Drilling Commences on Gossan Gold Project

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^{Published in Business and Finance on Monday, November 8th 2010 at 8:10 GMT by Market Wire}  

Drilling Commences on Gossan Gold Project

VANCOUVER, Nov. 3 /PRNewswire/ - Callinan Mines has commenced exploration activity on the recently optioned Gossan claims, located near the community of Cranberry Portage, Mb.  The work program will consist of approximately ten diamond drill holes, totaling approximately 3,000 meters. Targets will include known gold bearing structures identified in government assessment reports. The program has been designed with holes at 25 meter intervals. "This program is an effort to determine tonnage and grade per vertical meter," explains Callinan President Mike Muzylowski. "If this testing shows promise, further drilling will occur."

The 3,679 hectare property was once the site of the formerly producing Gurney Gold Mine. The project last operated in the 1930s and extracted gold from a mineralized contact shear zone that runs the length of the property.  Reports of previous operators, accessed through records at the Manitoba Department of Energy and Mines, show previous gold bearing diamond drill intersections along a structure nearly four kilometers in length. Intersections tested by previous operators returned assays of 4.05 grams of gold per tonne and 42.86 grams of silver per tonne over 12.48 meters, including 8.40 grams of gold per tonne and 96.34 grams of silver per tonne over 4.5 meters, and 17.76 grams of gold per tonne and 91.54 grams of silver per tonne over 1.5 meters. Callinan cautions that work done by previous operators was conducted before the implementation of National Instrument 43-101 and it has not verified any of the reported results from work on the property. Quality control methods employed by the previous operator are unknown, and the accuracy of the information cannot and should not be relied upon.

The gold mineralization at the Gossan Property is hosted in a sheared diorite/gabbro, and a sheared felspar porphyry structure containing quartz carbonate stringers. The property is accessible by an all weather road, and by rail.

On Behalf of the Board of Directors,

"Mike Muzylowski"

Mike Muzylowski

All of the Company's exploration programs are conducted under the direction of Pat Deveaux, P.Geo, a qualified person as defined by National Instrument 43-101, who has reviewed and approved the contents of this release.

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.

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.

SOURCE Callinan Mines Ltd.