Callinan Mines Limited
TSX VENTURE : CAA

Callinan Mines Limited

December 20, 2006 12:38 ET

Callinan Closes Second Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 20, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Further to the news release of Callinan Mines Limited (TSX VENTURE:CAA) issued on November 3, 2006 announcing the close of the first tranche of a non-brokered private placement, Callinan announces that it has now closed the second tranche of the private placement, consisting of 140,000 Units at a price of $1.15 per Unit, to raise total proceeds of $161,000. The Units each consist of one common share and one-fourth (1/4) of one share purchase warrant entitling the holder to purchase an additional common share up to December 19, 2007 at a price of $1.50 per share.

Callinan paid $3,680 in cash as finders' fees and issued Finder's Warrants to purchase up to 2,800 common shares of Callinan in connection with the second tranche, each Finder's Warrant entitling the holder to purchase an additional common share up to December 19, 2007 at a price of $1.50 per share.

The securities are subject to a hold period and may not be traded until April 20, 2007, except as permitted by applicable securities legislation and the TSX Venture Exchange.

The proceeds from the sale of the Units will be used for new project acquisitions, working capital and general corporate purposes of Callinan.

Mike Muzylowski, President and CEO

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the completion of private placements and 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 contemplated private placements and the timing and amount of expenditures. Callinan does not assume the obligation to update any forward-looking statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information