Callinan Mines Limited
TSX VENTURE : CAA
OTC Bulletin Board : CCNMF

Callinan Mines Limited

July 27, 2005 16:36 ET

Callinan Mines Reports Nickel Values from Thompson Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 27, 2005) - Callinan Mines Limited (TSX VENTURE:CAA)(OTCBB:CCNMF)

Positive and encouraging results have been achieved from the 2005 drilling program on the Phillips and Pine Projects along the Thompson, Manitoba nickel belt.

Callinan Mines has recently received assay results from this winter's Thompson drill program. A total of 767 samples were assayed from 7 diamond drill holes of which 3 were drilled at Phillips Lake and 4 were drilled at the Pine property.

Phillips Lake

Intercepts from the 3 holes drilled on the Phillips Lake project were very encouraging, and certainly indicative of further mineralization.
The deep, strong conductive zone on the Phillips Lake property, identified by Crone Geophysics and reported in the company's news release of Feb. 25th, 2005, remains untested. A hole designed to test the conductor was terminated before it reached the target due to unsafe ice conditions. This target will be tested when it is possible to begin the next drilling campaign.
Nickel grades from the hole appear to increase as they approach the conductor. The overall average of hole CAP3 totalled 338.45m of .23% Ni.



----------------------------------------------------------
From To Width Width Cu % Ni % Co %
(m) (m) (ft.) (m)
----------------------------------------------------------
120.80 459.25 1110.40 338.45 0.006 0.230 0.008
----------------------------------------------------------
including
----------------------------------------------------------
From To Width Width Cu % Ni % Co %
(m) (m) (ft.) (m)
----------------------------------------------------------
175.27 176.37 3.61 1.10 0.051 1.639 0.027
----------------------------------------------------------
179.60 182.20 8.53 2.60 0.046 0.718 0.016
----------------------------------------------------------
288.50 289.04 1.77 0.54 0.040 1.928 0.035
----------------------------------------------------------
438.73 448.30 31.40 9.57 0.003 0.420 0.010
----------------------------------------------------------

Hole CAP2 also produced anomalous nickel grades.
----------------------------------------------------------
From To Width Width Cu % Ni % Co %
(m) (m) (ft.) (m)
----------------------------------------------------------
120.80 459.25 1110.40 338.45 0.006 0.230 0.008
----------------------------------------------------------
including
----------------------------------------------------------
From To Width Width Cu % Ni % Co %
(m) (m) (ft.) (m)
----------------------------------------------------------
158.67 198.50 130.68 39.83 0.008 0.273 0.010
----------------------------------------------------------
288.50 289.04 1.77 0.54 0.040 1.928 0.035
----------------------------------------------------------
Hole CAP1 intersected nickel grades as follows:
----------------------------------------------------------
From To Width Width Cu % Ni % Co %
(m) (m) (ft.) (m)
----------------------------------------------------------
243.40 344.20 330.71 100.80 0.009 0.191 0.007
----------------------------------------------------------
including
----------------------------------------------------------
277.87 282.17 14.11 4.30 0.017 0.401 0.014
----------------------------------------------------------
288.02 303.65 51.28 15.63 0.021 0.341 0.013
----------------------------------------------------------


The higher nickel grades appear in serpentinized peridotite, mineralized with sulphides. A deep pulse E.M. survey will be carried out over the favourable area which may be followed by deep diamond drilling if warranted.

Pine

4 holes were drilled at the Pine Property, located on Setting Lake, which produced the following significant results. Two anomaly holes intersected sulphides that did not carry significant mineralization.

Hole CAS3, designed to test the extension of mineralization located by the previous operator, produced a near solid sulphide intercept grading at 2.04% nickel, plus other metals.



-------------------------------------------------------------------
From To Width Width Cu % Ni % Co % Pt Pd
(m) (ft.) (m) (g/T) (g/T)
-------------------------------------------------------------------
143.46 144.15 2.26 0.69 0.801 2.042 0.106 .153 .54
-------------------------------------------------------------------
This intercept is followed by a 60 foot (18.27m) section of .24%
nickel.
----------------------------------------------------------
From To Width Width Cu % Ni % Co %
(m) (ft.) (m)
----------------------------------------------------------
144.15 162.42 59.94 18.27 0.019 0.240 0.010
----------------------------------------------------------


"Where there's smoke, there's fire," president Muzylowski explained. "These are solid sulphides carrying ore grade polymetallic values. These results are very encouraging. The intercepts, although narrow, are at a vertical depth of 125m (410 ft) and justify a deep pulse E.M. survey, followed by a diamond drilling program focused on this area of values."

CAS4, which exhibited wide zones of sulphides, reported in the company's news release of Mar. 21st, 2005, also carried some nickel value as follows:



----------------------------------------------------------
From To Width Width Cu % Ni % Co %
(m) (m) (ft.) (m)
----------------------------------------------------------
195.56 199.00 11.29 3.44 0.042 0.227 0.007
----------------------------------------------------------
218.65 218.89 0.79 0.24 0.042 0.709 0.170
----------------------------------------------------------


These anomalous values were obtained in the southern end of the very strong conductor located in the bore hole survey. The data is being evaluated to determine whether more work to the north is justified.

Both Callinan's Pine and Phillips Lake properties are located in the Thompson Nickel Belt, on the same system of ultra mafic folds that contains INCO's Thompson, Soab North, Soab South and Birchtree mines and Falconbridge Mines' Bucko Lake Deposit. The Thompson and Birchtree Mines produced 67,869,968 and 25,820,540 lbs of nickel in 2003 respectively. Source: infomine.com

Assays were carried out by Acme Laboratories of Vancouver, BC. Pat Deveaux, P.Geo. is the company's qualified person as defined by NI43-101. Drilling was completed by Major Drilling of Flin Flon, Manitoba, and overseen by a qualified field geologist and a geotechnician, under the supervision of Pat Deveaux. The drill core was stored in wooden core trays until such a time as it could be labelled, logged, and transported to a facility in Snow Lake, Manitoba for splitting. The splitting of samples was performed by a qualified geotechnician. Once the mineralized intervals were split, one half of the split section was packaged in a plastic bag together with a tag corresponding to an entry in the sample book. The matching half of the sample was stored in a core tray for archive.

The samples were sorted, packed and shipped by freight to Acme Analytical Laboratories in Vancouver, BC.

The samples were analyzed for nickel copper and cobalt content by means of group 7 AR assay. Samples grading greater than 1% Nickel were assayed for platinum and palladium content by means of group 3b fire assay.

Callinan Mines is a well established Canadian mineral exploration company which owns a royalty and net profits interest in the Callinan Mine and the 777 Mine. Both mines are located in Flin Flon, Manitoba and are currently operated by Hudbay Minerals.

"Mike Muzylowski"

Mike Muzylowski

President & CEO

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

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