Callinan Mines Limited
OTC Bulletin Board : CCNMF

Callinan Mines Limited

December 07, 2005 15:56 ET

$540,000 Flow-Through Unit Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 7, 2005) - Callinan Mines Limited (TSX VENTURE:CAA) announces that it will conduct a non-brokered private placement of up to 1,200,000 units of Callinan at a price of $0.45 per unit to raise $540,000. Each unit is comprised of one common share and one common share purchase warrant, each warrant entitling the holder to purchase one additional common share of Callinan at a price of $0.55 for a period of 12 months from the date of closing. The shares included in the units are to be qualified as "Flow-Through" shares under the Income Tax Act (Canada).

No commissions or finder's fees are payable on the private placement.

Proceeds from the private placement will be used for the exploration of the Company's Cole Creek property located in the Omineca Mining Division in British Columbia.

This private placement is subject to acceptance by the securities regulatory authorities.

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.