Successful Coles Creek Drill Program Provides Numerous Targets FOR 2007

November 8, 2006

VANCOUVER, B.C.—Callinan Mines Limited is pleased to announce that the recently completed first phase of the diamond drilling program on its Coles Creek copper prospect near Houston, B.C., has located mineralized zones that represent prime targets for follow-up exploration in 2007.

Callinan President and CEO Mike Muzylowski said the eight-hole, 4,495-metre drill program intersected three wide sections of mineralization, from 750 to 400 meters apart, “that collectively indicate an extensive porphyry system.”

He added that these specific targets will undergo follow-up drilling next year. The area of interest, totalling 2.5 square km in the centre of the company’s tenures, will be further drilled to define and expand this mineralization. Other promising targets, including mineralized outcroppings, geophysical and geochemical anomalies and satellite imagery features, occur on the company’s recently expanded property, which now totals 13,456-hectares.

The project’s chief geological consultant, Pat DeVeaux, noted that certain host rocks and mineralization at Coles Creek bear a resemblance to the structures at the nearby Huckleberry mine, 10 km northeast of Coles Creek, operated by Imperial Metals. These intercepts include chalcopyrite and molybdenite in sections of diorite, granite and granodiorite, with increased amounts of mineralization occurring in “lapilli tuffs” (volcanic debris flows). While this is not indicative of complete similarity, it does indicate that the Coles Creek rocks may be of similar origin.

Large sections of Coles Creek drill intercepts also exhibited quartz porphyry breccia, mineralized with magnetite, pyrite, chalcopyrite and molybdenite.

“We’re very encouraged by this season’s progress,” Mr. Muzylowski concluded. “The presence of three separate types of altered intrusive rocks represent a multi phase system, and Callinan looks forward to its spring 2007 drilling program that will enable us to better define the extent of this vast and promising structure.”

Core from the 2006 drill program was split and logged on site, and samples were sent to Acme Analytical Laboratories in Vancouver for assay. The Company will report all assay results at such time as they all are available.

The Coles Creek program is under the supervision of Mr. DeVeaux, a qualified person as defined by National Instrument 43-101, who has reviewed and approved this release.

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