Cosigo Resources Ltd. signs Letter of Intent with native communities in northwestern Brazil

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VANCOUVER, Dec. 19, 2011 /CNW/ - Cosigo Resources Ltd. (TSXV: CSG) today provided an update on the Company's activities in northwestern Brazil.

Highlights of the update include:

• Letter of Intent signed with communities and local authorities in native areas of northwestern Brazil to seek approvals for and to start a pilot project with the objective of developing mining opportunities
  
  
• Area covered by the Letter of Intent hosts multiple historic gold mining areas with Taraira Gold Belt geology similar to that of Cosigo's Machado project on the Colombian side of the border
  
  
• Upon receipt of Federal approvals for the pilot project, Cosigo will have the option to enter into a joint venture with up to a 75% interest on prospects identified by drilling in the area covered by the Letter of Intent

"We have completed the first steps toward a joint venture with the native peoples of this highly prospective region of Brazil. This pilot project stands to lead to successful mineral development, where native communities can take a leading role in their own economic future while maintaining environmental integrity," said Dennis W. Milburn, President and CEO of Cosigo. "Together with the communities we will now work to bring the project to fruition."

On December 2, 2011 the Company signed a Letter of Intent ("LOI") with the leaders of several native communities. Parties to the LOI include the Jose Mormes, Rio Tiquie and Baniwa nations, as well as representatives of the municipalities of Japura and Sao Gabriel de Cachoeira (collectively the "Communities"). The LOI was also signed by representatives of the Brazilian department of native affairs (FUNAI) and by the Federation of Indigenous Organizations of Rio Negro (FOIRN). The objective of the LOI is to initiate a pilot project to investigate mineral potential and develop mining opportunities in the Isana River, Pari Cachoeira, Tiquie River and Traira Serrania regions of the northwestern Amazon Province of Brazil. These regions close to the Colombian border are hosts to large areas of geology similar to that of Cosigo's Machado project in Colombia. According to the LOI, Cosigo has the option to enter into a mining venture where it has up to 75% interest on prospects identified by drilling. The Communities will retain a 25% interest in such prospects.

Prior to executing the LOI, Cosigo, the Communities and the Secretary of native affairs for the State of Amazonas had signed an initial Memorandum of Understanding expressing the desire of all parties to further the investigation of the mineral potential in the region. Currently, the Brazilian Federal Authorities do not authorize mining projects within native areas. Discussions are ongoing between native groups and Federal Authorities to establish, which areas could be developed once Federal authorization comes forth.

About Cosigo Resources:
Cosigo Resources Ltd. (TSX-V: CSG) is a Vancouver-based company exploring for gold deposits in Colombia and Brazil. Cosigo has assembled a strong team, well experienced in South America and in the exploration and mining-finance industries. The Company's flagship project is its 100% owned Machado Project in the Taraira Gold Belt of southeastern Colombia where geological mapping and geochemical sampling have identified potentially gold-bearing strata over a strike-length of more than 20 km. Cosigo's ongoing work on the 9,973 hectare Machado Project is the first modern exploration program in an area known to have hosted more than 100 historic gold mining operations.

Cautionary Notice: This release may contain forward-looking statements regarding the Company's business or financial condition, including the proposed completion of financings, use of proceeds and exploration programs.  Actual results could differ materially from those described in this news release as a result of factors, including, but not limited to the following: the timing and completion of financings, the actual use of proceeds, the timing, results and success of exploration and development programs, financial arrangements, the ability to obtain additional financing, developments in global resource markets, political developments, the timing of regulatory and environmental approvals and other factors.  The Company cautions that these and similar statements involve risk and uncertainties, which could cause actual results to differ materially from those in the forward looking statement.  Forward-looking statements are made in the context of information available as of the date stated.  The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.

On behalf of the Board of Directors
Cosigo Resources Ltd.
/s/"Dennis Milburn"
President & CEO

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