Colossus Minerals Inc. 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 located in the State of Pará, Brazil. As of September 19, 2013, the company had completed approximately 2,200 metres of total development; 1,400 primary and 800 metres of secondary development.

In August, the company completed 85 metres of development over a 24 day period advancing on four separate faces. The company ceased development for a seven day period to complete the first phase of the ventilation system expansion (discussed below). The 85 metres of development in August consisted of 37 metres in the main decline, 30 metres of secondary excavation for a permanent pumping station, three metres in the northern access and 15 metres in the ventilation access drift and other secondary development.

Over the 24 day period prior to the shutdown to complete the ventilation system expansion, the company averaged approximately 3.5 metres per day. Some dewatering wells and pumps were not performing to design specifications and, as a result, the company required additional dewatering capacity in order to mine the Central Mineralized Zone ("CMZ") in a sustainable, effective and efficient manner. As a result, the company is expanding its dewatering capacity.

As of September 17, 2013, six of the originally planned ten wells are pumping and total dewatering output is approximately 800 m3 per hour. Currently, total output exceeds the recharge rate by approximately 75% and total output is expected to reach approximately 1,500 m3 per hour by December 2013. A new 250 m3 per hour well is currently being drilled and is expected to be operational by the end of October.

To provide additional contingency, the company has recently initiated an additional 250 m3 per hour well. Contractors have been mobilized and the additional well will be operational by the end of December. Since the previous development update, the Company has also decided to refurbish three of the original wells which were planned to be abandoned.

These three refurbished wells will provide an additional 100 m3 per hour of contingency capacity. Excavation for a permanent underground pumping station was completed in August and civil work and mechanical installation will continue throughout the end of September and early October. Once completed, the permanent pumping station will provide 800 m3 per hour of pumping capacity from underground, which is over three times the current underground inflow of 250 m3 per hour.

The expansion work includes widening and concrete lining the artisanal shaft which will be used as a ventilation raise and development of a drift to tie the ramp to this ventilation raise at depth. The project to upgrade the ventilation system is approximately 55% complete. The first phase of the ventilation system expansion was completed in August.

The first phase involved moving vent fans from surface to the current ramp access to the artisanal shaft, and civil works involved with installing the fans in this new location. This first phase expansion has increased airflow underground from 10m3/s to 45m3/s by drawing air through the artisanal shaft with increased fan and reticulation capacity. This first phase expansion allows the company to begin ramping-up development crews and equipment to remain on track with its previously disclosed development objectives.

The company anticipates it will begin feeding the process plant late in the fourth quarter of 2013 and continues to make progress in its mine planning activities.