Cal Claims Assays Confirm Near Surface Copper and Nickel Grades

July 31, 2007

VANCOUVER – Callinan Mines Limited (CAA – TSX.V) has recovered mineralized intercepts from their 2007 exploration program on the 100% owned “Cal Claims” in Northern Manitoba near Snow Lake. The intercepts have confirmed that copper mineralization exists near surface in an ultramafic sulphide system.

The widths and grades recovered from the spring program provide a solid base from which to continue exploration of the property.

Five holes of NP core were completed as part of the 2007 program. All holes intersected copper bearing sulphides with low nickel values in an ultramafic host. Of particular interest is hole CT-5. This hole, collared in massive sulphides, averaged 0.356% Cu and 0.161% Ni over the first 113.93 meters.  A 23.6 meter section immediately below the overburden averaged 0.538% Cu and 0.173% Ni. The drilling was conducted in an area 140m by 150m, located in the central portion of a 250m by 360m magnetic anomaly.

President Mike Muzylowski explained that, “The work we’ve done this year has indicated that this mineralization is shallow with a gentle dip. This has enhanced the possibility of a future ‘open pit’ style deposit.  There are also indicated extensions to the structure signifying a potential for expansion of the project.”

The Company plans to do petrographic and metallurgical studies of the samples to understand the potential recoverability of this material. If recovery rates are good, the Company plans to carry out advanced exploration on the Cal Claims. Additional claims have been staked to cover potential extensions of the established mineralized zones that have been indicated by geophysics.

The property is underlain by gneissic biotite feldspar greywacke intruded by xenolithic ultramafic serpentinized peridotite.

Samples from the program were split in two and logged by the field geologist at a company facility in Snow Lake, Manitoba. One half of each sample is being stored at the facility. The other halves were analyzed by Acme Analytical Laboratories of Vancouver. Sample widths are core lengths.

Hole CT-1

From (m)

To (m)

Width(m)

Cu (%)

Ni (%)

Co(%)

8.10

36.00

27.90

0.590

0.174

0.020

166.40

173.80

7.40

1.194

0.280

0.034

Hole CT–2

From (m)

To (m)

Width(m)

Cu (%)

Ni (%)

Co(%)

24.70

47.25

22.55

0.526

0.128

0.017

Hole CT-3

From (m)

To (m)

Width(m)

Cu (%)

Ni (%)

Co(%)

103.05

113.40

10.35

0.582

0.218

0.027

Hole CT–4

From (m)

To (m)

Width(m)

Cu (%)

Ni (%)

Co(%)

90.94

97.17

6.23

0.669

0.162

0.021

146.10

163.70

17.60

0.847

0.152

0.019

Including

158

163.7

5.70

1.100

0.171

0.022

Hole CT-5

From (m)

To (m)

Width(m)

Cu(%)

Ni (%)

Co(%)

9.40

123.33

113.93

0.338

0.161

0.003

Including

9.40

33.00

23.60

0.532

0.173

0.020

 

The Cal Claims program was conducted under the direction of Pat DeVeaux, a qualified person as defined by National Instrument 43-101 who has reviewed and approved the content of this news release.

The TSX Venture Exchange has not reviewed or approved and is not responsible for the adequacy or accuracy of this news release.

 

On behalf of the board of directors,

 

Mike Muzylowski

Mike Muzylowski