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TORONTO, ONTARIO--(Marketwire - Oct. 1, 2009) - Colossus Minerals Inc. (TSX:CSI) (the "Company") today reports that the Board of Directors has adopted a shareholder rights plan ("Rights Plan") effective October 1, 2009. The Rights Plan is designed to provide adequate time for shareholders of the Company and the Board of Directors to consider and evaluate any unsolicited take-over bid for the Company; to provide the Board adequate time to identify, develop and negotiate alternatives for maximizing shareholder value; to provide shareholders with an equal opportunity to participate in any take-over bid; to encourage the fair treatment of shareholders in the event of any bids for the Company; and, to ensure that any proposed transaction is in the best interest of the Company's shareholders. The Company is not aware of any pending or threatened take-over bid for the Company.

The Rights Plan is effective immediately subject to ratification by the Company's shareholders, which will be sought at the Annual and Special Meeting of Shareholders (the "Meeting") to be held in January 2010.

Under the terms of the Rights Plan, one right (a "Right") will be issued by the Company in respect of each outstanding common share of the Company at the close of business today and in respect of each common share of the Company issued hereafter (subject to the terms of the Rights Plan). The Rights issued under the Rights Plan become exercisable only if a person acquires or announces its intention to acquire 20% or more of the common shares of the Company without complying with the "permitted bid" provisions of the Rights Plan or without the approval of the Board of Directors of the Company.

Should such an acquisition occur, Rights holders (other than the acquiring person or related persons) can purchase common shares of the Company at a substantial discount to the prevailing market price (as defined in the Rights Plan) at the time the Rights become exercisable.

"Permitted bids" under the Rights Plan must be made by take-over bid circular to all holders of common shares of the Company and no common shares shall be taken up or paid for for a minimum of 60 days following the date of the bid. If, at the end of 60 days, at least 50% of the outstanding common shares, other than those owned by the offeror and certain related parties, have been tendered and not withdrawn, the bidder may take-up and pay for the shares but must extend the bid for a further 10 days to allow other shareholders to tender to the bid.

Although effective as of today, the Rights Plan is subject to ratification by the Company's shareholders at the Meeting and, if ratified, the Rights Plan must be confirmed at every third annual meeting thereafter. If not ratified at the Meeting, the Rights Plan and all of the Rights outstanding at that time will terminate.

About Colossus:

Colossus is minerals development Company focused on gold and platinum group metals properties 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: [ www.sixtyminutes.ninemsn.com.au/article.aspx?id=299887 ].