Calico Initiates Mine Permitting Process for Grassy Mountain

Vancouver February 21, 2012 � Calico Resources Corp. (TSX-V: CKB, OTCQX: CVXHF) (the �Company� or �Calico�) is pleased to report that the Oregon Department of Geology and Mineral Industries (DOGAMI) has accepted Calico�s Notice of Intent (NOI) and Memorandum of Understanding (MoU) for the Grassy Mountain Project.  �This is an all-important first phase of the mine permitting process that will run in parallel with the environmental data collection and our continued exploration/development of the Grassy Mountain Project.  As part of this phase, DOGAMI and the Company will prepare a permitting process timeline.� said Bill Wagener President & CEO.  The Company is extremely pleased with the active response and cooperation it has received from all the governing agencies regarding the Grassy Mountain Project.

The NOI serves as official notification to the State of Oregon that Calico plans to construct an underground mine and surface mill complex to develop the Grassy Mountain gold resource located in Malheur County, Oregon.  The NOI is submitted as a first-step in the �pre-application phase�.  During the pre-application phase, the Company, DOGAMI (as the facilitating agency) along with other key State agencies, determine the environmental and other studies required to be completed prior to the submission of a completed application.

The MoU is an agreement between the State and Calico whereby the additional costs incurred by the State agencies associated with the pre-application phase are reimbursed by the Company.

On behalf of the Board,

William S. Wagener
President and CEO

"Neither 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."

For more information please call:

Terri Anne Welyki
Vice-President of Corporate Development
(604) 681-6855