Callinan Mines Limited has entered into an agreement with Mike Muzylowski, President of the company, under which the Company has been granted the option to acquire a 100% interest in two claims in the Omenica Mining Division of British Columbia. The claims cover an area of 1210 hectares and are located approximately 80 km South West of Houston, British Columbia.
The claims are accessible by road and helicopter and were the subject of an exploration program by Amax Exploration Inc during the 1960’s. Amax Exploration carried out geological mapping, geochemical and geophysical surveys, (induced polarization and magnetometer) over part of the property. Seven diamond drill holes ( one was abandoned) were completed, outside the area of the copper, molybdenum geochemical anomaly. The anomaly appears to be 1.5 km long, approximately 0.5 km wide and still open. Hole # 5, drilled in a breccia zone returned 10 ft assaying 1.02% Cu & 5g/t Ag. (source: BC Department of Mines and Petroleum Assessment Reports).
Under the terms of the agreement, Mr. Muzylowski, who has owned the claims since September of 1994, prior to his appointment as President of Callinan, will be paid $50,000 on acceptance by the TSX Venture Exchange as reimbursement for expenses incurred and $200,000 on or before September 1, 2008 if the option is exercised. To maintain the option in good standing, Callinan must expend $500,000 on exploration of the claims prior to September 1, 2008. If the claims are placed into production, Mr. Muzylowski will be entitled to a 5% royalty on net smelter returns, of which one half or 2.5% can be repurchased by Callinan for $1,500,000. The agreement is subject to acceptance by the TSX Venture Exchange.
In other matters, Brian C. Irwin has been appointed a director of the company and Maryna Bilynska has been appointed corporate secretary. Mr. Irwin is a lawyer, associate counsel to Dumoulin Black LLP and is a director of a number of resource based companies. Ms. Bilynska has been executive assistant to Mr. Muzylowski since 1999.
On Behalf of the Board ,
CALLINAN MINES LTD.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.