Lago Dourado Minerals Ltd. has completed the first diamond drill hole at the Arrastro Hills South East porphyry target at its 100%-owned Juruena Project located in Mato Grosso, Brazil. Hole JRND068 was drilled vertically to a depth of 480m to test a strong muscovite alteration signature that corresponded with a major crosscutting fault structure and a deep seated IP anomaly. Drill core for the hole is being split and logged on site and will be shipped for fire assaying later this week. Drilling productivity has significantly improved compared to the start of the year due to the easing of the wet season and Arrastro Hills South East being much more accessible than the central part of Arrastro Hills. The next hole planned at Arrastro Hills South East (JRND069) is approximately 500m east of JRND068 and will target a phengite-rich zone that corresponds with an IP anomaly and broad Au-Cu soil anomaly. The presence of phengite is indicative of a higher temperature part of the system that may represent an exposed part of a porphyry system. A study conducted by the MDRU found a strong association between phengite and gold mineralization at known mineralized zones elsewhere at Juruena, including the Crentes, Tomate and Uiliam zones, which are located proximal to Arrastro Hills South East.

Lago Dourado Minerals Ltd. provided an exploration update on its 100%-owned Juruena Project located in Mato Grosso, Brazil. Three drill holes have now been completed at the previously untested Arrastro Hills porphyry-epithermal target. Assay results have been received for the first drill hole while alteration analyses (SWIR spectral analysis was conducted by the MDRU) from the first two drill holes and also grab samples across the Arrastro Hills target area have also been received and integrated with the soil sample data. Geological logging, SWIR alteration analysis and assay results (where received) have confirmed that the Arrastro Hills alteration system represents a large porphyry intrusive complex as evidenced by the multiple intrusive types and zones of brecciation, the diversity and type of alteration minerals and the presence of disseminated sulfides. An extensive alteration mineral study consisting of more than 230 samples was recently completed by the MDRU. The study suggested that the Arrastro Hills South East porphyry target area is the most prospective target based on the presence of phengite, which is characteristic of a higher temperature part of the system that may represent an exposed part of a porphyry system. The initial three diamond drill holes from the central part of Arrastro Hills all intercepted a thick homogeneous pile of volcanic units (minimum thickness of at least 250 metres). Three drill holes (JRND065, JRND066 & JRND067) from the central part of Arrastro Hills have now been completed with assay results still pending for two of the holes. Drill hole JRND068, the first diamond drill hole to test the new Arrastro Hills South East target, commenced last week. Drilling year to date has been slower than expected due to access difficulties associated with rain related damage to the main access road to the central part of Arrastro Hills.

Lago Dourado Minerals Ltd. released a geological report on its 100% owned Juruena Project located in Mato Grosso, Brazil. The report confirms the porphyry-epithermal potential at Juruena and identifies the Arrastro Hills area as the most promising porphyry target on the property. The presence of a lithocap which, in most instances, is considered to develop over mineralized porphyry intrusions. The evidence for a lithocap is supported by widespread and intense acid alteration that is coincident with a potassium radiometric anomaly and elevated barium and arsenic soil values. The porphyry stocks that generate such lithocaps are typically high-level (within 200m to 800m from surface). Multi-element zonation from geochemical soil sampling is consistent with a well-developed epithermal-porphyry system. Elevated background Ba and Pb soil values define the limits of the lithocap, while elements associated with possible epithermal leakage (As-Ag-Bi-Hg-Mo-Pb-Sb) from the underlying porphyry are anomalous in the centre of the system. Drilling for 2013 is underway with one drill rig turning on the first hole at the Arrastro Hills target. Drilling to date on this first hole has been slower than expected. This has been a function of fractured ground encountered at the top of the hole as well as trying to ramp up drilling in a new target area in the wet season. Drilling productivity is expected to improve as the wet season subsides (March onwards). Approximately 5,000 metres is still to be drilled as part of the company's Phase 2 drill program.