Contango ORE, Inc. Announces Trading

December 21, 2010 – HOUSTON, TEXAS – Contango ORE, Inc. (CORE) announced that its stock is now trading on the OTCBB under the symbol CTGO. CORE has been formed to explore for gold and rare earth elements in the State of Alaska.

One share of CORE has been distributed for each ten shares of stock of Contango Oil & Gas Company (Contango). No fractional shares were issued, but a cash payment will be made to shareholders of Contango with less than ten shares based upon the value established for CORE immediately before the distribution. The record date for shareholders for the distribution was October 15.

Contango obtained a valuation report from Avalon Development Corporation, a Fairbanks, Alaska-based mineral exploration consulting firm, of the value of the assets constituting the mineral properties owned or controlled by CORE. Based on that valuation report and the $3.5 million cash investment by Contango in CORE immediately before the distribution, Contango estimates the value of the assets contributed to CORE and distributed to Contango shareholders is $0.46 per share of Contango or $4.60 per share of CORE.

Kenneth R. Peak, CORE’s Chairman and Chief Executive Officer, said, “We are pleased to undertake this new venture and we welcome our fellow CORE shareholders. CORE has leased or filed mining claims on 759,800 acres in Alaska, with approximately 650,000 acres focused on gold and related mineral exploration and approximately 100,000 acres focused on rare earth element exploration. None of the exploration work done to date has identified quantifiable mineral resources. Further, eventual exploration success should not be assumed, given the highly speculative nature of gold and rare earth element exploration. While we have not finalized our 2011 exploration program, we anticipate a capital expenditure budget of $2.75 million for 2011, with approximately $2.25 million for gold and related mineral exploration and $.5 million for rare earth element exploration. Our budget for G&A expenses is less than $100,000 for the year.”

CORE is a Houston-based company that will engage in the exploration in Alaska for gold and associated minerals and rare earth elements. Additional information can be found on our web page at www.contangoore.com

This press release contains forward-looking statements regarding CORE that are intended to be covered by the safe harbor "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, based on CORE’s current expectations and includes statements regarding future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as "expects", “projects”, "anticipates", "plans", "estimates", "potential", "possible", "probable", or "intends", or stating that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved). Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the exploration and the mining industry (for example, operational risks in exploring for, developing mineral reserves; risks and uncertainties involving geology; the speculative nature of the mining industry; the uncertainty of estimates and projections relating to future production, costs and expenses; the volatility of natural resources prices, including prices of gold and rare earth elements; the existence and extent of commercially exploitable minerals in properties acquired by CORE; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the interpretation of exploration results and the estimation of mineral resources; the loss of key employees or consultants; health, safety and environmental risks and risks related to weather and other natural disasters); uncertainties as to the availability and cost of financing; inability to realize expected value from acquisitions; inability of our management team to execute its plans to meet its goals; and the possibility that government policies may change or governmental approvals may be delayed or withheld, including the inability to obtain any mining permits. Additional information on these and other factors which could affect CORE’s exploration program or financial results are included in CORE’s other reports on file with the Securities and Exchange Commission. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. CORE does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

For information, contact: Kenneth R. Peak Contango ORE, Inc. 3700 Buffalo Speedway, Suite 960 Houston, Texas 77098 (713) 960-1901 www.contangoore.com