Callinex Commences Step-out Drilling on Descendent Discovery at the Pine Bay Project, MB

Highlights:

• New drill hole DSC-112 is a 200m step-out from Descendent discovery;
• The Descendent contains four Cu-Zn-Au-Ag bearing mineralized lenses; and
• Large geophysical target associated with intersections that projects along strike to the northeast for 340m and at depth for 840m.

VANCOUVER, Oct. 5, 2023 - Callinex Mines Inc. (the "Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is pleased to announce that the Company has commenced immediate step-out drilling to define the new high-grade copper, zinc, gold and silver Descendent discovery at the Company's 100% owned Pine Bay Project (the "Project"), located near Flin Flon, MB (See news release dated September 12, 2023) (Pine Bay Project Plan View). The discovery hole, DSC-111, intersected four separate volcanogenic massive sulphide lenses ("VMS") with significant base and precious metal values within a total core width of 67.7m.

The most significant section returned 7.14m grading 1.70% copper equivalent ("CuEq") containing 3.34% Zn, 0.29 g/t Au, 14.38 g/t Ag, and 0.11% Cu with additional massive sulphides intersected including a 10.57m grading 1.36% CuEq containing 1.47% Zn, 0.58 g/t Au, 18.3 g/t Ag and 0.43% Cu. A borehole pulse electromagnetic survey completed on DSC-111 identified a large geophysical target associated with the intersections that projects along strike to the northeast for 340m and at depth for 840m (Descendent Discovery Long Section).

Step-out drill hole DSC-112 is testing the Descendent 200m vertically below discovery hole DSC-111. The intersection in DSC-111 is the deepest result to date associated with the Cabin Horizon and is located 350 meters below PBM-024 which intersected 2.58m of 0.53% Zn, 0.92% Au, 34.60 g/t Ag, and 1.64% Cu (See news release dated May 1, 2017). The Descendent is situated 550m from the Pine Bay deposit, 1.4km from the Rainbow deposit and 2.9km from the Alchemist deposit, which are all located within a mineral lease.

The anticipated vertical extent being tested between PBM-024 and DSC-112 is 550m. By comparison the Rainbow deposit has been delineated in the recently announced maiden 43-101 resource estimate to a vertical extent of 865m and remains open at depth.

Once drill hole DSC-112 is completed, it will then be used as a parent drill hole to set a number of wedges off it to test up plunge between the initial intersection and DSC-111. Additionally, discovery hole DSC-111 will also be used to set a number of wedges to test up plunge to the PBM-024 intersection.

The Descendent was intersected in drill hole DSC-111 at a down-hole depth of 1,318m and remains open in all directions. Many of the largest deposits within the Flin Flon Greenstone Belt have been discovered at depth. The abundance of zinc, gold and silver in DSC-111 indicates that the hole may have intersected the edge of the VMS system similar to what occurs at the Rainbow deposit. Additionally, the significant width of the massive sulphide intervals suggests that the system is long-lived and robust. The four VMS lenses are separated by dykes and sills, which is typical in many VMS systems, and allows for the potential for one large massive sulphide body.

This discovery hole is located within the Baker Patton Felsic Complex, one of the largest and most highly altered accumulations of felsic rocks within the Flin Flon Greenstone Belt. A major alteration zone had previously been identified at surface and spans 1,100m by 700m as defined by values of more than 90 using the Hashimoto (Ishikawa et al.) Alteration Index, a quantitative approach to evaluate alteration trends that ranges from 0 to 100. Since the huge alteration zone seen at surface is structurally overturned, the exploration thesis is that the massive sulphides associated with this 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-Snow Lake Greenstone Belt, such as the Lalor and 777 deposits, includes having several smaller deposits in close proximity to a large alteration system within a major felsic volcanic center. Historic and recent exploration has identified seven VMS deposits, along with the new Descendent discovery, located in close proximity to the huge Baker Patton alteration zone.

Mr. O'Donnell, P.Geo., a qualified person under National Instrument 43-101, has reviewed and approved the technical information in this news release.

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 deposit at its rich VMS Pine Bay Project located near existing infrastructure in the Flin Flon Mining District. Callinex prepared an indicated mineral resource on the Rainbow deposit of 3.44 Mt grading 3.59% CuEq for 272.4 Mlb CuEq (238.3 Mlb Cu, 56.9 Mlb Zn, 37.6 koz Au, 692.8 koz Ag, 2.3 Mlb Pb), an inferred mineral resource on the Rainbow deposit of 1.28 Mt grading 2.95% CuEq containing 83.4 Mlb CuEq (72.1 Mlb Cu, 19.5 Mlb Zn, 11.1 koz Au, 222.2 Koz Ag, 0.8 Mlb Pb) and an inferred mineral resource at the Pine Bay deposit of 1.0 Mt grading 2.62% Cu containing 58.1 Mlb Cu (see news release dated July 10, 2023). 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 (see news release dated May 14, 2018). 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), a 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) (see news release dated October 25, 2021).

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, obtaining satisfactory results from its 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.