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Summer Drilling Campaign Commences at Callinex’s Pine Bay Project in British Columbia

Callinex Mines Inc. (the "Company" or "Callinex") is pleased to announce that it has commenced the previously announced summer drilling campaign (the "Campaign") at its 100% owned Pine Bay Project located near HudBay's 777 mine and processing facilities in Flin Flon, Manitoba. The Campaign is anticipated to include at least three drill holes totaling up to 3,000m (See Figure 1). The first hole of the Campaign is planned to test a highly conductive target near the Sourdough Zn-Cu Deposit as outlined in the Company's June 15, 2016 news release.

Additionally, the Company plans to deepen two historic drill holes completed by Inmet (1995) and Placer Dome (1993) to test the newly interpreted Lower Volcanogenic Massive Sulphide ("VMS") Horizon at depth. These two deep drill holes are essentially parallel and spaced approximately 360m apart. When deepened, the two drill holes should provide excellent geophysical and geological coverage to properly test the down-plunge and lateral extension of the Pine Bay East Zone, a new discovery from the 2015 winter drilling campaign, plus the copper zone contained within the thick massive sulphide zone encountered at the start of hole PBM-009 (refer to news release dated April 25, 2016). This approach is expected to be a cost-effective method to evaluate the depth potential of the prospective Lower VMS horizon over a significant strike length using modern borehole geophysical technology.

Drilling completed earlier this year at the Pine Bay East Zone consisted of four drill holes that outlined mineralization over an approximate 175m strike length. In particular, drill hole PBM-008 intersected 3.3m of 3.2% Cu and 5.9m of 2.2% Zn and hole PBM-014 intersected 2.3m of 9.3% Zn Eq. (Refer to news releases dated March 7, 2016 and May 31, 2016). Interestingly, in 1995 Inmet planned to test this area at depth, prior to Callinex's recent discovery, but the drill hole appears to have been prematurely stopped before reaching the projected Lower VMS horizon. It is anticipated that the bottom of this existing Inmet drill hole will be reamed to a larger core diameter (from a BQ to NQ core size) for 231m then extended for approximately 450m as part of the current Campaign to comprehensively test the Lower VMS horizon and the favourable stratigraphy that immediately overlies it.

The Company has applied to receive up to $200,000 in funding from the Government of Manitoba through their 2016 Mineral Economic Assistance Program ("MEAP") and recently received payment for $159,529 as part of the 2015 MEAP.

The technical content of this news release has been reviewed and approved by James Pickell, P.Geo, a Consultant to the Callinex, and a Qualified Person as defined by National Instrument 43-101.

Click here to view Figure 1: Map of Proposed Drill Holes: http://media3.marketwire.com/docs/Callinex-figure1.pdf

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