VANCOUVER, July 19, 2011 /CNW/ - Calico Resources Corp. (TSX-V: CKB) (the "Company" or "Calico") announces that it has received permission to execute the Grassy Mountain Project drilling program from the Oregon Department of Geology & Mineral Industries (DOGAMI) and the United States Bureau of Land Management (BLM). "We are pleased with the efficiency of the permit approval process and appreciate the timely delivery by both the state and federal agencies." Said William Wagener, President of Calico Resources. The Company received final approval for the acquisition from the TSX on 09 June 2011, submitted the required permit applications and received final approvals for the drill program on 15 July 2011.  Drilling is scheduled to commence in late July.

The planned drill program includes 14 holes totaling 12,500 feet of diamond drilling. Program objectives include; 1) confirmation of historic drilling, 2) in-fill drilling to validate the geologic model and 3) step out drilling to test the limits of mineralization.  Drilling is targeted at the underground minable portion of the resource and will be conducted on patented mining claims utilizing existing roads, water wells and other infrastructure. (Reference Calico press release dated May 3, 2011 for high grade intercepts.)

The drill contractor (M2 Drilling of Coeur d` Alene, ID) has been selected and drilling is scheduled to commence the last week in July.  ALS Chemex has been selected to provide analytical services.  A technical field office and core processing facility has been leased and refurbished in Vale, Oregon. The current program is expected to be completed in October 2011.

Calico is committed to operating in a manner consistent with "sustainable development" principles. The Company is executing a plan to deliver on a strategy designed to increase shareholder value and is confident that in so doing, it will benefit the employees, communities and other stakeholders in the areas in which it operates.

On behalf of the Board,

"W. S. Wagener"

William S. Wagener
President & 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.