Colossus Minerals Updates on Development Activities at Serra Pelada Project, Brazil

Colossus Minerals Inc. (TSX:CSI) has provided an update on development activities at the Serra Pelada Gold-Platinum-Palladium Project, the Colossus-COOMIGASP joint venture located in Para State, Brazil.

HIGHLIGHTS:

• 3,500 metre underground decline in progress, 83 metres complete
• Two Voest-Alpine roadheaders are in operation cutting the decline
• Condemnation and site preparation drilling complete; focus shifting back to exploration
• Earthworks progressing on site infrastructure including future plant site, camp site, maintenance facilities and offices
• Negotiations underway for permanent electrical power to the site
• Advancing plans for engineering and design of mill facility

Serra Pelada 2010 Development

In the first half of 2010, Serra Pelada Companhia de Desenvolvimento Mineral ("SPC"), the Colossus-COOMIGASP joint venture company was granted environmental and mining licenses for Serra Pelada paving the way for development activities to commence (see press releases dated April 16, 2010 and May 7, 2010). Given the difficulties in drilling the Serra Pelada orebody at tight spacing from surface, the company embarked on an ambitious underground strategy and commenced development of a 3,500 metre decline to provide underground drilling platforms and access to the orebody for evaluation and future production.

Development of the portal commenced September 15, 2010 and by November 25, 2010 the portal was complete and 83 metres of the decline had been developed by Colossus personnel. The Company anticipates that the 3,500 metre development program will take 12 to 15 months to complete. Colossus has completed earthworks on other site infrastructure including a future plant site, camp site, maintenance facilities and offices. Construction of the permanent main site office was completed in October 2010 and construction of a mine maintenance facility has commenced.

In order to speed up the decline development, Colossus received delivery of two Voest-Alpine road headers in November 2010. The units are now in operation and are performing as expected with eight metres of unsupported excavation achieved in the first ten-hour shift. Rock conditions encountered to date in the decline are exceeding expectations.

Randy Reichert, Colossus President and Chief Operating Officer commented, "The Serra Pelada Project has advanced significantly during the second half of 2010. The Project is now fully permitted, with the receipt of both the environmental and mining licenses, the underground decline development is well underway and there are over 250 employees working aggressively on all of our various development initiatives. The Project is quickly taking shape and we are looking forward to complementing our existing surface drill program with the commencement of underground drilling in the first half of 2011."

Development Milestones for 2011

Mr. Reichert continued, "2011 will be a transformational year for Colossus, driven by the achievement of several important milestones squarely focused on advancing our development plans."

1. Construction of a 200-person camp commenced in early November 2010 with completion expected early in the first quarter of 2011.

2. Engineering of the tailings impoundment has commenced with Golder Associates (Brazil) selected as the consultant for the engineering and site investigations, and geotechnical drilling is underway. Completion is expected in the first quarter of 2011.

3. Construction of the Phase 1 tailings dam is scheduled to start in March 2011 and is expected to be complete by the fourth quarter of 2011.

4. Hydrological engineering was recently completed by Australasian Groundwater and Environmental Consultants Pty Ltd (Brisbane) and dewatering of the arenites surrounding the orebody has commenced. It is anticipated that Phase 1 dewatering to a depth of 150 metres will be completed in the third quarter of 2011, with Phase 2 dewatering to a depth of 320 metres expected to be complete by the second quarter of 2012.

5. Negotiations for permanent electrical power to the site are progressing with Centrais Elétricas do Pará – S.A. – CELPA, the regional power supplier.

6. Plans to advance engineering and design of a mill facility are underway.

Source: Colossus Minerals Inc.