Sep 30, 2009 16:50 ET

Colossus Minerals Inc. Announces CDN$57,500,000 Bought Deal Financing

TORONTO, CANADA--(Marketwire - Sept. 30, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Colossus Minerals Inc. (TSX:CSI) (the "Company" or "Colossus") announced today that it has entered into an agreement with a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. (the "Lead Underwriter") and including Thomas Weisel Partners Canada Inc., Canaccord Capital Corporation, and GMP Securities L.P. (together with the Lead Underwriter, the "Underwriters"), with PowerOne Capital Markets Limited to act as a selling group member. The Underwriters have agreed to purchase, on a bought deal basis, 10,000,000common shares (the "Common Shares") of the Company, at a price of CDN$5.75per Common Share (the "Offering Price") for aggregate gross proceeds to Colossus of CDN$57,500,000 (the "Offering").

The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 1,500,000Common Shares at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional CDN$8,625,000 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be CDN$66,125,000.

The Common Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, except Quebec.

The net proceeds are intended to be used to fund expenditures on the Serra Pelada project and other exploration activities and for general working capital and corporate purposes.

The Offering is expected to close on or about October 22, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Colossus Minerals Inc. (TSX:CSI)

Colossus is a minerals development company focused on gold and platinum group metals in Brazil. The Company is currently focusing its efforts on the high grade gold-platinum-palladium Serra Pelada project in Para State, Brazil. Between 1980 and 1986 Serra Pelada was host to the largest precious metals rush in Latin American history. Coverage by 60 Minutes of this famous mining rush can be viewed at the following link: http://sixtyminutes.ninemsn.com.au/article.aspx?id=299887.

On Behalf of the Board of Directors

COLOSSUS MINERALS INC.

Ari Sussman, Chief Executive Officer and Chairman

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States or to U.S. persons except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to an exemption therefrom. Accordingly, this news release does not constitute an offer for sale of securities in the United States.

For more information, please contact

Colossus Minerals Inc.
Ari Sussman, Suite 2500, 130 King Street West
Toronto, Ontario, Canada, M5X 1A9
(416) 643-7655
(416) 643-3890 (FAX)
Email: info@colossusminerals.com
Website: www.colossusminerals.com