Gossan Hill Results Show Greater Widths, Drilling to Commence at Pine Bay

VANCOUVER - Callinan Mines (TSX.V-CAA, OTCBB-CCNMF) has received complete assays from its recent drill program at Gossan Hill in Northern Manitoba. All 32 holes completed as part of the program returned gold and silver mineralization in encouraging widths and concentrations.

The Company has also received assays of additional samples from previously reported diamond drill hole GOS 28. With the new samples incorporated, the zone now averages 4.60 grams of gold per tonne and 15.13 grams of silver per tonne over 23.81 meters of core length. The intersection occurs between 267.99 meters and 291.80 meters.

True widths are estimated to be 60% of core widths

Additional widths of lower grade gold and silver mineralization are present on both sides of the main zone reported above.

The Gossan Hill property consists of 3,679 hectares of mining claims near the town of Cranberry Portage, Manitoba. The claims are the host of a historically producing mine, as well as the alteration zone that hosts the mineralization. The winter drilling program at Gossan Hill consisted of 32 holes (one abandoned) for a total of 5,997 metres, before the program was suspended for spring breakup.

The Company plans to conduct a summer program at Gossan Hill, consisting of of an extensive mapping and sampling program designed to expand the company's understanding of the gold-bearing structure, and search for similar structures along the alteration zone. The summer program will also include continued diamond drilling to further expand the zone of mineralization. Future plans also include a laboratory bench test to determine the recovery rate of the gold and silver.

Callinan Mines maintained a QA/QC program at all stages of exploration. Drill core recovery was calculated, measured and recorded at the Gossan Hill Property before being cut and sampled. Samples were split in half, one half of each sample being kept for storage and the other half placed in a pre-labeled plastic bag, tagged with the sample number and recorded in the log. Callinan QA/QC samples were inserted into the group of samples and shipped to Acme Analytical Laboratories in Vancouver, BC, where they were crushed, split, and pulverized to 250 gram samples at 200 mesh. Pulp samples were then assayed by Aqua Regia digestion ICP-ES analysis (24 elements) and assayed for gold and silver by fire assay method. The lab employs internal quality control by assaying pulp duplicates and inserting quality control standards of predetermined values and a blank sample.

Pine Bay

The Company is also pleased to report that drilling permits have been received for their Pine Bay property in Northern Manitoba near Flin Flon.

The Pine Bay property is the host of a known VMS deposit, estimated in 1973 by engineering firm Watts Griffiths and McOuat to contain 607,978 tonnes grading 3.93% copper. Readers are cautioned that estimates are historic in nature, do not comply with national instrument 43-101 and should not be relied upon.

Since acquiring the property by way of option in July of 2009, Callinan has conducted both airborne and ground based electromagnetic surveys over the known zone, isolating drill-ready targets along strike and down plunge. Drill testing will begin immediately to ascertain if the known mineralization is part of a deeper, more extensive system. The company also plans to conduct in-hole geophysics to isolate possible extensions and undiscovered mineralized lenses.

Proposed Spin Out

Callinan is currently proposing a re-organization that will see its exploration properties, including the Gossan Hill and Pine Bay properties, become part of a new exploration company by way of plan of arrangement. Pending shareholder approval at a special meeting to be held on June 7, 2011, Callinan's shareholders of record on the effective date, which will follow shortly after the meeting date, will receive shares of the new exploration company by way of distribution.

On Behalf of the Board of Directors,

Mike Muzylowski

All of Callinan's exploration programs are conducted under the direction of J.J. O'Donnell, P.Geo, a qualified person as defined by national instrument 43-101, who has reviewed and approved the contents of this release.

Neither the 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.

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