order to keep the Company's plans of achieving 1,000 tpd in the first quarter of 2014 intact. Infrastructure development in the red and gray siltstone is not impacted.
  
  
• The Company now anticipates a delay in gold production from the mine until late in the fourth quarter of 2013.
  
  
• The Company continues to make progress in its mine planning activities and has laid out (in the attached pictorial update) the month by month development which will take place between now and the end of 2013.
  
  
• The Company plans to continue the decline development to have multiple horizons ready for mining in 2014, continue with the ventilation upgrade and prepare five access drives to commence production late in the fourth quarter of 2013.
  
  
• The Company is currently fast-tracking its dewatering program expansion.
  
  
• Technical services to support continued advancement of the mining program are in place and are currently being supported by Hatch engineering.
  
  
• The ventilation expansion program is now in excess of 50% complete. Connection of underground drive to ventilation shaft expected in the third quarter.
  
  

Process Plant

The various phases of the process plant construction, along with respective percentages complete are presented in the table below.

Process plant construction is progressing as planned. Significant milestones achieved since the last development update include:

• The primary crusher area's structural steel, platework and associated equipment installation is approximately 95% complete. Electrical and instrumentation installations are approaching completion. Commissioning of the primary crusher is scheduled to occur in July.
  
  
• The reagent handling area's structural steel, platework and associated equipment installation is approximately 95% complete. Electrical and instrumentation installations are progressing.
  
  
• All of the structural steel and platework is currently on site with approximately 85% erected to date.
  
  
• Mechanical installations and structural steel erection in the grinding building are progressing well with this area now 75% complete.
  
  
• Significant progress has been made in erecting the conveyor systems. Conveyor belts are on site and installation will proceed during July prior to the start of commissioning.
  
  
• The primary screen, the scrubber, and a number of tanks have been installed in the Scrubbing & Screening building. Installation of pipe and electrical equipment has started.
  
  
• Civil construction of the gold room is complete and this area has been turned over to the mechanical contractor. Erection of tanks and other mechanical installations in the gold room area are progressing. Commissioning of this area is scheduled for late August.
  
  

Infrastructure

Other infrastructure construction is progressing as planned. Significant milestones achieved since the last development update include:

• The power house is now 100% complete and commissioned. Connection to the grid is expected by the end of July. The Company is currently running two of the four generators and electrical reticulation across the project site is substantially complete.
  
  
• Construction of tailings dam has been advanced. The total construction is now 40% complete with the spillway wall formwork and rebar progressing as planned. The cut-off excavation is now finalized, the horizontal filter has been installed and the dam foundation is in place. The tailings dam is expected to be ready in conjunction with the start of mill commissioning.
  
  
• Widening of the ventilation shaft is also progressing on schedule. A three-fold increase in air volume to the underground operations is expected by the end of the third quarter with an additional two-fold increase in air volume occurring in the fourth quarter.
  
  

To view the CSI Construction update, please visit the following link: http://media3.marketwire.com/docs/CSI_Construction_Update_July_Final.pdf.

About Colossus:

Colossus is a development-stage mining company focused on bringing its 75% owned Serra Pelada gold-platinum-palladium Mine into production. The Serra Pelada Mine is a joint venture between Colossus and COOMIGASP located in the State of Pará, Brazil. Serra Pelada, located in the mineral prolific Carajas region in the State of Pará, 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. Colossus Minerals Common Shares, warrants and notes trade on the Toronto Stock Exchange (TSX) 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.

Qualified Person:

David Anthony, P. Eng., President and Chief Operating Officer of Colossus, is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.

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 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. Forward-looking statements include, but are not limited to, statements related to activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, statements related to the Company's exploration and development plans, activities and intentions; additional funding requirements; the timing of commencing production; expected mining rates; and when such mining rates are expected to be achieved. 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 known and unknown risks, 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 (including the required dewatering capacity) 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 the additional funds currently required by the Company (there being no assurance that such additional funds will be available on terms acceptable to the Company, if at all) and funds that may be required 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.