Callinex Mines' Emerging High-Grade Copper-Gold Discoveries in Manitoba

• Callinex Mines has made significant progress in 2023, growing rainbow deposit resources to 4.7M tons indicated & inferred and discovering new zones at the Descendant target.
• The Descendant discovery shows potential to be a large system, with wide intercepts over 350m of strike length identified so far.
• Callinex is focused on using the drill bit to continue expanding resources, aiming to double the current ~6M ton resource base over the next 12-18 months.
• The company believes it could outline 30-50M tons through further exploration of targets like Descendant on the Pine Bay project.
• With progress made and copper prices expected to remain strong, Callinex sees itself in an increasingly strong position moving into 2024.

About Callinex Mines

Callinex Mines (TSXV: CNX) is a Canadian exploration company focused on expanding high-grade copper, gold, silver, and zinc deposits at its Pine Bay project located in the Flin Flon Mining District of Manitoba. The project sits on a district scale land package, containing four VMS deposits over a 10km long favourable trend. Since acquiring Pine Bay in 2014, Callinex has had success growing resources through new discoveries like the high-grade Rainbow deposit.

Callinex entered 2023 with around 42,000m of drilling completed and plans to continue expanding known zones while testing new targets. By mid-year the company had published an updated resource estimate on the Rainbow deposit, outlining 3.44Mt indicated at 3.59% CuEq. The company also achieved one of its main goals of discovering new zones, intersecting high-grade copper and zinc mineralization at the Descendant target in September 2023.

Interview with President & CEO, Max Porterfield

Overview of Key Deposits

Rainbow Deposit

• Discovered by Callinex in 2020, this very high-grade deposit encompasses three closely-stacked zones which start 100m below surface.
• An updated resource in July 2023 estimated 3.44Mt indicated at 3.59% CuEq (and additional inferred resources of 1.28 Mt at 2.95% CuEq), making Rainbow one of the highest-grade undeveloped copper projects in Canada.
• The zones remain open at depth below and along strike, providing substantial room for further expansion.

Pine Bay Deposit

• Shallow drilling by Callinex has outlined an inferred resource of 1.0 Mt at 2.62% Cu containing 58.1 Mlb Cu so far, which is open for expansion laterally and at depth.
• Callinex has completed 6,455m of drilling as part of a fully funded 2023 exploration campaign with results pending.

Descendant Discovery

• Four new copper, zinc, gold and silver bearing mineralized lenses discovered.
• With a similar vertical extent to Rainbow’s deposits identified so far and located in an area with a very large hydrothermal system, there is strong evidence Descendant could host a sizable deposit.
• A fully funded drill campaign will undertake an immediate step-out program at the Descendent.

Exploration Upside

Callinex’s exploration focus through 2023 is expanding the new Descendant discovery, stepping out along trend and at depth. Pending results from a recently completed drill campaign will provide early clues to the potential scale of this zone. Combined with continued growth anticipated from Rainbow, the company believes it could double the current 6M ton global resource base over the next 12-18 months. Looking farther ahead, significant exploration targets remain untested elsewhere on the large Pine Bay land package. CEO Max Porterfield sees potential for ultimately outlining between 30M and 50M tons through disciplined exploration drilling over the coming years - pointing to the multiple discoveries made since 2018 despite weak copper pricing for much of that period.

Copper Market Tailwinds

With base metals like copper in deficit for 2023 and prices forecast to remain historically strong through the electric vehicle transition, Porterfield expects an increasingly constructive environment for base metal developers. Callinex has timed its exploration progress at Pine Bay well to take advantage of favorable supply/demand trends emerging. And with de-risking of two potential mines at Rainbow and Pine Bay already significantly underway, the company could be fast-tracked to production should copper prices spike materially higher. Callinex looks to be positioning itself amongst the most leveraged publicly-traded copper vehicles as the energy transition continues accelerating.

Conclusion

After strong technical execution towards initial resource delineation goals laid out for 2023, Callinex Mines has clear line of sight on establishing one or more very high-grade copper mines at its Pine Bay project in a Tier I Canadian jurisdiction. With copper market fundamentals increasingly positive looking out to 2024 and beyond, investors have a unique opportunity to position ahead of drill-driven re-ratings as Callinex’s exploration success continues expanding the resource inventory. The current share price around $1.80 represents a substantial discount from the $4.37 achieved in April 2023 on the heels of promising Rainbow drill results. As Callinex keeps the drills spinning with a strengthened cash position, key catalysts on the horizon include final assay results from the high potential Descendant target (Q1 2024), anticipated resource growth, and further discoveries across the company’s 56,000ha district-scale land package surrounding Flin Flon, Manitoba.