Fox River Project Airborne Geophysical Survey Update

October 12, 2006

VANCOUVER — Callinan Mines Limited (the “Company”) is pleased to report that the airborne Versatile Time Domain Electro-Magnetics (“VTEM”) survey (announced August 21st in a Company news release) being performed by Geotech Airborne Services (“Geotech”) at the Fox River Project near Gillam in Northern Manitoba has confirmed the presence of the 07-5 geophysical anomaly reported in an April 5th, 2006 news release. The Fox River property is held in a joint venture with Bell Resources Corporation. Callinan is the operator for the Joint Venture, which covers approximately 167,000 hectares (413,000 acres).

The survey is comprised of approximately 6,000 line kilometers of flight path to be flow over most of the area. As of October 10th, 2006 the Survey is approximately 30% complete. Delays have been due to the weather conditions of the area. The Company believes that the VTEM survey technology has the ability to detect mineralization at much greater depths than previous surveys. In January this year, the Geotech VTEM system won Mining Magazine’s Exploration-Equipment award for 2005. For more info on the Geotech Airborne VTEM system please go to: http://www.geotechairborne.com

The Fox River Joint Venture is supervised by P. Deveaux, P GEO, a qualified person as defined by NI 43-101.

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.