Contango Ore, Inc. (CTGO) SEC Filing 10-K Annual report for the fiscal year ending Saturday, June 30, 2012

Exhibit 99.1

CORE Reports Second Quarter Results and Updates Operations

HOUSTON--(BUSINESS WIRE)--February 6, 2012--Contango ORE, Inc. (“CORE”) (OTCBB:CTGO.PK) reported a loss for the three months ended December 31, 2011 of $492,480 or $0.31 per basic and diluted share, compared to a loss of $296,237, or $0.19 per basic and diluted share, for the same period last year.

For the six months ended December 31, 2011, the Company reported a loss of approximately $2.1 million or $1.36 per basic and diluted share, compared to $1.2 million, or $0.74 per basic and diluted share, for the same period last year.

During the next four months, the Company plans to raise approximately $10.0 million to continue its exploration program in 2012, which runs from April – October. Possible sources of funding include equity offerings, borrowings from financial institutions and offering of debt securities. Equity offerings could cause substantial dilution of our common stock, while any incurred debt would increase our leverage and add to our need for cash to service such debt. Accordingly, there can be no assurances that capital will be available to us from any source or that, if available, it will be on terms acceptable to us.

For calendar year 2012, if we are able to obtain additional funding, our capital expenditure budget calls for us to invest approximately $6.75 million as follows:

Additionally, we have budgeted $500,000 to repay borrowings under the $1.0 million Revolving Line of Credit Promissory Note (the “CORE Note”) and anticipate $800,000 in capital raising fees and expenses.

If we are not successful in obtaining the entire $10.0 million, our capital exploration program for 2012 will be limited and we will need to reduce our planned drilling operations. Additionally, if we are not successful in obtaining any additional funding, we will not be able to conduct any exploration activities in 2012, nor will we be able to repay the CORE Note. As a result, we may be required to cease operations, dissolve and wind up the business of the Company.