Mr. Max Porterfield reports

CALLINEX INTERSECTS THE DESCENDENT IN 125M STEP-OUT AT THE PINE BAY PROJECT, MB

Callinex Mines Inc. has provided results from the recently completed drilling to expand the new high-grade copper, zinc, gold and silver Descendent discovery at the 100-per-cent-owned Pine Bay project located in the Flin Flon mining district of Manitoba (see news release dated Sept. 12, 2023).

Max Porterfield, president and chief executive officer, stated: "Today's results confirm yet another exciting discovery at our Pine Bay project, with potential to quickly build significant tonnage alongside our recently established resource base. The Descendent discovery has unique characteristics that make it an opportunity worth immediately seizing through additional drilling. This year's exploration campaign will be another exciting one where we will remain focused on growing Pine Bay into a tier 1 asset with numerous expanding high-grade discoveries."

Stepout drill hole DSC-112-W1 intersected the Descendent 110 metres vertically below and 50 m to the south of discovery hole DSC-111, and returned seven m of 1.71 per cent copper equivalent (CuEq) (0.13 per cent copper (Cu), 0.51 gram per tonne (g/t) gold (Au), 15.80 g/t silver (Ag) and 2.87 per cent zinc (Zn)), including 3.59 m of 2.30 per cent CuEq (0.08 per cent Cu, 0.46 g/t Au, 14.31 g/t Ag and 4.68 per cent Zn) and nine m of 0.65 per cent CuEq (0.41 per cent Cu, 0.20 g/t Au, 3.44 g/t Ag and 0.20 per cent Zn), including three m of 1.20 per cent CuEq (0.90 per cent Cu, 0.29 g/t Au, 5.19 g/t Ag and 0.15 per cent Zn). The Descendent remains open to the north and vertically below DSC-112-W1.

The intersection in DSC-112-W1 is the deepest result to date associated with the Descendent and is located 460 metres below PBM-024-W1 -- the most shallow hole to intersect the Descendent. PBM-024-W1, a 37 m stepout vertically above parent hole PBM-024, intersected four m of 1.37 per cent CuEq (0.53 per cent Zn, 0.92 g/t Au, 34.60 g/t Ag and 1.64 per cent Cu). Parent drill hole DSC-112 intersected the southern extent of the Descendent 50 m south and 25 m above the DSC-112-W1 intersections.

Jim Pickell, member of Callinex's technical team, and recipient of the Bill Dennis Prospector of the Year award for the discovery of the 777, Konuto and Photo mines, commented: "Although Callinex's Rainbow VMS [volcanogenic massive sulphide] deposit and its newly discovered Descendent VMS mineralization share many similar geological and mineralogical features, what sets the Rainbow and Descendent apart is the much larger stratigraphic footwall VMS feeder alteration system (possibly up to eight to 10 times larger) associated with the Descendent versus the Rainbow deposit. This same Descendent-associated footwall alteration package, with its spectacular 1,100-by-700-metre surface footprint, has both inspired and eluded previous explorers, who also believed that this extra-large alteration system was spatially associated with a correspondingly large to giant VMS deposit. It is also important to note that the elevated silver and zinc grades in the latest Descendent drilling appear to be quite similar to the near-surface, distal (to feeder) lower-grade portions of the Rainbow deposit that rapidly transition into thicker, higher-grade, copper-dominated massive sulphides at depth, closer to its proximal alteration (feeder) pipe."

The most significant section returned from drill hole DSC-111 is 7.14 m grading 1.70 per cent CuEq (3.34 per cent Zn, 0.29 g/t Au, 14.38 g/t Ag and 0.11 per cent Cu) with additional intersections, including 10.57 m grading 1.36 per cent CuEq (1.47 per cent Zn, 0.58 g/t Au, 16.51 g/t Ag and 0.26 per cent Cu). The results announced today confirm and validate a large geophysical target associated with discovery hole DSC-111 that projects along strike to the northeast for 340 m and at depth for 840 m that was previously identified in a borehole pulse electromagnetic survey of the hole.

The grades intersected to date at the Descendent are comparable with grades intersected at the top of Rainbow. At Rainbow, the average drill hole composite grades are 1.55 per cent CuEq (0.56 per cent Cu, 0.46 g/t Au, 1.63 per cent Zn and 9.27 g/t Ag) within the first 200 m (minus-100 m to minus-300 m elevation) of the deposit, which also remains open below the 900 m level. Descendent is interpreted to have the same vertical plunge and steeply dipping orientation as nearby Rainbow, Pine Bay and Alchemist deposits, which are located 1.4 kilometres, 0.9 km and 2.9 km away, respectively, and all within Callinex's mineral lease. The company's exploration thesis is that, like at Rainbow, the grades will continue to improve and transition into high-grade copper at depth with further drilling at Descendent.

J.J. O'Donnell, exploration manager for Callinex and former senior mine geologist at the 777 mine, stated: "Further testing of the Descendent horizon is warranted based on the geology, alteration patterns and assays returned by the most recent drill holes. Further testing of the Descendent horizon has a great opportunity to increase the overall value of the Pine Bay project, and I am excited for the upcoming 2024 drill program."

This Descendent 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. The new discovery is directly associated with a major alteration zone that is previously been identified at surface and spans 1,100 m by 700 m. 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, which the company is now intersecting with the Descendent discovery. 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-Snow Lake 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.

Peter Jones, member of Callinex's team and former chief executive officer of Hudbay Minerals, added: "The recent Pine Bay project NI [National Instrument] 43-101 mineral resource estimate was very encouraging, and I am excited about further extensions to known mineralization and new discoveries both along trend and in depth, at this underexplored part of the prolific Flin Flon greenstone belt."

Looking forward, the company will continue to aggressively expand the resource base with a focus on stepout drilling at Descendent. Additionally, the company will continue to advance its pipeline of discoveries at the Pine Bay project (Rainbow, Alchemist and target area Odin) through additional geophysical surveying and potential drill testing.

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 (QA/QC) 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) was 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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