Mr. Paul Parisotto reports

CALICO ANNOUNCES COMMENCEMENT OF PRELIMINARY ECONOMIC ASSESSMENT AND METALLURGICAL TEST WORK

Calico Resources Corp. has authorized three new studies to enhance the value of its 100-per-cent-owned Grassy Mountain gold project in eastern Oregon.

Calico has commissioned Metal Mining Consultants Inc. of Highlands Ranch, Colo., under the direction of Scott E. Wilson, to complete a preliminary economic assessment focusing on the high-grade underground portion of the Grassy Mountain deposit. MMC has a strong record of successful project engineering for small and mid-sized gold projects. Completion of the PEA is expected in January, 2015.

As part of the PEA, Calico has commissioned Hard Rock Consulting, LLC of Littleton, Colo., to update the December, 2012, National Instrument 43-101 resource estimate. The updated resource estimate will incorporate a smaller block size which is more suitable for the underground mining scenario proposed for the PEA as well as recent drill results that were not included in the last estimate.

Additionally, Calico has contracted Resource Development Inc., of Wheatridge, Colo., to undertake detailed metallurgical testwork and process design in order to maximize the recoveries for the Grassy Mountain deposit. This work will be directed by Dr. Deepak Malhotra, PhD, president of Resource Development. Results of the metallurgical tests will be utilized in the PEA.

Paul Parisotto, president and chief executive officer, stated: "The PEA is a very important next step to continue to create value for the Calico shareholders. I am confident that by focusing on developing the high-grade portion of the Grassy Mountain deposit, the PEA will demonstrate that the project is economically viable at the current gold price."

Financing for these initiatives was obtained in the private placements completed earlier this month.

The Grassy Mountain gold project hosts a high-grade National Instrument 43-101-compliant resource consisting of an estimated 2,341,000 tonnes of measured grading 9.48 grams per tonne (713,400 ounces), 95,000 tonnes of indicated grading 8.75 grams per tonne (26,700 ounces) and 14,700 tonnes of inferred grading 8.75 grams per tonne (4,100 ounces), calculated using a 2.7-gram-per-tonne cut-off grade.

Michael F. McGinnis, CPG 10914, Calico's project manager/exploration, is the company's qualified person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects. He has reviewed and approved the technical information disclosed in this news release.

We seek Safe Harbor.