Mr. Max Porterfield reports

OSAWI GOLD CORP. FORMED TO ADVANCE CALLINEX'S GOLD EXPLORATION PORTFOLIO IN MANITOBA

Callinex Mines Inc. has formed Osawi Gold Corp., a wholly owned subsidiary created to hold and advance the company's Gossan Hill gold project and Island Lake gold project. This strategic move is designed to unlock the potential of Callinex's gold assets while it continues to focus on its core base and precious metals volcanogenic massive sulphide (VMS) portfolio, with a specific emphasis on the Point Leamington project in Newfoundland, Canada.

Highlights:

• Callinex Mines has formed a new wholly owned subsidiary, Osawi Gold, to hold and advance its Manitoba gold exploration portfolio.
• The Gossan Hill gold project includes the formerly producing high-grade gold and silver Gurney gold mine.
• The Island Lake gold project covers over 70 kilometres of strike extent of the Island Lake greenstone gold belt and encompasses the historic high-grade gold Ministik deposit.
• Callinex is evaluating strategic initiatives to create value from its Manitoba gold portfolio, aiming to deliver significant upside for shareholders without dilution.

Max Porterfield, president and chief executive officer of Callinex Mines, stated: "The creation of Osawi Gold Corp. marks an exciting step in our strategy to maximize the value of our high-grade gold exploration assets in Manitoba. By establishing a dedicated subsidiary for the company's Manitoba gold projects, we aim to enhance focus on these promising gold properties while exploring strategic initiatives that will deliver significant value to our shareholders." Mr. Porterfield continued, "Ultimately, we believe Osawi Gold Corp. will be positioned for success in the current and foreseeable gold market, creating prosperity for all stakeholders."

Gossan Hill gold project overview

The Gossan Hill gold project covers 2,935 hectares in the Flin Flon-Snow Lake greenstone belt and encompasses: the formerly producing Gurney gold mine, and a five km northeast-southwest-trending shear zone that hosts numerous gold occurrences including the Gossan Hill gold deposit. Reports from previous operators, accessed through records at the Manitoba Department of Energy and Mines, show the Gurney gold mine's two years of production, from 1937 to 1939, produced a total of 25,164 ounces (8.64 grams per tonne) of gold and 71,953 ounces (24.73 g/t) of silver from 90,500 tonnes of mined material milled. An interesting feature, unusual in the gold deposits of Manitoba, is the exceptionally high silver:gold ratio of 2.86:1 (as opposed to a more usual ratio of 1:6 or less). These reports further show gold-bearing diamond drill intersections wider than 20 metres. The company cautions that work done by previous operators was conducted before the implementation of National Instrument 43-101. Quality control methods by the previous operator are unknown, and the accuracy of the information cannot and should not be relied upon.

Since the Gurney gold mine shut down in 1939 no exploration has been conducted over the historic mine and there is potential for future exploration to discover the continuation of high-grade gold and silver mineralization at depth. The Tartan gold mine currently being advanced by Canadian Gold Corp. is a historic deposit in the area that has been successful in a similar exploration approach.

Modern exploration at the Gossan Hill gold project has focused on exploring for and delineating gold and silver mineralization at the Gossan Hill gold deposit, which is located along the five km shear zone. The southernmost end of the five km shear zone that hosts the Gossan Hill gold deposit, intersects and adjoins obliquely to the shear-zone that hosts the formerly producing Gurney gold mine. The project hosts multiple gold zones within quartz veining associated with the large shear zone, with historical drilling by Callinan Mines and subsequently Callinex yielding notable results, which are outlined below in Table 1. The mineralization remains open along strike and at depth, presenting opportunities for resource expansion.

The Gossan gold project's strategic location near existing mining infrastructure and a work force enhances its development potential, making it a key asset in Osawi Gold's portfolio.

Island Lake gold project overview

The Island Lake gold project is an approximately 40,000-hectare land package with significant potential for discovery and resource development of high-grade gold and other critical minerals. The project is located within the Island Lake area in east-central Manitoba extending to the Ontario border and represents a district scale highly prospective exploration opportunity spanning over a 72 km strike length of the Island Lake greenstone belt. The belt has hosted one historic gold mine, Island Lake and the high-grade Ministik gold deposit, which has been subjected to advanced stage mineral exploration with 380 holes encompassing over 25,500 metres. Additionally, numerous occurrences of gold have been found within the project area, with gold mineralization hosted within veins, lenses and stringers of quartz.

The expanded Island Lake land package encompasses the Ministik or High Rock gold deposit, which is a historical high-grade gold deposit. First staked in 1934, development was primarily completed in the 1980s, including exploration, underground work and installation of a test mill. Despite a historic resource of drill indicated reserves and some pilot operations, it was never taken to large-scale sustained production and operations ceased in 1997. There has been no exploration conducted on the main vein that hosts the deposit since 1987 with only three shallow holes completed to test an adjacent mineralized vein in 2004.

Highlights of the deposit include:

• A reported historic resource of drill-indicated reserves from the Main vein of 166,439 ounces of gold with an in situ grade of 0.39 ounce/ton (13.37 grams per tonne).
• A 180-ton surface bulk sample was mined and milled in 1988, grading 0.361 oz/ton Au (12.13 g/t) over 12 feet (approximately 3.7 m).
• Recoveries from the bulk sample achieved approximately 80-per-cent recoveries of the contained gold with a mill circuit modified to allow separation of free gold on site.
  • A smaller 25-ton surface bulk sample taken in 1997 achieved 76-per-cent recovery.
• The deposit has a drill indicated strike length of 520 m and down-dip extension to at least 245 m and is supported by 85 drill holes across 7,426 metres of drilling.

The company cautions that work done by previous operators was conducted before the implementation of National Instrument 43-101. Quality control methods by the previous operators are unknown, and the accuracy of the information cannot and should not be relied upon.

The company's commitment to Garden Hill First Nation

Osawi does not intend to advance the Island Lake project without a working relationship with the Garden Hill First Nation built upon respect. This process begins with listening, understanding and aligning objectives with their values, priorities and long-term vision for their community.

The company deeply respects the cultural, spiritual and environmental significance of the lands within first nations. The company's approach to exploration and potential mine development prioritizes responsible stewardship, ensuring that any activities align with the values and priorities of their community. The company is committed to fostering open, transparent and respectful engagement to build a relationship that honors the rights, traditions and aspirations of the Garden Hill First Nations, a member of the Island Lake Tribal Council.

Strategic initiatives

Callinex is actively evaluating strategic initiatives to create value from the Gossan Hill and Island Lake gold projects through Osawi Gold. These initiatives may include fostering new relationships with stakeholders or other value-enhancing strategies designed to unlock the significant upside potential of these assets. By separating the Manitoba gold projects into a dedicated subsidiary, Callinex aims to continue its focus on its flagship Point Leamington project while positioning Osawi to capitalize on the strong gold market, ultimately delivering value to shareholders without dilution.

Details of historic resource estimate

The Island Lake gold project historical resource estimate was reported in the annual report of Big Horn Development Corp. for the financial year ended May 31, 1987, and is cited above for historical purposes only. As the historical estimate was prepared prior to the implementation of NI 43-101, a technical report does not support the historical resource estimate. The historical estimate uses drill indicated reserves, which is not a category under NI 43-101 or CIM standards. Although the terminology uses the word reserves, the company notes that these are not reserves under the current definition of NI 43-101 and CIM as they are not supported by either a prefeasibility study or feasibility study. The reliability of the historical estimate is unknown but considered relevant by the company as it represents a significant target for future exploration work by the company. The assumptions, parameters and methods used to calculate this historical resource estimate are not known to the company. The qualified person has not made any attempt to reclassify the estimates according to current NI 43-101 standards of disclosure or the CIM definitions. In order for these resources to be current, the company will be required to conduct additional drilling on the Island Lake property. The company is not treating this estimate as current mineral resources or mineral reserves as defined in NI 43-101.

Qualified person

The technical information contained in this news release has been reviewed and approved by Aaryn Hutchins, PGeo, a qualified person under NI 43-101. Ms. Hutchins is a consultant of the company and is independent of the company. In connection with the review of the above noted technical disclosure, the qualified person has reviewed the applicable assessment reports filed by the previous operators with the government of Manitoba.

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 100-per-cent-owned Point Leamington deposit in Newfoundland, located in one of the richest VMS (volcanogenic massive sulphide) and gold districts in Canada. Callinex prepared a pit-constrained indicated mineral resource of 5.0 million tonnes grading 2.5 g/t AuEq (gold equivalent) for 402,000 oz AuEq (145,700 oz gold, 60.0 Mlb copper, 153.5 Mlb zinc, 2.0 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, 7.0 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). Additionally, the company is permitting the Rainbow deposit at its rich VMS Pine Bay project located near existing infrastructure in the Flin Flon mining district and advancing the Nash Creek project in New Brunswick's Bathurst mining district.

We seek Safe Harbor.