Mr. Paul Parisotto reports

CALICO CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Calico Resources Corp. has closed the first tranche of its non-brokered private placement announced on Sept. 10, 2014. The company has issued 7,963,331 units at a price of 15 cents per unit for gross proceeds of $1,194,500.

Each unit consists of one common share and one-half of one share purchase warrant. Each whole warrant is exercisable to acquire an additional common share for a period of 12 months, at an exercise price of 18 cents per share for the initial six months and 21 cents for the final six months.

All securities issued by the company in connection with the private placement are subject to a statutory hold period which expires on Feb. 7, 2015.

The company paid a finders' fees in the amount of $10,250 to certain finders in accordance with TSX Venture Exchange policies.

The company anticipates closing a second tranche of the private placement in the amount of $613,500 shortly and will provide an update in due course.

The net proceeds of the private placement will be used to advance two of the company's major goals. First, in the near term, the company will be moving ahead with a preliminary economic assessment (PEA) for its Grassy Mountain project to quantify its economic potential. Secondly, the financing will enable the company's technical team to continue to advance the permitting process toward a completed Division 37 application acceptable to the State of Oregon. A portion of the proceeds will also be used for general working capital purposes.

President and chief executive officer Paul Parisotto stated, "We are very pleased to complete the first tranche of our private placement financing in a very difficult market environment, which I believe is a testament to the quality and economic potential of the company's Grassy Mountain project."

We seek Safe Harbor.