Lago Dourado Provides Exploration Update On Its Juruena Project, Brazil

TORONTO, ONTARIO--(Marketwired - May 29, 2013) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") has received assay results for an additional three diamond drill holes at the Arrastro Hills porphyry target at its flagship 100%-owned Juruena Project located in Mato Grosso, Brazil. Holes JRND066 and JRND067, drilled in the central part of Arrastro Hills, and hole JRND068 (results have been received for the top 200m of this hole), the first hole drilled at the Arrastro Hills South East target, did not intercept any significant gold mineralization. Assay results for the remaining two holes drilled at Arrastro Hills South East (JRND069 and JRND070) are still pending. However, based on these initial drill results and the visual core inspection of these remaining holes, it would suggest that the alteration minerals and assemblages at Arrastro Hills and Arrastro Hills South East are a result of an intrusive heat source that is distal to or non-related to an underlying mineralized porphyry body.

The Arrastro Hills Complex was identified as a potential mineralized porphyry target based on the extensive clay-silica alteration, multi-element zonation, alteration signature, variable intrusive rock types and magnetic and radiometric characteristics. In total six reconnaissance-style diamond drill holes were completed within the Arrastro Hills complex (see Figure A). The first three holes (JRND065, JRND066 and JRND067) targeted soil values anomalous with elements associated with the possible epithermal leakage in the central part of the hills. The second three holes (JRND068, JRND069 and JRND070) were drilled in the southeastern part of the hills to test an Au-Cu soil anomaly, strongly brecciated and silicified volcanic rocks, interpreted magnetic heat source, and a strong high temperature muscovite alteration signature identified from SWIR analysis. The six drill holes intersected acid altered silicic volcanic rocks including multiple zones containing dykes and breccia intervals, finely disseminated sulfides and sulfide-filled fractures and vein. However, the lack of gold mineralization and associated porphyry-related elements in the assays received to date downgrade the probability of intersecting a mineralized porphyry at a shallow to intermediate depth at the Arrastro Hills Complex. Based on these results, the Company will shift its focus back to the multiple high-grade gold zones previously discovered in the central part of Juruena.

Future Plans

Drilling at the project has been halted and exploration work will now focus on advancing the known mineralized zones in the central part of Juruena in a cost effective manner. Previous drilling from the central area of the project has identified seven distinct mineralized zones with more than 20 intercepts with greater than 50 gram-metres gold (see Figure B). The two high priority zones the Company will initially focus on are the high-grade mineralized zones of Querosene and Donna Maria.

Querosene is a high-grade structure with more than 400 metres strike length that has returned intervals of 4m @ 32.5 g/t Au and 2m @ 47.1 g/t Au. Only eight shallow (less than 200m) diamond holes have been drilled at this zone. Donna Maria is a high-grade structure adjacent to the Crentes Zone. Historic drilling at Donna Maria returned 5.8m @ 52.4 g/t Au and 10.5m @ 14.6 g/t. The Company has drilled only one diamond drill hole at Donna Maria which returned two intervals of 1.0m @ 101.1 g/t Au and 16.0m @ 2.1g/t Au. Given the structural control of both these zones, ground magnetics will likely be a useful and cost-effective exploration tool to gain a clearer understanding of the underlying structures that host the gold mineralization.

The Company also plans to advance the Novo Astro target to a drill ready status. Novo Astro is host to an extensive set of active artisanal workings located approximately 25km east-south-east along trend from Juruena. Detailed geological mapping and extensive soil sampling of the area suggests that Novo Astro, whilst related to intrusive activity, exhibits more classical lode-style controls to mineralization. It is a gold-rich structurally-controlled system containing distinct high-grade gold zones that have good strike continuity. The main gold-in-soil anomaly is approximately 1 km wide and more than 2 km in strike length. Rock chip samples have returned very high gold numbers, including 92.9 g/t Au, 34.5 g/t Au and 18.2g/t Au. In-fill soil sampling has been completed over the higher priority areas identified during the recently completed geological mapping work (assay results are pending). Once all the assays have been received and have been integrated into the current dataset, any further follow up work will be determined before specific drill ready targets can be identified for future testing.

To view Figure A, click the following link: http://media3.marketwire.com/docs/LDM_FigA.pdf

To view Figure B, click the following link: http://media3.marketwire.com/docs/LDM_FigB.pdf

Qualified Person

Murray Paterson, P.Geo, Vice President Exploration and Development for Lago Dourado Minerals Ltd, is the Qualified Person, within the meaning of NI 43-101,who reviewed the technical data in this news release.

About the Company:

Lago Dourado Minerals Ltd. is a Canadian mineral exploration company focused on advancing its 100%-owned Juruena gold project in the state of Mato Grosso, Brazil. Extensive gold mineralization has been identified over 15 square kilometres of the property, and at least 450,000 oz of gold has been mined from surface workings. The Company has conducted systematic exploration programs over portions of the property and priority target areas will be drill tested with a Phase 2 drill campaign that is expected to be ongoing through 2013.

For further information about the company, please visit www.lagodourado.com or www.sedar.com.

Forward-Looking Statements

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. Although Lago Dourado believes that the expectations reflected in the forward looking statements contained in this press release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause Lago Dourado's actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and Lago Dourado does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.