TORONTO, ONTARIO--(Marketwire - March 7, 2011) - Colossus Minerals Inc. (the "Company" or "Colossus") (TSX:CSI - News) is pleased to provide an update on development activities at the Serra Pelada Gold-Platinum-Palladium Project, the Colossus-COOMIGASP joint venture located in Para State, Brazil.

The Company has agreed to purchase a ball mill and related equipment for a total cost of approximately US$620,000, which represents a greater than $2 million savings when compared with purchasing new equipment. The equipment is located in Para State, Brazil in the Carajas region approximately 100 kilometres (200 kilometres by road) from Serra Pelada and is in excellent condition. Closing of the acquisition is expected to take place on or about March 15, 2011 and delivery to site will occur in the following 90 days.

Additionally, Colossus is pleased to announce that it has finalized plans to extract an initial 2,500 tonne bulk sample from the upper portion of the Central Mineralized Zone ("CMZ"). The aim of the bulk sample is to characterize the distribution of mineralization across different sections of the upper portion of the CMZ. The material extracted in the bulk sample will include various mineralized sub-zones of the CMZ (i.e SPD-007: 25.80 metres @ 11.66 g/t gold, 12.07 g/t platinum and 18.34 g/t palladium) and the upper limb zone (i.e SPD-047: 5.00 metres @ 59.42 g/t gold, 5.46 g/t platinum and 9.07 g/t palladium). The bulk sample will commence during the first quarter of 2012. Also, the Company anticipates that two additional 2,500 tonne bulk samples will be extracted during 2012, covering both the middle and lower portions of the CMZ once underground development and dewatering provide access to these locations.

Randy Reichert, President and COO stated, "The equipment acquisition secures a key component for the development of the Serra Pelada Project and will not only provide significant savings to the overall capital expenditures of the project, but more importantly will save a substantial amount of lead-time compared to purchasing similar equipment elsewhere, which would normally require up to twelve to eighteen months of delivery time. In addition, the purchase achieves an important step towards the Company's stated objective of seeing the project commence phase 1 production in 2012."

2011 DEVELOPMENT MILESTONES UPDATE:

--  The Company's 25,000+ metre Phase IV surface exploration drill program
    is well underway following numerous delays due to unforseen variables
    experienced during the first quarter of 2011. A second deep penetrating
    drill rig has arrived at site and is expected to accelerate exploration
    drilling of the CMZ extensions. A total of five drills are now in full
    operation on the property and the Company is planning to add more drill
    rigs in the coming months. Initial targets being tested (see figure 1)
    are the CMZ extensions, the up-plunge extension of the GT Zone to
    determine whether or not the GT Zone and the Western Zone are in fact
    one single zone, the Portal Zone and other targets situated between the
    CMZ and the Portal Zone (approximately 800 metres of strike length).  
    
--  The 3,500 metre underground decline is progressing as planned, with well
    over 200 metres now complete. In April 2011, a new shotcrete jumbo and
    rockbolter will be delivered to the project and expectations are that
    underground development will accelerate significantly to an approximate
    advance rate of 10 metres per day. Completion of the decline is
    anticipated in the second quarter of 2012. 
    
--  The Company has placed a purchase order for two underground diamond
    drills. Underground drilling on the first of many targets is scheduled
    to commence during the summer of 2011. More underground drills may be
    purchased at a later date as well. 
    
--  Construction of a 200-person camp commenced in early November 2010 with
    completion expected early in the second quarter of 2011. The camp
    cafeteria is already in operation. 
    
--  Construction of the tailings starter dam is scheduled to begin in May
    2011 and is expected to be complete by the fourth quarter 2011. 
    
--  Dewatering has commenced with more than half of the wells completed.
    Installation of the dewatering pumps will start before the end of March
    2011. It is anticipated that dewatering to a depth of 320 metres will be
    complete by the second quarter of 2012. 
    
--  Process plant engineering and design continues to progress. Construction
    of the process plant is expected to begin in the third quarter of 2011
    and is expected to be complete in the third quarter of 2012. 

To view figure 1, please visit the following link: http://media3.marketwire.com/docs/CSI0307fig1.pdf

Technical Information:

Dr. Vic Wall, the Company's VP Exploration and a qualified person under National Instrument 43-101, is responsible for this release and has verified the contents disclosed.