Mr. Arden Morrow reports

ANNOUNCEMENT OF PRIVATE PLACEMENT FINANCING AND DEBT SETTLEMENT

Calico Resources Corp. has arranged a proposed private-placement financing. Calico proposes to raise private-placement funds of up to $2-million by the issuance of units at the price of 12 cents per unit, with each unit comprising one common share and one-half transferable share purchase warrant, with each full warrant entitling the holder to purchase a further share at the price of 15 cents up to one year from the date of the closing of the private placement.

The proceeds of the private placement will be used to continue the permitting process of Calico's high-grade underground gold deposit, the Grassy Mountain project, located in southeast Oregon. Shareholders are urged to review the technical report dated Nov. 29, 2012, which was filed on SEDAR on Dec. 4, 2012, under Calico's profile, and also to review the updated technical disclosure, which is contained in Calico's information circular dated Jan. 14, 2014, which was filed on SEDAR on Jan. 20, 2014. The proceeds of the private placement will also be used for general corporate purposes.

Also, Calico is pleased to announce the settlement of debt of up to $300,000 by the issuance of units having the same terms as the units in the general private placement. The debt settlement is subject to exchange approval. All securities to be issued under the private placement and debt settlement will be subject to a four-month hold period and the securities to be issued to U.S. residents, will also be subject to resale restrictions under U.S. securities laws.