Callinan Closes First Tranche Of Private Placement

November 3, 2006

Callinan Mines Limited announces that it has now closed the first tranche of its previously announced non-brokered private placement, consisting of 3,932,000 Flow-Through Units at a price of $1.25 per Flow-Through Unit and 585,000 Non-Flow-Through Units at a price of $1.15 per Non-Flow-Through Unit, to raise total proceeds of $5,587,750. The Flow-Through Units and the Non-Flow-Through Units each consist of one common share and one-fourth (¼) of one share purchase warrant entitling the holder to purchase an additional common share up to November 2, 2007 at a price of $1.50 per share. The shares included in the Flow-Through Units, excluding any common shares issued upon the exercise of warrants comprising the Flow-Through Units, will be qualified as “flow-through” shares under the Income Tax Act (Canada).

Callinan paid an aggregate of $299,300 in cash as finders’ fees and issued Finder’s Warrants to purchase up to 211,610 common shares of Callinan, each Finder’s Warrant entitling the holder to purchase an additional common share up to November 2, 2007 at a price of $1.50 per share.

The securities are subject to a hold period and may not be traded until March 3, 2007, except as permitted by applicable securities legislation and the TSX Venture Exchange.

Callinan intends to use the proceeds from the sale of the Flow-Through Units for the exploration of Callinan’s Fox River, Pine and Sneath projects located in Manitoba and the Coles Creek project located in British Columbia. Callinan intends to use the proceeds from the sale of the Non-Flow-Through Units for new project acquisitions, working capital and general corporate purposes of Callinan.

Callinan expects to close a second trance of its non-brokered private placement shortly.

“Mike Muzylowski”

Mike Muzylowski

President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.