Columbus Energy Limited: Agreement Reached to Acquire 'El Paredon' Mineral Deposits in Spain

Douglas Scheving, CFO and Corporate Secretary is pleased to report that Columbus
Energy Limited, ("CEL" or the "Company") (TSX VENTURE:CEL) has entered into an
agreement with Jacqueline Halliday whereby the Company has acquired the right to
purchase a 99.9% interest in Minera de Rio Guadiato S.L. ("Minera") which owns
the right to 100% of the El Paredon mineral rights in the La Nava-El Paredon
Mineral Concession, which is located in the north western part of Cordoba
Province, and some 50km north west of the provincial capital Cordoba. 


The consideration to be paid for 99.9% of the shares of Minera (Spanish law
requires that a Spanish national has 0.1% of the shares) is $230,000 in common
shares of the company at a deemed price of $0.05 per share and a 2.5% Net
Smelter Return. This is a non-arms length transaction. This is the historic cost
of acquisition, holding costs, and exploration and development of the project.


The Mineral Concession is located towards the north western end of the "Eje
Magmatica" (Magmatic Axis), a belt of Lower Carboniferous volcano-sedimentary
strata with important Hercynian intrusives. Felsic tuffs within this belt host a
small but relatively high-grade, near-surface polymetallic volcanogenic sulphide
deposit at El Paredon which is situated within the Mineral Concession.


The El Paredon deposit is hosted by the volcano-sedimentary strata of the
Erillas Volcanic Complex. It is situated on the western flank of the shallow
Nava-El Paredon Syncline.


At El Paredon, the basal carboniferous sedimentary sequence is overlain by a
lower sequence of felsic tuffs, lavas and agglomerates. This felsic volcanic
sequence, is in turn, overlain by a series of hybrid breccias and tuffs of
felsic to intermediate composition. The hybrid volcanic sequence is, in turn,
overlain by a second series of felsic tuffs in a restricted area in the axial
zone of the syncline. The second sequence has been, by and large, eroded.


At the top of the lower sequence of the felsic tuffs, there is a horizon of
dark-coloured tuffaceous shales. This horizon is frequently silicified and at
times chloritized. These alterations contain disseminated sulphides which in
places contain lenses of semi-massive or banded mineralisation.


In the footwall of this mineralised zone, the felsic volcanic can be brecciated
and are frequently sericitised with cross-cutting quartz and pyritic veinlets.
The overlying hybrid tuffs do not exhibit ateration, and may have been deposited
following the alteration and mineralising event.


A feasibility study made on the El Paredon deposit prepared by the Instituto
Geologica y Minera de Espana ("IGME") (Diciembre 1981), entitled Estudio de
Viabilidad Tecnico-Economica del Yacimiento de Sulfuros "La Nava - El Paredon"
(Cordoba), 2 Tomos, Centro de Documentacion Report No. 10781, included an
estimation of a "mineable mineral resource" and preliminary mineral
beneficiation testwork. It concluded that the optimum design of the open-pit (to
a depth of 80m) with dimensions of 330m in length and 150m width would have
recoverable resources of 639,155 tonnes grading 1.08% Cu, 2.98% Pb, 6.53% Zn,
79.85g/t Ag, and 0.61g/t Au. Removal of waste would be required corresponding to
an ore/waste ratio of 1 tonne/4.33m3. Details of how the resource estimate was
calculated are not available.


This "mineable mineral resource" estimate was made in accordance with the
standards in effect at the time by IGME, a government agency, but a "mineable
mineral resource" estimate is not compliant with National Instrument 43-101 and
is reported here for reference purposes only, and should not be relied upon. 


An additional 17 core drill holes are reported to have been completed between
August 1982 and January 1983, however the results of this work are not
available. The resource estimate has not been updated since 1981. A NI 43-101
Technical Report is being prepared for the Company by Mr. Andrew Gourlay. P.
Geo. 


Additional drilling will be required to confirm the mineralization and grades
encountered in the historic exploration, and to test for extensions of the
mineralized zones. Results from the proposed drilling will be incorporated into
an updated and compliant resource estimate, when all the results have been
received and compiled.


A qualified person has not done sufficient work to classify the historical
"mineable mineral resource" as current mineral resources or mineral reserves.
The Company is not treating the historical "mineable mineral resource" as
current mineral resources or mineral reserves.


Previous exploration and technical studies were focused on the known deposits at
El Paredon with very limited regional exploration and there is the potential for
the resource to be substantially increased within the area covered by the
Permits. "Minera" will remain the operator of the property and will manage and
control exploration work in line with that recommended in the NI 43-101 report. 


The Company continues to hold a right of first refusal on the purchase from
S.W.J. of the Jan Kanty Coal Mine in Upper Silesia. (see the Company news
release of Sept. 06, 2011 for further details) negotiations are continuing with
a nearby nearly depleted coal mine with regards to accessing the Jan Kanty 510
seam from their existing 510 seam roadways. If successful this would reduce
capital costs, be more in accordance with the local communities concerns over
environmental issues and allow for more coal to be made available for extraction
from Jan Kanty.


A wholly owned subsidiary, Columbus Energy Poland Spz.o.o., has been
incorporated to apply for other projects of merit which have been identified in
Poland.


CEL currently has 65,206,291 shares issued and outstanding. The Company will be
seeking a financing concurrent with the issue.


The closing of the transaction detailed herein remains subject to the acceptance
of the TSX Venture Exchange.


Mr. Andrew Gourlay, P. Geo., is the Qualified Person who reviewed and approved
the scientific and technical information contained in this news release.


This news release includes certain "forward-looking statements". All statements
other than statements of historical fact included in this release, including,
without limitation, statements regarding potential mineralization, exploration
results and future plans and objectives of the Company are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from the
Company's expectations include market prices, exploitation and exploration
results, availability of capital and financing, general economic, market or
business conditions, uninsured risks, regulatory changes, defects in title,
availability of personnel, materials and equipment, timeliness of government
approvals, unanticipated environmental impacts on operations and other
exploration risks detailed herein and from time to time in the filings made by
the Company with securities regulators. The Company expressly disclaims any
intention or obligation to update or revise any forward-looking statements.