VCG.V · 2017-01-19 12:00:00

Callinex Reports Initial Drill Results at Pine Bay

Drill Results

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Vancouver, British Columbia – January 19, 2017 – Callinex Mines Inc. (the “Company” or

“Callinex”) (TSX-V: CNX; OTCQX: C LLXF) is pleased to pro vide additional drill results from its

ongoing drilling campaign at the Pine Bay Project located near Flin Flon, Manitoba. The Company

has received assay results from drill hole 284-3-93W02 and 95-02-DPN. Hole 284-3-93W02 was

drilled to test a Borehole Pulse ElectroMagnetic (‘BPEM’) anomaly believed to be associated with

the Pine Bay VMS Horizon and provide an approximate 60m step-out intersection above the

recent discovery in hole 284-3-93-DPN (See news release dated November 1, 2016).

Drill hole 284-3-93W02 successfully intersected the Pine Bay Horizon between 1264.2m-1272.4m

and cut three copper-rich, chalcopyrite stringer -bearing intervals within a strongly altered felsic

volcanic package, including one interval with 0.2m of 3.42% Cu. A partial BPEM survey that was

completed to a down- hole depth of 1,112m identified a sizeable untested off -hole geophysical

target along strike to the southwest (See Figures 1 and 2). Since the closest drill hole to intersect

the horizon is well over 500m away , this leave s a large new prospective area open for further

exploration (see Figure 2 ). The Company plans to extend drill hole 95 -02-DPN, located

approximately 400m along strike to the southwest from the 284 -3-93W02 hole to test this area

and the interpreted new BPEM anomaly associated with the Pine Bay Horizon.

The 284- 3-93W02 wedged drill hole also tested an area approximately 60m above the 10.3m

intersection grading 13.1% Zn Eq. cut by 284- 3-93-DPN (see news release dated October 18,

2016) (See Figure 3) . It appears that a post-ore mafic dyke replaced the massive sulphide zone

in this immediate area of the Cabin VMS Horizon. The hole did intersect footwall mineralization

immediately preceding the mafic dyke over a 5. 7m interval grading 1.0 4% Zn, which is

comparable to the weak footwall mineralization intersected prior to the 10.3m massive sulphide

intersection in hole 284-3-93-DPN.

The Company has also recently completed drill hole PBM-017 and anticipates shutting down the

rig drilling PBM-019 later today. Both holes were drilled to test the down plunge extent of the 284-

3-93-DPN zone approximately 300m beneath the intersection. These holes did not intersect

significant massive sulphide mineralization but did intersect very strong alteration with in a

favorable rock package. A BPEM survey completed on PBM- 017 did not appear to identify any

nearby conductors and a survey will be completed PBM-019 imminently. Results from the BPEM

survey on PBM-019 and 95-02-DPN will guide the Company in determining additional drill targets

in the direct vicinity of 284 -3-93-DPN. It is anticipated that exploration will increasingly focus on

prospective areas along strike of this new zone where no previous drilling has occurred in either

direction beneath a depth of 200m (See Figure 3).

Drill hole 95 -02-DPN intersected a 1.7m wide stringer zone grading 1.99% Cu that included a

0.6m interval grading 4.72% Cu. Lithogeochemical data has indicated that this drill hole

intersected approximately 540m of highly altered felsic rocks in the immediat e footwall of the

Cabin Horizon and its underlying Baker Patton VMS Horizon that the 1.7m thick copper zone

occurs within. A borehole survey of 95- 02-DPN was attempted but was unable to be completed

due to a blockage at 527m down- hole. A drill rig will be moved back to the drill collar location in

order to clean out the hole and complete a new BPEM survey.

Callinex will continue to conduct aggressive exploration with two drill rigs . One rig is currently

drilling hole SDB -006 to test the large BPEM geophysical target associated with 24.9m of

sulphide mineralization discovered to the north of the known Sourdough Bay Deposit (See news

release dated October 11, 2016). This hole is targeting an area approximately 300m along strike

from hole SDB-005. A second drill rig will be moved from PBM- 017 to resurvey drill hole 95-02-

DPN and then extend the hole to test the BPEM target on the Pine Bay Horizon (See Figure 2

and 3). Afterwards, it is anticipated that PBM-10, a previously drilled hole that was stopped short

of the Cabin Horizon along strike to the northwest of 284- 3-93-DPN, will be d eepened to test the

horizon.

Table 1: 95-02-DPN and 284-3-93W02 Assay Results

Hole (1)-(4) From

(m)

Interval

(m)

(%)

(g/t)

(%)

95-02-DPN

Baker Patton

VMS Horizon

783.42 785.16 1.74 1.99 0.01 0.07 4.55 0.00

including 784.55 785.16 0.61 4.72 0.01 0.14 10.20 0.00

284-3-93-W02

Cabin VMS

Horizon

936.30 942.00 5.70 0.03 1.04 0.07 1.46 0.01

284-3-93W02

Pine Bay VMS

Horizon

1272.15 1272.35 0.20 3.42 0.02 0.17 17.90 0.00

Notes(1)(2)(3(4):

1. Dip and azimuth for hole 95-02-DPN is -78⁰ and 314⁰ Az. The 1,219m deep diamond drill

hole is located at the following Universal Transverse Mercator (UTM) coordinates using

the North American Datum of 1983 (NAD83) within UTM Zone 14N: 332626m East

and 6071300m North. The collar of the hole is 318m above sea level.

2. Dip and azimuth for hole 284-3-93W02 is -85⁰ and 317⁰ Az. The 1,364m deep diamond

drill hole is located at the following Universal Transverse Mercator (UTM) coordinates

using the North American Datum of 1983 (NAD83) within UTM Zone 14N: 332882m East

and 6071554m North. The collar of the hole is 321m above sea level.

3. The numbers may not add due to rounding.

4. True widths are not currently known.

Figures

Figure 1: Plan Map of the Northern Pine Bay Area

Figure 2: Longitudinal Section of the Pine Bay VMS Horizon

Figure 3: Longitudinal Section of the Cabin VMS Horizon

QA/QC

Individual samples were labeled, placed in plastic sample bags, and sealed. Groups of samples

were then placed in security sealed bags and shipped directly to SGS Canada Inc in Vancouver,

B.C. for analysis. Samples were crushed to 75% passing 2mm and pulverized to 85% passing 75

microns in order produce a 250g split. All copper, zinc and silver assays were determined by

Aqua Regia digestion with a combination of ICP-MS and ICP-AES finish, with overlimits (>100

ppm Ag, >10,000 ppm Zn, and >10,000 ppm Cu) completed by fire assay with gravimetric finish

(Ag) or Aqua Regia digestion with ICP-AES finish (copper and zinc). All samples were analyzed

for gold by Fire Assay of a 30 gram charge by AAS, or if over 10.0 g/t were re-assayed and

completed with a gravimetric finish. QA/QC included the insertion and continual monitoring of

numerous standards and blanks into the sample stream at a frequency of 1 per 10 samples, and

the collection of duplicate samples at random intervals within each batch at a frequency of 1 per

10 samples.

SGS Canada Inc carried out some or all of following methods to obtain the assay results for

Callinex: G_LOG02 Pre-preparation processing, G_WGH79 Weighing and reporting, G_PRP89

Weigh, dry, crush, split, pulverize, G_SCRQC QC for crush and pulverize stages, G_CRU22

Crush >3kg, G_DRY11 Dry samples, GE_FAA313 @Au, FAS, AAS, 30g-5ml (Final mode), GE-

IC14A Aqua Regia digestion/ICP-AES finish, GE_IMS14B Aqua Regia digestion/ICP-MS

package, GE_IMS14 Aqua Regia digestion, GO_FAG303 30g, Fire assay, gravimetric finish

(Au)(Final Mode), GO_FAG313 30g, Fire assay, gravimetric finish (Ag)(Final Mode), G0_ICP13B

Ore Grade, Aqua Regia digest/ICP-AES. Ag >10ppm was analyzed by ICP and GO_XRF77B-

pyrosulfate fusion.

James Pickell, P.Geo, a Qualified Person under National Instrument 43- 101 and a consultant to

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

About Callinex Mines Inc.

Callinex Mines Inc. is focused on discovering and developing zinc and copper rich mines within

prolific Canadian VMS mining jurisdictions. The Company is actively exploring its Pine Bay

Project, located in the Flin Flon mining district of Manitoba, which hosts significant historic VMS

deposits that are within close proximity to a processing facility. The larger project portfolio hosts

three significant zinc rich mineral resources including the Point Leamington, Nash Creek and

Superjack Projects located in Eastern Canada.

For additional information, please contact:

Callinex Mines Inc.

Max Porterfield, President and Chief Executive Officer

Phone: (604) 605-0885

E-mail: [email protected]

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.

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