VCG.V · 2018-07-11 12:00:00

Callinex Commences Diamond Drilling at the Nash Creek Zinc Project in New

Exploration Programs

Brunswick, Canada

VANCOUVER, July 11, 2018 /CNW/ - Callinex Mines Inc. (the "Company" or "Callinex") (TSXV: CNX)

(OTCQX: CLLXF) is pleased to announce that it has commenced diamond drilling at the Company's

100% owned Nash Creek Zinc Project (the "Project") located in the Bathurst Mining District of New

Brunswick, Canada (See Figures 1 and 2). The drilling campaign will consist of approximately 20 to 40

drill holes totaling 3,500 to 7,000m to test potential for satellite zinc-lead-silver deposits periphery to the

Nash Creek Deposit.

The company recently completed a Preliminary Economic Assessment ("PEA") which outlined a high-

margin, open-pit mine plan that generates a pre-tax internal rate of return of 34.1% and Net Present

Value at an 8% discount rate of $230 million (See News Release dated May 14, 2018). The current drill

program is a clear opportunity to significantly enhance the project's economics with additional exploration

that extends the mine life and/or allows for higher grade material to be scheduled earlier in the mine plan.

There are six main target areas that surround the Nash Creek Deposit and include: Hayes South, Hayes

North, Hickey East, NW Soil Anomaly, Hickey North and the Central Zone (See Figure 3). Drilling has

commenced in the NW Soil Anomaly area and will generally proceed in a southern direction.

A 60 line km ground induced polarization ("IP") survey will be completed at the Central Zone shortly to

further delineate zinc-lead-silver mineralization and potential to discover new deposits. The IP program

may be expanded up to 160 line km to cover high-priority target areas along a 20 km trend of mineral

occurrences grading up to 19% Pb+Zn (See News Release dated August 21, 2017).

A two-minute overview video for the Nash Creek Project can be viewed by clicking here.

Cautionary Note on PEA. The PEA is preliminary in nature and it includes Inferred Mineral Resources

that are considered too speculative geologically to have the economic considerations applied to them that

would enable them to be categorized as Mineral Reserves. There is no certainty that the PEA will be

realized.

J.J. O'Donnell, P.Geo, a qualified person under National Instrument 43-101 and a Consulting Geologist

for Callinex, has reviewed and approved the technical information in this news release.

Figure 1: Map of the Bathurst Mining District of New Brunswick

Figure 2: Nash Creek Land Package

Figure 3: Plan Map of the Nash Creek Deposit

Table 1: Mineral Resource Estimates for the Nash Creek and Superjack Projects

Indicated Mineral Resources

Project Tonnes Zn Eq.

(%)

(g/t)

(%)

Contained Zn Eq.

(M lbs)

Nash Creek 13,592,000 3.21 2.68 0.58 17.8 n/a 963.4

Total 13,592,000 3.21 2.68 0.58 17.8 n/a 963.4

Inferred Mineral Resources

Project Tonnes Zn Eq.

(%)

(g/t)

(%)

Contained Zn Eq.

(M lbs)

Superjack 3,211,000 4.63 3.01 0.78 29.5 0.27 327.6

Nash Creek 5,929,000 3.11 2.68 0.47 13.9 n/a 407.1

Total 9,140,000 3.64 2.80 0.58 19.4 0.09 734.7

Notes:

1. Mineral Resources are categorized accord ing to CIM Definition Standards; it cannot be

assumed that all or any part of Inferred Mineral Resources will be upgraded to Indicated or

Measured as a result of continued exploration.

2. The Nash Creek Mineral Resource Estimate includes the Hickey Zone and Hayes Zone.

3. The Superjack Mineral Resource Estimates includes the Nepisiguit A (the "A Zone") and

Nepisiguit C Zones (the "C Zone").

4. Zinc equivalent Mineral Resources for the Nash Creek Project based on trailing 3-year

metal prices and metallurgical recovery assumptions based on limited testwork. Zinc

equivalency is calculated as Zn%+ 0.747*Pb% + 0.006*Ag_ppm.

5. A cut-off grade of 1.5% Zn Eq. wa s utilized in the resource estimate.

6. Zinc equivalent Mineral Resources for the Superjack Project were calculated using metal

prices of $1.12/lb for zinc, $1.06/lb for lead, $2.97/lb for copper and $20.38/oz for silver.

Metal recoveries have been assumed to be 100% for zinc, 72% for lead, 86% for copper

and 70% for silver. A cut-off grade of 1.5% Zn Eq. was utilized in the Mineral Resource

Estimate.

About Callinex Mines Inc.

Callinex Mines Inc. (TSX-V: CNX ; OTCQX: CLLXF) is advancing its portfolio of zinc rich deposits located

in established Canadian mining jurisdictions. The portfolio is highlighted by its Nash Creek and Superjack

deposits in the Bathurst Mining District of New Brunswick. A 2018 PEA outlined a mine plan that

generates a strong economic return with a pre-tax IRR of a 34.1% (25.2% post-tax) and a pre-tax NPV8%

of C$230 million (C$128 million post-tax). The projects have significant exploration upside over a district-

scale land package that encompasses several high-grade mineral occurrences along a 20 km trend. Click

here to view a video overview of the Nash Creek Project.

Callinex has a project portfolio that also includes projects within the Flin Flon Mining District of Manitoba

that are located 25 km to an operating processing facility that requires additional ore. The Company's

projects host Indicated resources of 13.6 Mt averaging 3.2% Zn Eq. totaling 963 million pounds and

Inferred resources of 23.2 Mt averaging 5.2% Zn Eq. totaling 2.7 billion pounds (See News Release dated

April 16, 2018).

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 or accuracy of this

release.

Some statements in this news release contain forward-looking information. These statements include, but

are not limited to, statements with respect to future expenditures. These statements address future

events and conditions and, as such, involve known and unknown risks, uncertainties and other factors

which may cause the actual results, performance or achievements to be materially different from any

future results, performance or achievements expressed or implied by the statements. Such factors

include, among others, the ability to complete the proposed drill program and the timing and amount of

expenditures. Except as required under applicable securities laws, Callinex does not assume the

obligation to update any forward-looking statement.

View original content:http://www.prnewswire.com/news-releases/callinex-commences-diamond-drilling-

at-the-nash-creek-zinc-project-in-new-brunswick-canada-300679093.html

SOURCE Callinex Mines Inc.

View original content: http://www.newswire.ca/en/releases/archive/July2018/11/c2036.html

%SEDAR: 00031889E

For further information: Callinex Mines Inc.: Max Porterfield, President and Chief Executive Officer,

Phone: (604) 605-0885, E-mail: [email protected]

CO: Callinex Mines Inc.

CNW 08:30e 11-JUL-18

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