Mr. Max Porterfield reports

CALLINEX DISCOVERS FOUR COPPER-ZINC-GOLD-SILVER RICH VMS LENSES IN A SINGLE DRILL HOLE AT THE PINE BAY PROJECT, MB

Callinex Mines Inc. has made a new high-grade copper, zinc, gold and silver discovery (the Descendent) at the company's 100-per-cent-owned Pine Bay project, located near Flin Flon, Man. The discovery hole, DSC-111, intersected four separate volcanogenic massive sulphide lenses (VMS) with significant base and precious metal values within a total core width of 67.7 metres. The most significant section returned 7.14 m grading 1.70 per cent copper equivalent (CuEq) containing 3.34 per cent Zn, 0.29 gram per tonne Au, 14.38 g/t Ag and 0.11 per cent Cu. Additional massive sulphides intersected include 10.57 m grading 1.36 per cent CuEq, with 1.47 per cent Zn, 0.58 g/t Au, 16.51 g/t Ag and 0.26 per cent Cu, and 2.15 m of 1.27 per cent CuEq, made up of 0.87 per cent Zn, 0.52 g/t Au, 18.3 g/t Ag and 0.43 per cent Cu. The intersection in DSC-111 is the deepest to date associated with the Cabin horizon and is located 350 metres below PBM-024 which intersected 2.58 m of 0.53 per cent Zn, 0.92 per cent Au, 34.60 g/t Ag and 1.64 per cent Cu (see news release dated May 1, 2017). The Descendent is situated 550 m from the Pine Bay deposit, 1.4 kilometres from the Rainbow deposit and 2.9 km from the Alchemist deposit, which are all located within a mineral lease.

Max Porterfield, president and chief executive officer, stated: "We are extremely excited by the Descendent discovery which indicates another, potentially very large, deposit to be located within the existing mineral lease at Pine Bay. This exploration success comes on the heels of the recently announced maiden mineral resource estimate at the project, which included the Rainbow and Pine Bay deposits." Mr. Porterfield added, "An interpretation of results from a recently completed borehole pulse electromagnetic survey on discovery hole DSC-111 is under way and will be immediately followed by aggressive stepout drilling on the Descendent."

J.J. O'Donnell, exploration manager, stated: "The distribution of the base and precious metal sulphides intersected by DSC-111 have the potential to become a significant discovery for Callinex. Geologically, the Cabin zone area has always been considered one of the most promising areas to host additional VMS deposits."

Jim Pickell, member of Callinex's technical team, added, "Given similar, zinc-dominant, but much thinner, massive sulphides in the near-surface portion of the Rainbow deposit, the thick analogous massive sulphide intersections in drill hole DSC-111 strongly suggest exceptional exploration potential at depth."

Since the discovery of Rainbow and Alchemist, Callinex's technical team has a deeper understanding of how the VMS deposits sit along the stacked horizons located within the main controlling growth fault corridor at the project. This refined geological-based target, supported by geophysical and geochemical data, led the company to renew exploration efforts in this area of the project and the discovery of the Descendent.

The Descendent was intersected at a down-hole depth of 1,318 metres and remains open in all directions. Many of the largest deposits within the Flin Flon greenstone belt have been discovered at depth, such as the 777 mine that was discovered at a down-hole depth of 1,278 m, the Lalor mine that was discovered at a down-hole depth of 781 m and the company's Rainbow deposit which was discovered 933 m down hole.

The abundance of zinc, gold and silver indicates that the hole may have intersected the edge of the VMS system similar to what occurs at the Rainbow deposit. Additionally, the significant width of the massive sulphide intervals suggests that the system is long-lived and robust. The four VMS lenses are separated by dikes and sills, which is typical in many VMS systems, and allows for the potential for one large massive sulphide body.

The geophysical interpretation also supports the geological interpretation. The company's geophysical data from previously drilled hole PBM-024 are modelled to have similar conductance as the intersected zone and extends for approximately 400 m along strike and 850 m in vertical extent. The intersected zones consist primarily of lower-conductivity or non-conductive minerals, including zinc. Several historic deposits at the Pine Bay project, along with the Centennial mine to the south, are poor geophysical conductors.

This discovery hole is located within the Baker Patton felsic complex, one of the largest and most highly altered accumulations of felsic rocks within the Flin Flon greenstone belt. A major alteration zone had previously been identified at surface and spans 1,100 m by 700 m as defined by values of more than 90 using the Hashimoto (Ishikawa et al.) alteration index, a quantitative approach to evaluate alteration trends that ranges from zero to 100. Since the huge alteration zone seen at surface is structurally overturned, the exploration thesis is that the massive sulphides associated with this 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 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 major felsic volcanic centre. Historic and recent exploration has identified seven VMS deposits, along with the new Descendent discovery, located in close proximity to the huge Baker Patton alteration zone.

Assay results are still pending from other samples taken from the Descendent discovery hole DSC-111. Earlier in the campaign drill hole PBM-194 was drilled to test the down-plunge extent of the Rainbow deposit but veered too far to the north and the deposit remains open at depth. Drill hole ALC-117 was drilled to test the Alchemist deposit but is interpreted to have veered just north of the plunge line and intersected two m of 1.90 per cent copper equivalent, including 1.44 per cent Cu, 0.14 gram per tonne Au, 7.76 g/t Ag and 0.80 per cent Zn. The Alchemist and target area Odin will continue to be followed up this winter after freeze-up allows access to necessary drill pads.

At the Descendent discovery, a BPEM (borehole pulse electromagnetic anomalies) survey was recently completed and results are being interpreted by Callinex's technical team. An aggressive fully financed stepout drilling campaign will immediately be carried out at the Descendent.

Mr. O'Donnell, PGeo, a qualified person under National Instrument 43-101, has reviewed and approved the technical information in this news release.

Quality assurance/quality control protocols

Individual samples were labelled, placed in plastic sample bags and sealed. Groups of samples were then placed in security-sealed bags and shipped directly to SGS lab in Vancouver, B.C., for analysis. Samples were weighed then crushed to 75 per cent passing two millimetres and pulverized to 85 per cent passing 75 microns in order to produce a 250-gram pulverized split. Thirty-five elements, including copper, zinc, lead and silver assays, were determined by aqua regia digestion with a combination of inductively coupled plasma mass spectrometry and inductively coupled plasma atomic emission spectroscopy finish, with overlimits rerun using an ore-grade analysis (two-acid digest ICP-AES). Gold was analyzed by fire assay. Specific gravity (sg) measured for each sample using the pycnometer and water and air method. QA/QC included the insertion and continual monitoring of numerous standards, blanks and duplicates.

About Callinex Mines Inc.

Callinex Mines is advancing its portfolio of base and precious metals-rich deposits located in established Canadian mining jurisdictions. The focus of the portfolio is highlighted by the rapidly expanding Rainbow deposit at its rich VMS Pine Bay project located near existing infrastructure in the Flin Flon mining district. Callinex prepared an indicated mineral resource on the Rainbow deposit of 3.44 million tonnes grading 3.59 per cent CuEq for 272.4 million pounds CuEq (238.3 Mlb Cu, 56.9 Mlb Zn, 37,600 oz Au, 692,800 oz Ag, 2.3 Mlb Pb), an inferred mineral resource on the Rainbow deposit of 1.28 Mt grading 2.95 per cent CuEq containing 83.4 Mlb CuEq (72.1 Mlb Cu, 19.5 Mlb Zn, 11,100 oz Au, 222,200 oz Ag, 800,000 lb Pb) and an inferred mineral resource at the Pine Bay deposit of one Mt grading 2.62 per cent Cu containing 58.1 Mlb Cu (see news release dated July 10, 2023). The second asset in the portfolio is the Nash Creek project located in the VMS-rich Bathurst mining district of New Brunswick. A 2018 preliminary economic assessment generates a strong economic return with a pretax internal rate of return of 34.1 per cent (25.2 per cent posttax) and net present value (8 per cent) of $230-million ($128 -million posttax) at $1.25 zinc (see news release dated May 14, 2018). 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 five Mt grading 2.5 g/t AuEq for 402,000 oz AuEq (145,700, oz gold, 60 Mlb copper, 153.5 Mlb zinc, two Moz silver, 1.5 Mlb lead), a pit-constrained inferred mineral resource of 13.7 Mt grading 2.24 g/t AuEq for 986,500 oz AuEq (354,800 oz gold, 110.2 Mlb copper, 527.3 Mlb zinc, 6.2 Moz silver, seven Mlb lead) and an out-of-pit inferred mineral resource of 1.7 Mt grading 3.06 g/t AuEq for 168,500 oz AuEq (65,400 oz gold, 13.3 Mlb copper, 102.9 Mlb zinc, 1.4 Moz Ag, 2.6 Mlb lead) (see news release dated Oct. 25, 2021).

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