Callinan Increases Private Placement by $750,000

September 28, 2006

For Immediate Release

Further to its news release of September 15, 2006, Callinan Mines Limited is pleased to announce that it has increased the number of Flow-Through Units to be sold under the private placement from 3,200,000 Units to 3,800,000 Units to raise additional proceeds of $750,000. The other terms of the Flow-Through Unit portion of the private placement, as well as the terms of the Non-Flow-Through Unit portion of the private placement, remain unchanged and Callinan now expects to raise aggregate proceeds of $7,050,000 under the private placement.

The proceeds to be realized from the sale of the additional Flow-Through Units will also be used mainly for the exploration of Callinan’s Fox River project located in Manitoba, and the Coles Creek project located in British Columbia.

The private placement, as amended, is subject to acceptance by the securities regulatory authorities.

On behalf of the Board of Directors


“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.