Mr. Max Porterfield reports

CALLINEX ANNOUNCES HIGH-GRADE COPPER MAIDEN MINERAL RESOURCE ESTIMATE AT ITS PINE BAY PROJECT IN MANITOBA

Callinex Mines Inc. has released a high-grade copper maiden mineral resource estimate for its 100-per-cent-owned Pine Bay project in Manitoba. The project hosts the high-grade copper, zinc, gold and silver Rainbow deposit, which is open for expansion in addition to the Pine Bay deposit, which sits in close proximity. The deposits at the Pine Bay project are volcanogenic massive sulphide (VMS) deposits, which contain significant copper, zinc, gold and silver that the Flin Flon mining district is known for. The resource estimate was prepared by Kirkham Geosystems Ltd. for the company.

Highlights:

• Rainbow deposit indicated mineral resource of 3.44 million tonnes at 3.59 per cent copper equivalent and inferred mineral resource of 1.28 million tonnes at 2.95 per cent copper equivalent;
• Pine Bay deposit inferred mineral resource of 1.0 million tonnes at 2.62 per cent copper equivalent;
• Fully financed 20,000-metre drilling is continuing to explore in depth and to further define parallel deposit targets at the project;
• The attached tables provide further information of the mineral resources estimate, together with sensitivity to cut-off grades and determination of copper equivalent.

The mineral resource estimate, contained within the mineral lease, consists of the Rainbow deposit with an indicated mineral resource of 3.44 million tonnes at 3.59 per cent copper equivalent, containing 272.4 million pounds copper equivalent (comprising 238.3 million pounds copper, 56.9 million pounds zinc, 37,600 ounces gold, 692,800 ounces silver and 2.3 million pounds lead) and an inferred mineral resource of 1.28 million tonnes at 2.95 per cent copper equivalent containing 83.4 million pounds copper equivalent (comprising 72.1 million pounds copper, 19.5 million pounds zinc, 11,100 ounces gold, 222,200 ounces silver and 800,000 pounds lead); and the Pine Bay deposit with an inferred mineral resource of 1.0 million tonnes at 2.62 per cent copper containing 58.1 million pounds copper.

Max Porterfield, president and chief executive officer, stated, "We are thrilled to be announcing a high-grade copper maiden mineral resource estimate at the Pine Bay project; after discovering the Rainbow deposit in late 2020, the project has grown to become one of the largest initial published resources to date in the Flin Flon district's robust history." Mr. Porterfield continued: "With this maiden mineral resource estimate complete, we will now focus on continuing our aggressive drilling program at depth and along the trend that hosts the deposits at Pine Bay. Completion of the maiden resource is also a key milestone and critical step in our goal to develop the project for the benefit of all stakeholders and the surrounding communities."

Peter R. Jones, a member of Callinex's technical team, said: "The Pine Bay project maiden resource has extraordinary copper grades and excellent tonnage in two deposits about 900 metres apart. The opportunity to further increase resource tonnage both in depth and from parallel structures is considerable. I look forward to the ongoing results from the well-funded exploration program."

The company will file a National Instrument 43-101 technical report that supports the disclosure of the mineral resource estimate within 45 days of this news release.

Pine Bay project access and geology

J.J. O'Donell, Callinex's exploration manager, said: "The maiden resource estimate covers a small footprint on our extensive exploration land package in Manitoba. As part of our ongoing drilling campaign, we will test high-priority targets at Rainbow, Alchemist, Odin and Cabin with the objective of adding further resources."

The Pine Bay project consists of a group of 77 contiguous mineral claims (dispositions) and one mineral lease totalling 6,795 hectares. Both the Rainbow and Pine Bay mineral resources are located on the mineral lease 59, which totals 782 hectares. The project is located 14 kilometres east of the city of Flin Flon, Man., and access is gained by driving southeast 15 kilometres along provincial highway No. 10, heading north for an additional 10 kilometres along old provincial Highway No. 10 (approximately five kilometres) and the fully serviced Northstar Road.

The Rainbow and Pine Bay deposits are felsic-hosted VMS deposits that dip 78 degrees and 82 degrees (respectively) to the east, with the Rainbow deposit having a strike length of 310 metres and a maximum horizontal thickness of 32.0 metres. The Pine Bay deposit has a strike length of 190 metres and a maximum horizontal thickness of 42.0 metres. Massive sulphides have been intersected on the Rainbow deposit from 100 metres below surface to a depth of 897 metres from a total of 66 drill holes totalling 38,249 metres. Massive sulphides have been intersected on the Pine Bay deposit from 10 metres below surface to a depth of 375 metres from a total of 76 drill holes totalling 10,123 metres.

Callinex's Pine Bay project encompasses the majority of the Baker Patton complex (BPC), the largest exposed felsic (rhyolitic) volcanic accumulation in the Flin Flon portion of the Flin Flon/Snow Lake greenstone belt. This is especially important since the majority of the VMS deposits occurring within the Flin Flon belt of Saskatchewan and Manitoba are almost always hosted by rhyolitic flows and volcaniclastic rocks within predominantly mafic terranes. Of additional importance is that these felsic (rhyolitic) rocks only account for a small portion of the total volcanic pile (5 per cent to 10 per cent). Of particular exploration interest to Callinex's Pine Bay project is the very large exposure of intensely altered (chloritic, sericitic and silicic alteration) felsic rocks that have collectively been called the Baker Patton alteration zone, encompassing an area with a minimum footprint of 700 metres by 1,000 metres. A very large footwall alteration system such as this would normally be expected to be accompanied by a large VMS system and has consequently been the target of many exploration companies preceding Callinex.

Pine Bay project exploration

Jim Pickell, a member of Callinex's technical team, commented: "After working and contributing to the discovery of several significant deposits in the Flin Flon area, I've always been intrigued by the special geological setting in the Pine Bay area and its continued proven propensity to host prolific VMS systems. Nothing that I've seen in our current round of exploration reduces that initial level of optimism for the property."

The Rainbow deposit was initially discovered with a discovery hole in 2020. In a relatively short time frame, the company has carried out a number of extensive drill programs to define a high-grade copper maiden mineral resource at the Rainbow deposit. Additional drilling has targeted a number of high-priority targets resulting in the discovery of the nearby Alchemist and Odin prospects, which are not part of this maiden resource estimate.

The focus of the company is to further expand the size of the high-grade Rainbow deposit both laterally and at depth. The last deep hole at the Rainbow deposit, drill hole PBM-158, was the deepest and northernmost hole, which intersected the Yellow zone and returned 5.0 metres of 1.56 per cent copper equivalent (consisting of 1.45 per cent copper, 0.07 gram per tonne gold, 1.86 grams per tonne silver and 0.11 per cent zinc).

Follow-up drilling is also planned to step out vertically above and below Alchemist. The last reported drill hole of Alchemist, ALC-114, intersected 4.40 metres of 4.02 per cent copper equivalent, including 1.60 per cent copper, 5.14 per cent zinc, 0.40 gram per tonne gold and 21.78 grams per tonne silver.

The fully financed drill campaign is also targeting Odin, which is directly in between the Alchemist and Rainbow deposits. Drill hole PBM-191 intersected one of the highest precious metal intervals to date at Odin with 0.52 metre of 5.32 grams per tonne gold and 56.67 grams per tonne silver with trace copper and zinc and was interpreted to be on the Odin horizon.

The company is further exploring the high-grade historic Cabin deposit. In late 2016, the company intersected 10.3 metres grading 6.0 per cent zinc, 1.8 grams per tonne gold, 60.4 grams per tonne silver, 0.7 per cent copper and 0.4 per cent lead in drill hole 284-3-93-DPN (see news release dated Oct. 18, 2016). Since the discovery of Rainbow and now Alchemist, the company has a deeper understanding of how VMS deposits sit along the stacked horizons located within the main controlling growth fault corridor at the project. The company has now refined exploration target areas and is currently drill testing these targets to follow up on previous high-grade intersections.

Model parameters and methods for the Rainbow deposit and Pine Bay deposit resource estimates

The database for the mineral resource estimate for Rainbow deposit consisted of 104 drill holes (including 14 wedges) totalling 60,930 metres, of which a total of 66 drill holes totalling 38,249 metres intersected the mineralization wire frames used for the mineral resource estimate. The drill hole database contained assays for copper, zinc, gold, silver and lead as well as other metals of no economic importance.

The database for the mineral resource estimate for Pine Bay deposit consisted of 131 drill holes totalling 25,672 metres, of which a total of 76 drill holes totalling 10,123 metres intersected the mineralization wire frames used for the mineral resource estimate. The drill hole database contained assays for copper only. In October, 2022, Kirkham carried out data verification on the historical data and check sampling to validate the use of the database for estimation of the inferred resource at Pine Bay. The methodology employed for the resource estimation at Rainbow and Pine Bay is as follows:

• The estimate was carried out using separate block models constrained by 3-D wire frames of the individual mineralized zones. The block model comprises an array of blocks measuring 10 metres by two metres by 10 metres, which employ partial percentages for volumetric accuracy, with grades for copper, zinc, lead, silver and gold interpolated using ordinary kriging within the Rainbow deposit and inverse distance to the second power (ID2) weighting for the Pine Bay deposit for copper grades. Copper equivalent values were subsequently calculated from the interpolated block grades.
• The interpolation for Rainbow was carried out in two passes, with the first pass using a search radius along strike and down dip of 150 metres by 150 metres and 30 metres perpendicular to dip. Composites were restricted to a minimum of one composite and a maximum of 12 composites, with a maximum of three composites from any one drill hole. The second pass used a restricted search radius along strike and down dip of 60 metres by 60 metres and 30 metres perpendicular to dip. Composites were restricted to a minimum of six composites and a maximum of 18 composites, with a maximum of four composites from any one drill hole.
• The interpolation for the Pine Bay deposit was carried out in two passes, with the first pass using a search radius along strike and down dip of 150 metres by 150 metres and 60 metres perpendicular to dip. Composites were restricted to a minimum of one composite and a maximum of 12 composites, with a maximum of three composites from any one drill hole. The second pass used a restricted search radius along strike and down dip of 60 metres by 60 metres and 30 metres perpendicular to dip. Composites were restricted to a minimum of five composites and a maximum of 16 composites, with a maximum of four composites from any one drill hole.
• Bulk density was determined on each sample submitted to SGS's laboratories in Burnaby, B.C., measured by the gas pycnometer method on pulp samples. For each sample interval, subsamples were taken from each individual length of core and the weighted average for the sample used. Density values were interpolated on a block-by-block basis using an inverse distance to the second power for the Rainbow deposit. An average value of 2.90 tonnes per cubic metre was assigned to the Pine Bay deposit.
• Composite values have been capped in order to remove the effects of potential overestimation due to statistical outliers. Therefore, outlier values for each of the metals estimated within the Rainbow deposit were capped at the threshold levels of 7.5 per cent to 15 per cent copper, 6 per cent zinc, 20 to 30 grams per tonne silver and 1.5 grams per tonne gold. For the Pine Bay deposit, the threshold chosen for capping was 4 per cent to 4.5 per cent copper.
• The mineralized domain solids were defined using a combination of geological constraints and grade boundaries in addition to consideration of potential reasonable mining thickness. Intervals that were not sampled were assigned a zero grade.
• For all zones, blocks are classified as inferred if they are included within 150 metres of at least two drill hole intercepts. Blocks within 40 metres of the nearest intercept and 40 metres average for all composites, estimated by at least four drill holes and at least 12 composites were classified as indicated. However, an interpreted boundary is the final determination of indicated and inferred resources in order to remove outlier blocks and the spotted dog effect. In addition, continuous potentially underground mining shapes were created to demonstrate reasonable prospect of eventual economic extraction.

Qualified person

The contents of this news release have been reviewed and approved by J.J. O'Donnell, PGeo, the exploration manager of the company, and by Garth Kirkham, PGeo, FGC, president of Kirkham Geosciences Ltd., who is independent of the company. Mr. O'Donnell and Mr. Kirkham are qualified persons as defined by National Instrument 43-101. Mr. O'Donnell is the qualified person for all technical information in this news release, excluding the mineral resource estimate.

About Callinex Mines Inc.

Callinex Mines is advancing its portfolio of base-metal-rich and precious-metal-rich deposits located in established Canadian mining jurisdictions. The focus of the portfolio is highlighted by the rapidly expanding Rainbow and Alchemist deposits at its VMS-rich Pine Bay project, located near existing infrastructure in the Flin Flon mining district. The second asset in the portfolio is the Nash Creek project, located in the VMS-rich Bathurst mining district of New Brunswick. A 2018 PEA (preliminary economic assessment) generates a strong economic return with a pretax IRR (internal rate of return) of 34.1 per cent (25.2 per cent after tax) and NPV (net present value discounted at 8 per cent) of $230-million ($128-million after tax) at $1.25 per pound zinc. The third asset, the 100-per-cent-owned Point Leamington deposit in Newfoundland, is located in one of the richest VMS and gold districts in Canada. Callinex prepared a pit-constrained indicated mineral resource of 5.0 million tonnes grading 2.5 grams per tonne gold equivalent for 402,000 ounces gold equivalent (145,700 ounces gold, 60.0 million pounds copper, 153.5 million pounds zinc, 2.0 million ounces silver and 1.5 million pounds lead), a pit-constrained inferred mineral resource of 13.7 million tonnes grading 2.24 grams per tonne gold equivalent for 986,500 ounces gold equivalent (354,800 ounces gold, 110.2 million pounds copper, 527.3 million pounds zinc, 6.2 million ounces silver and 7.0 million pounds lead) and an out-of-pit inferred mineral resource of 1.7 million tonnes grading 3.06 grams per tonne gold equivalent for 168,500 ounces gold equivalent (65,400 ounces gold, 13.3 million pounds copper, 102.9 million pounds zinc, 1.4 million ounces silver and 2.6 million pounds lead).

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