Lago Dourado Intercepts 216 Metres of 0.55 g/t Gold Including 12.75 Metres of 2.58 g/t Gold at New Uiliam Target at Juruena Project, Brazil

TORONTO, ONTARIO--(Marketwire - Jan. 12, 2012) - Lago Dourado Minerals Ltd. (TSX VENTURE:LDM), (the "Company") announced that it has intercepted its broadest mineralized zone to date at its Juruena Project in Mato Grosso, Brazil. Hole JRND046 intercepted 216 metres of 0.55g/t gold, including 12.75 metres of 2.58g/t gold, at the new Uiliam target (see Table 1 below for further detail). Uiliam is situated approximately 750m south of the mineralized Crentes Zone, 500m north of the mineralized Jacare's Field Zone and 1,500m south-east of the newly-defined major (3km x 2km) Arrastro Hills potassium and zoned multi-element geochemical anomaly. The Uiliam area has not previously been drill tested by the Company (see Figure A for plan map: http://media3.marketwire.com/docs/FigureA_JuruenaProperty.jpg).

Hole JRND046, drilled underneath the southern end of the Uiliam Pit at a dip of -50 degrees to test sulfide rich veins exposed in outcrop, encountered a mineralized mafic dyke swarm from 272m to 468m. The mineralized zone has an estimated true width of 165m and was intercepted at a vertical depth of approximately 200m. It is interpreted to be continuous to surface due to the extensive surface bedrock workings that continue along the Gleba Fault Zone to Chico/Arrastro Hills, a distance of 2 kilometres (see Figure B for an interpreted cross-section: http://media3.marketwire.com/docs/FigureB_CrossSection.jpg). Three narrow zones were also intersected higher in the hole and are interpreted to represent the down dip continuation of mineralization being mined from the Uiliam open pit (see table below).

Mineralization is predominantly related to the mafic dykes that brecciated, fractured and intensely altered the magnetite-rich porphyritic granite host-rock. The hole is also geologically significant due to the presence of ocelli or globules (pyrite, white feldspar and calcite) associated within the mafic dykes. This texture is commonly formed during extreme and rapid depressurization which, when associated with a mineralized system (as indicated by Juruena's massive gold-in-soil anomaly), provides the perfect environment to precipitate gold on a massive scale.

The Uiliam Pit is situated at the southern limits of a prominent structural jog (as shown by the aeromagnetic survey) that is approximately 1km long and trends north-east and connects to the Crentes Zone. Three historic holes were drilled just to the north of hole JRND046 at the Uiliam Pit by a previous operator. The three holes appeared to have intercepted the down dip continuation of mineralization being mined from the Uiliam Pit however none of the holes intersected the mafic dyke swarm and the holes ended before intersecting the main mineralized structure discovered in hole JRND046. Follow up drilling in 2012 will focus along this structural corridor, in particular the inflection point of the structural jog close to the Crentes Zone. The Company is expected to complete its Phase I drill program by the end of the month. The Phase 2 drill campaign will likely consist of a 12,000 to 15,000 metre program and is due to begin by the end of the first quarter.

"The presence of such a broad and persistently mineralized zone provides further confirmation that the massive gold-in-soil anomaly at Juruena has resulted from a major mineralizing event. We look forward to testing the continuity of this mineralized zone along the structural corridor in 2012 as well as targeting additional porphyry-type targets, also associated with more mafic intrusions, identified by a recent multielement geochemical survey," commented Forbes Gemmell, CEO.

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. Samples were fire assayed by Acme Analytical Laboratories S.A. in Santiago, Chile.

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 10 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 are now being drill tested with a Phase 1 drill campaign expected to continue through the first quarter of 2011. Large portions of the 70 sq. km property remain largely untested. The Company currently has 71.3 million shares outstanding.

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.