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Colombia Crest Gold Offers Up To 19.9 Percent Ownership To Iamgold


October 26, 2011

VANCOUVER, BC - Colombia Crest Gold Corp. (“Colombia Crest”; the “Company”) (TSX-V: CLB; Pink Sheets: ECRTF; Frankfurt: EAT) is pleased to announce that IAMGOLD Corporation ("IAMGOLD") has entered into a Letter Subscription Agreement with the Company pursuant to which IAMGOLD has agreed to purchase 12,000,000 units (each a “Unit”) at the price of Cdn$0.285 per Unit, for gross proceeds of $3,420,000.  Each Unit will be comprised of one common share and one-half of a share purchase warrant (each full warrant a “Warrant”), and each Warrant will entitle the holder to purchase one additional Share (a Warrant Share”) for Cdn$0.35 for two years after closing.  The Letter Subscription Agreement also provides for technical input from IAMGOLD on the Company’s upcoming exploration programs in Colombia, and grants to IAMGOLD certain anti-dilution rights in the event that the Company conducts further financings during the three years after closing, or in the event that outstanding options and warrants increase the Company’s outstanding share capital by 5% or more.  Completion of the Private Placement is subject to acceptance by applicable securities regulatory authorities including the TSX Venture Exchange.  No finder’s fee will be payable in connection with the financing.

“IAMGOLD's commitment to invest in Colombia Crest is a testament to the quality of our Colombian projects, the progress we have made in recent months, their confidence in our management and technical team, and the potential for a near-term exploration success once we drill the recently discovered Arabia porphyry target." commented Hans Rasmussen, President and CEO.  "IAMGOLD is an ideal partner. They are a well-established gold mining company that is aggressive, fast-acting and very keen on adding a Colombian project to their repertoire of mining ventures all over the world.  Their technical teams have visited the Fredonia and Venecia projects during the last two years and have observed our progress towards defining a porphyry gold-copper system. In addition to funding exploration, IAMGOLD will work with our management to provide technical input and assistance with the community and social responsibility programs, which further confirms their commitment to making the Fredonia and Venecia projects successful."

About Colombia Crest Gold Corp.

Colombia Crest Gold Corp. is focused on systematically exploring, developing and monetizing promising new gold projects in Colombia as well as realizing the potential of its 100 percent-owned San Simón project in Bolivia. The Company employs a team of seasoned geologists, each with 20+ years of experience exploring and discovering this type of porphyry deposit around the world, including Argentina, Mexico, Alaska, Indonesia, and Eastern Europe. 

Along with a strong working capital position, the Company will accelerate the exploration programs at the Fredonia and Venecia projects where it has optioned over 34,000 hectares located in the Cauca River Valley.  Situated approximately 40 km south of the city of Medellín, in Antioquia Province, the properties are positioned within the Middle Cauca Belt, which is the most prolific gold belt in Colombia with more than 500 years of gold mining history and several new gold discoveries. 

If you would prefer to receive news releases via email please contact Colombia Crest (info@ColombiaCrestGold.com) and specify “Colombia Crest news” in the subject line.

For more information, please contact:

Hans Rasmussen, President and CEO                                                    
Colombia Crest Gold Corp.                                                                         
Office: 604-684-7160                                                                                      
E-mail: hans@colombiacrestgold.com                                                

Benjamin Curry
Progressive Investor Relations
Direct: 604-689-2881
E-mail:  ben@progressive-ir.com

Please visit the Company’s website at www.ColombiaCrestGold.com.

Neither the TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.