Callinex Files Technical Report Regarding its High-Grade Mineral Resource Estimate and Provides Exploration Update at its Pine Bay Project in Manitoba

Highlights:

• Filed NI 43-101 technical report to support the high-grade copper maiden mineral resource estimate for its Pine Bay Project;
• Completed 6,455m of drilling as part of the fully funded 2023 exploration campaign and awaits results; and
• Callinex receives a $500,000 grant from the Manitoba Mineral Development Fund to advance the discoveries at Pine Bay.

VANCOUVER, Aug. 28, 2023 - Callinex Mines Inc. (the "Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is pleased to announce that it has filed on SEDAR a National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") technical report (the "Technical Report") to support the high-grade copper maiden mineral resource estimate for its 100% owned Pine Bay Project (the "Project") in Manitoba, previously announced in the Company's news release dated July 10, 2023. The Technical Report titled "NI 43-101 Technical Report - Pine Bay Project - Flin Flon, Manitoba" dated August 24, 2023 was prepared by Kirkham Geosystems Ltd. ("Kirkham") for the Company.

The mineral resource estimate, contained within the mineral lease, consists of the Rainbow deposit with an Indicated Mineral Resource of 3.44 Mt at 3.59% copper equivalent ("CuEq") containing 272.4 Mlb CuEq (comprised of 238.3 Mlb Cu, 56.9 Mlb Zn, 37.6 koz Au, 692.8 koz Ag, 2.3 Mlb Pb), an Inferred Mineral Resource of 1.28 Mt at 2.95% CuEq containing 83.4 Mlb CuEq (comprised of 72.1 Mlb Cu, 19.5 Mlb Zn, 11.1 koz Au, 222.2 koz Ag, 0.8 Mlb Pb) and the Pine Bay deposit with an Inferred Mineral Resource of 1.0 Mt at 2.62% Cu containing 58.1 Mlb Cu (Pine Bay Project Block Models Projected to Surface).

The Company's focus remains to continue its exploration campaign at depth and along the trend that hosts the deposits at Pine Bay. The technical team is eagerly awaiting the results from this ongoing drilling campaign. To date, the Company has drilled 6,455m of the previously announced fully-funded campaign (See news release dates March 27, 2023).

The Company is currently testing the high priority target on the Cabin and Pine Bay horizons as part of its 2023 exploration campaign (Cabin Horizon Long Section) (See news release dated January 30, 2023). Callinex's first discovery in 2016 at the Project was at depth below the historic Cabin deposit which intersected 10.3m grading 6.0% Zn, 1.8 g/t Au, 60.4 g/t Ag, 0.7% Cu and 0.4% Pb in drill hole 284-3-93-DPN (See news release dated October 18, 2016). Additionally, drill hole PBM-024, one of the last holes completed in the vicinity, intersected 2.6m of 3.4% CuEq.

The high-grade intervals at the Cabin horizon are associated with a major alteration zone that was previously identified at surface and spans 1,100m by 700m as supported by lithogeochemical data. Since the huge alteration zone seen at surface is believed to be structurally overturned, the exploration thesis is that the copper/zinc/gold/silver bearing massive sulphides associated with this fluid mineralizing event would be preserved at depth. Typically, there is a correlation between the size of an alteration zone and the size of the VMS deposit it is associated with. The exploration model for large VMS deposits within the Flin Flon Greenstone Belt, such as the Lalor and 777 deposits, includes having several smaller deposits in close proximity to a large alteration system within a felsic volcanic centre.

The Company will announce drill results and plans for the continuation of this year's exciting exploration campaign once assays are received from the current drill hole. Additionally, the Company is grateful to have received a $500,000 grant from the Manitoba Mineral Development Fund ("MMDF") to continue to advance the discoveries at Pine Bay. The MMDF was launched by the Manitoba government in 2020 with the specific goal of jump-starting mineral and economic development initiatives throughout the province. The MMDF aims to support new economic development opportunities that capitalize on existing assets across Manitoba.

Table 1: Pine Bay Project Resource Estimate Summary at 1.3% CuEq Base Case Cut-off

Rainbow Deposit Indicated Mineral Resource

Rainbow Deposit and Pine Bay Deposit Inferred Mineral Resource

The database for the mineral resource estimate for Rainbow Deposit consisted of 104 drill holes (including 14 wedges) totalling 60930m, of which a total of 66 drill holes totaling 38,249m intersected the mineralization wireframes used for the mineral resource estimate. The drill hole database contained assays for copper, zinc, gold, silver and lead as well as other metals of no economic importance.

The database for the mineral resource estimate for Pine Bay Deposit consisted of 131 drill holes totalling 25,672m, of which a total of 76 drill holes totaling 10,123m intersected the mineralization wireframes used for the mineral resource estimate. The drill hole database contained assays for copper only. In October 2022, Kirkham carried out data verification on the historical data and check sampling to validate the use of the database for estimation of the inferred resource at Pine Bay. The methodology employed for the resource estimation at Rainbow and Pine Bay is a follow:

• The estimate was carried out using separate block models constrained by 3D wireframes of the individual mineralized zones. The block model is comprised of an array of blocks measuring 10m x 2m x 10m which employ partial percentages for volumetric accuracy, with grades for Cu, Zn, Pb, Ag and Au interpolated using Ordinary Kriging within the Rainbow deposit and Inverse Distance to the Second Power (ID²) weighting for the Pine Bay deposit for copper grades. Copper equivalent values were subsequently calculated from the interpolated block grades.
• The interpolation for Rainbow was carried out in two passes with the first pass using search radii of along strike and down dip of 150m x 150m and 30m perpendicular to dip. Composites were restricted to a minimum of 1 and a maximum of 12 composites, with a maximum of 3 composites from any one drill hole. The second pass used a restricted search radii along strike and down dip of 60m x 60m and 30m perpendicular to dip. Composites were restricted to a minimum of 6 and a maximum of 18 composites, with a maximum of 4 composites from any one drill hole.
• The interpolation for the Pine Bay deposit was carried out in two passes with the first pass using search radii of along strike and down dip of 150m x 150m and 60m perpendicular to dip. Composites were restricted to a minimum of 1 and a maximum of 12 composites, with a maximum of 3 composites from any one drill hole. The second pass used a restricted search radii along strike and down dip of 60m x 60m and 30m perpendicular to dip. Composites were restricted to a minimum of 5 and a maximum of 16 composites, with a maximum of 4 composites from any one drill hole.
• Bulk density was determined on each sample submitted to SGS laboratories in Burnaby, BC measured by the gas pycnometer method on pulp samples. For each sample interval, sub-samples were taken from each individual length of core and the weighted average for the sample used. Density values were interpolated on a block-by-block basis using an inverse distance to the second power for the Rainbow deposit. An average value of 2.90 t/m³ was assigned to the Pine Bay Deposit.
• Composite values have been capped in order to remove the effects of potential overestimation due to statistical outliers. Therefore, outlier values for each of the metals estimated within the Rainbow deposit were capped at the threshold levels of 7.5%-15% copper, 6% zinc, 20-30 gpt silver and 1.5 gpt gold. For Pine Bay deposit the threshold chosen for capping was 4%-4.5% copper.
• The mineralized domain solids were defined using a combination of geological constraints and grade boundaries in addition to consideration of potential reasonable mining thickness. Intervals that were not sampled were assigned a zero grade.
• For all zones, blocks are classified as Inferred if they are included within 150m of at least two drill hole intercept. Blocks within 40m of the nearest intercept and 40m average for all composites, estimated by at least four drill holes and at least 12 composites were classified as Indicated. However, an interpreted boundary is the final determination of indicated and inferred resources in order to remove outlier blocks and the "spotted dog" effect. In addition, continuous potentially underground mining shapes were created to demonstrate "reasonable prospect of eventual economic extraction."

The contents of this news release have been reviewed and approved by J.J. O'Donnell, P. Geo, the Exploration Manager of the Company, and by Garth Kirkham, P.Geo., FGC, President of Kirkham Geosystems Ltd., and Georgi Doundarov, P.Eng., Chief Executive Officer of Magemi Mining Inc., who are both independent of the Company. Mr. O'Donnell, Mr. Kirkham and Mr. Doundarov are Qualified Persons as defined by NI 43-101. Mr. O'Donnell is the Qualified Person for all technical information in this news release, excluding the Mineral Resource Estimate.

Callinex Mines Inc. (TSXV: CNX) (OTCQX: CLLXF) is advancing its portfolio of base and precious metals rich deposits located in established Canadian mining jurisdictions. The focus of the portfolio is highlighted by the rapidly expanding Rainbow and Alchemist deposits at its rich VMS Pine Bay Project located near existing infrastructure in the Flin Flon Mining District. The second asset in the portfolio is the Nash Creek Project located in the VMS rich Bathurst Mining District of New Brunswick. A 2018 PEA generates a strong economic return with a pre-tax IRR of 34.1% (25.2% post-tax) and NPV8% of $230 million ($128 million post-tax) at $1.25 Zinc. The third asset, 100% owned Point Leamington Deposit in Newfoundland, is located in one of the richest VMS and Gold Districts in Canada. Callinex prepared a pit constrained Indicated Mineral Resource of 5.0 Mt grading 2.5 g/t AuEq for 402 koz AuEq (145.7 koz gold, 60.0 Mlb copper, 153.5 Mlb zinc, 2.0 Moz silver, 1.5 Mlb lead), an pit constrained Inferred Mineral Resource of 13.7 Mt grading 2.24 g/t AuEq for 986.5 koz AuEq (354.8 koz gold, 110.2 Mlb copper, 527.3 Mlb zinc, 6.2 Moz silver, 7.0 Mlb lead) and an out-of-pit Inferred Mineral Resource of 1.7 Mt grading 3.06 g/t AuEq for 168.5 koz AuEq (65.4 koz gold, 13.3 Mlb copper, 102.9 Mlb zinc, 1.4 Moz Ag, 2.6 Mlb lead).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the ability to complete the proposed drill program and the timing and amount of expenditures. Except as required under applicable securities laws, Callinex does not assume the obligation to update any forward-looking statement.

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SOURCE Callinex Mines Inc.