Drilling Underway At Coles Creek

August 14, 2006

VANCOUVER – The diamond drilling portion of Callinan’s Coles Creek exploration program near Houston, B.C. is underway. Two holes have intersected mineralization consistent with the type of quartz porphyry system anticipated in the geological model of the area created by Callinan.

Holes in altered granodiorite porphyry, quartz porphyry and quartz feldspar porphyry containing widely mineralized sections have been described by the field team and project manager as an encouraging start to this drill program.

Project manager Pat DeVeaux explained, “the traces of chalcopyrite, molybdenite and galena with pyrite are classic porphyry style mineralization, indicative of the type of system that we are looking for.”

The crew is currently drilling from their second setup, located 1200 m southwest of the first drill location. This third hole is designed to test a target located by induced polarization (IP) survey below an area containing mineralized chip samples taken during the 2005 prospecting program. The samples assayed at 0.25% to 2.62% copper, 0.040 to 3.05g/t gold, and 0.051% to 0.403% molybdenum.

The drill program will consist of at least 4,000 meters of drilling. Logging and sampling of the drill core is being done on site, and select mineralized sections have been sent to Acme Analytical Laboratories of Vancouver for assay ahead of the other samples. These assays will help to determine the significance of the mineralization in the context of this porphyry system.

Peter Walcott and Associates have completed the initial IP and magnetic surveys on the property, and have located new drill targets. It is likely that Callinan will expand the proposed drill program to assess these additional targets.

Updates on the Coles Creek program will be published regularly on Callinan.com.

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