Mr. Roland Butler reports

CALLINAN RECEIVES BALANCE OF 2013 NET PROFITS INTEREST ROYALTY PAYMENTS

Callinan Royalties Corp. has received a payment of $2,924,004.85 from HudBay Minerals Inc. This payment includes interest and represents the remaining balance of payments for 2013 to Callinan and brings total royalty payments for the 2013 calendar year to $11,488,032 including interest.

Interim quarterly payments were made throughout calendar year 2013, estimated by HudBay Minerals to represent 75 per cent of 6-2/3 per cent of the net profits from the 777 mine and 777 North mine in Flin Flon, Man., plus 25 cents per ton of ore milled. The remaining 25 per cent is paid with interest annually in July, 130 business days after the financial year-end of HudBay Minerals as per the agreement. The above payment represents the balance of the 25 per cent withheld over the four financial quarters ended Dec. 31, 2013, adjusted to reflect final calculation by HudBay Minerals of the net profits interest.

The payments are derived from Callinan's royalty interests on lands that include the 777 mine and 777 North mine at Flin Flon, Man., which are the principal mining operations of HudBay Minerals.

We seek Safe Harbor.