Mr. Paul Parisotto reports

CALICO ARRANGES $2,000,000 PRIVATE PLACEMENT FINANCING

Calico Resources Corp. has arranged a non-brokered private placement of 25 million common shares of the company at a price of eight cents per share for total gross proceeds of $2-million. No warrants, commissions or finders' fees will be issued or paid in connection with this financing.

Proceeds from the private placement will be used to continue the permitting process for Calico's 100-per-cent-owned Grassy Mountain gold project in Oregon and finance general working capital requirements. Paul Parisotto, president and chief executive officer of Calico, noted that permitting is proceeding on schedule and that the company expects to complete its Division 37 application to the state by early next year. "We are encouraged by the support we have been getting from local communities and the co-operation we have received from regulators," he said.

FCMI Parent Co., a company controlled by Albert D. Friedberg and members of his family, has agreed to subscribe for 14.9 million shares of the private placement, increasing its ownership in Calico to approximately 19.9 per cent. "We are gratified to have the support of several of our largest shareholders in this financing, particularly Mr. Friedberg, a large and successful investor in resource companies," stated Mr. Parisotto.

All securities issued pursuant to the private placement will be subject to a four-month-and-one-day hold period. The private placement is subject to receipt of applicable regulatory approvals, including the acceptance of the TSX Venture Exchange.

We seek Safe Harbor.