Mr. J.J. O'Donnell reports

CALLINEX FILES TECHNICAL REPORT REGARDING ITS HIGH-GRADE MINERAL RESOURCE ESTIMATE AND PROVIDES EXPLORATION UPDATE AT ITS PINE BAY PROJECT IN MANITOBA

Callinex Mines Inc. has filed, on SEDAR, a National Instrument 43-101 -- Standards of Disclosure for Mineral Projects technical report to support the high-grade copper maiden mineral resource estimate for its 100-per-cent-owned Pine Bay project in Manitoba, previously announced in the company's news release dated July 10, 2023. The technical report, titled "NI 43-101 Technical Report -- Pine Bay Project -- Flin Flon, Manitoba," dated Aug. 24, 2023, was prepared for the company by Kirkham Geosystems Ltd.

The mineral resource estimate, contained within the mineral lease, consists of the Rainbow deposit with an indicated mineral resource of 3.44 million tonnes (Mt) at 3.59 per cent copper equivalent (CuEq) containing 272.4 million pounds (Mlb) CuEq (composed of 238.3 Mlb Cu (copper), 56.9 Mlb Zn (zinc), 37,600 ounces (oz) Au (gold), 692,800 oz Ag (silver) and 2.3 Mlb Pb (lead)) and an inferred mineral resource of 1.28 Mt at 2.95 per cent CuEq containing 83.4 Mlb CuEq (composed of 72.1 Mlb Cu, 19.5 Mlb Zn, 11,100 oz Au, 222,200 oz Ag and 800,000 lb Pb), and the Pine Bay deposit with an inferred mineral resource of one Mt at 2.62 per cent Cu containing 58.1 Mlb Cu.

The company's focus remains to continue its exploration campaign at depth and along the trend that hosts the deposits at Pine Bay. The technical team is eagerly awaiting the results from this continuing drilling campaign. To date, the company has drilled 6,455 metres of the previously announced fully financed campaign (see news release dated March 27, 2023).

The company is currently testing the high-priority target on the Cabin and Pine Bay horizons as part of its 2023 exploration campaign (see news release dated Jan. 30, 2023). Callinex's first discovery in 2016 at the project was at depth below the historic Cabin deposit, which intersected 10.3 m grading 6 per cent Zn, 1.8 grams per tonne (g/t) Au, 60.4 g/t Ag, 0.7 per cent Cu and 0.4 per cent Pb in drill hole 284-3-93-DPN (see news release dated Oct. 18, 2016). Additionally, drill hole PBM-024, one of the last holes completed in the vicinity, intersected 2.6 m of 3.4 per cent CuEq.

The high-grade intervals at the Cabin horizon are associated with a major alteration zone that was previously identified at surface and spans 1,100 m by 700 m, as supported by lithogeochemical data. Since the huge alteration zone seen at surface is believed to be structurally overturned, the exploration thesis is that the copper/zinc/gold/silver-bearing massive sulphides associated with this fluid mineralizing event would be preserved at depth. Typically, there is a correlation between the size of an alteration zone and the size of the VMS (volcanogenic massive sulphide) deposit it is associated with. The exploration model for large VMS deposits within the Flin Flon greenstone belt, such as the Lalor and 777 deposits, includes having several smaller deposits in close proximity to a large alteration system within a felsic volcanic centre.

The company will announce drill results and plans for the continuation of this year's exciting exploration campaign once assays are received from the current drill hole. Additionally, the company is grateful to have received a $500,000 grant from the Manitoba Mineral Development Fund (MMDF) to continue to advance the discoveries at Pine Bay. The MMDF was launched by the Manitoba government in 2020 with the specific goal of jump-starting mineral and economic development initiatives throughout the province. The MMDF aims to support new economic development opportunities that capitalize on existing assets across Manitoba.

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

The database for the mineral resource estimate for the Rainbow deposit consisted of 104 drill holes (including 14 wedges) totalling 60,930 m, of which a total of 66 drill holes totalling 38,249 m intersected the mineralization wireframes 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 m, of which a total of 76 drill holes totalling 10,123 m intersected the mineralization wireframes 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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