An anonymous director reports

CALLINEX ANNOUNCES PRELIMINARY MAGNETOTELLURIC (MT) GEOPHYSICAL SURVEY RESULTS AT THE PINE BAY PROJECT, FLIN FLON MINING DISTRICT, MB

Callinex Mines Inc. has released preliminary results from the recently announced magnetotelluric (MT) geophysical survey on the company's 100-per-cent-owned Pine Bay project located in the Flin Flon mining district of Manitoba (see news release dated Jan. 29, 2024). The survey is being completed to add to Callinex's robust geophysical data set and further aid exploration as Callinex focuses on expanding its numerous high-grade copper-, gold-, silver- and zinc-rich volcanogenic massive sulphide (VMS) deposits at the project.

The company has received preliminary results from the MT survey over the Pine Bay where a one-kilometre line of MT data has been collected and processed. MT is a geophysical tool that is used in mineral exploration to identify systems that produce conductive minerals such as copper, gold and silver, and mapping of geologic structures and features such as faults and folds. The system is known to have a depth penetration from 50 metres to several kilometres below the surface.

Preliminary results from the MT survey have, to date, tightly defined the known Pine Bay deposit as well as the known Pine Bay horizon/structure that hosts the mineralization. Additionally, the survey data have highlighted a sizable low-resistivity target emerging at depth, which could potentially represent the fold limb of the recently announced Descendent discovery (see news releases dated Sept. 12, 2023, and Jan. 22, 2024). Previously, low resistivity has been a physical rock property the company has used successfully in exploration for high-grade VMS deposits at the project. For example, the company targeted low-resistivity targets identified through an induced polarization (IP) geophysical survey, which was critical in the initial discovery of the Rainbow deposit.

All the deposits discovered to date at the Pine Bay project have a very steep dip and plunge, and sit along a number of tight folds. Of particular interest is mapping the structure at depth between the Pine Bay deposit and the emerging Descendent discovery where mineralized horizons/folds are interpreted to converge at depth. Deposits that sit at the nose of a fold can host significantly wider lenses of mineralization and with it the potential to add significant volume more quickly.

Based on these exciting preliminary results, the company has mobilized Abitibi Geophysics, in partnership with Zonge International, to expand the MT survey over the Pine Bay, Descendent, Alchemist and target area Odin. The survey will cover three kilometres over each of the respective areas instead of the originally planned one km survey lines. The longer survey lines over each area will provide a higher confidence data set and better resolution at depth. The survey will no longer be planned to go over the Rainbow deposit, as advised by Abitibi and Zonge, due to its proximity to the high-voltage hydroelectric power line that sits in close proximity that severely impacts the quality of the survey data.

The number of deposits at Pine Bay are 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 Descendent discovery is directly associated with a major alteration zone that has 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 (see news release dated Jan. 22, 2024). Typically, there is a correlation between the size of an alteration zone and the size of the VMS deposit it is associated with. The company is completing the MT survey to help provide additional information about the depth, location and potential of the Descendent, Rainbow and other deposits at the project.

Looking forward, the company remains focused on expanding the current resource base through additional stepout drilling, with plans for an aggressive 2024 exploration campaign. Callinex is building upon an indicated mineral resource on the Rainbow deposit of 3.44 million tonnes (Mt) grading 3.59 per cent copper equivalent (CuEq) for 272.4 million pounds (Mlb) CuEq (238.3 Mlb copper (Cu), 56.9 Mlb zinc (Zn), 37,600 ounces (oz) gold (Au), 692,800 oz silver (Ag) and 2.3 Mlb lead (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 and 800,000 lb Pb) and an inferred mineral resource at the Pine Bay deposit of 1.0 Mt grading 2.62 per cent Cu containing 58.1 Mlb Cu (see news release dated July 10, 2023).

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

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 Mt grading 3.59 per cent CuEq for 272.4 Mlb CuEq (238.3 Mlb Cu, 56.9 Mlb Zn, 37,600 oz Au, 692,800 oz Ag and 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 and 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 gold equivalent for 402,000 oz AuEq (145,700 oz gold, 60 Mlb copper, 153.5 Mlb zinc, two million oz silver and 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 and 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 and 2.6 Mlb lead) (see news release dated Oct. 25, 2021).

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