Callinan Mines Limited

Callinan Mines Limited

January 10, 2007 10:00 ET

Callinan Mines Limited: Airborne Survey Reveals New Drill Targets at Fox River

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 10, 2007) - Armed with four additional targets from an ongoing airborne survey, Callinan Mines Limited (TSX VENTURE:CAA) and joint venture partner Bell Resources Corporation are preparing to commence drill testing on their 167,000 hectare Fox River nickel prospect east of Gillam, Manitoba.

Mike Muzylowski, Callinan's President and CEO, made the announcement today following receipt of further VTEM electromagnetic survey results that located four additional anomalies in the area of inferred faulting where a highly conductive, 1,000-metre by 600-metre anomaly has been previously defined.

President Muzylowski explained:

"Several of these highly conductive anomalies are coincident with broad magnetic highs, which could represent intrusions into the ultramafic faulting of the earth's crust. This is extremely relevant to us, because our Fox River joint venture lands cover the projected structural extension of the Thompson nickel belt.

"We are pleased that the VTEM surveys are detailing previously undetected conductors along this area of structural breaks and faulting. These results further support our geological model, which indicates that this area could host massive sulphide mineralization."

Preparation for the 20 hole Phase I drill program at Fox River continues with field crews making significant headway in the preparation of the camp and the drill pads at the anomaly sites. Drilling is targeted to commence before the end of January.

The aerial survey is being conducted by Geotech Airborne Services of Aurora, Ontario, using their award-winning Versatile Time Domain Electro-Magnetics (VTEM). The survey will encompass some 6,000 line kilometers of flight path over 167,000 hectares (413,000 acres) of the Callinan-Bell Fox River Project lands. To date, Geotech has completed 78 percent of the survey.

The Fox River exploration program is being conducted under the supervision of Mr. Pat DeVeaux, P.Geo., a Qualified Person as defined by NI 43-101.

On behalf of the Board of Directors,


Mike Muzylowski, President & CEO

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