Callinex Discovers Two High Grade Copper, Gold, Silver and Zinc Lenses in the Flin Flon Mining District of Manitoba

Highlights:

• Drill hole PBM-111 intersected 3.09% copper, 0.75 g/t gold, 13.35 g/t silver, 1.88% zinc over 2.96m and a second interval that returned 4.12% copper, 0.22 g/t gold, 2.21 g/t silver, 0.06% zinc over 4.31m;
• Subsequent borehole EM results suggest an abrupt thickening and possible merging of the two base and precious metals rich massive sulphide lenses immediately to the north; and
• A drill has been mobilized to test the highly conductive source off-hole to the north of PBM-111.

VANCOUVER, Sept. 9, 2020 - Callinex Mines Inc. (the "Company" or "Callinex") (TSXV: CNX) (OTC: CLLXF) is pleased to announce the Rainbow discovery (the "Discovery") comprising two high-grade copper, gold, silver and zinc lenses at the Company's Pine Bay Project, located 16 kms away from Flin Flon, Manitoba (See Figure 1). The Rainbow discovery hole, PBM-111, intersected 2.96 metres of 3.09% copper, 0.75 g/t gold, 13.35 g/t silver, 1.88% zinc and a second interval of 4.31 metres of 4.12% copper, 0.22 g/t gold, 2.21 g/t silver, 0.06% zinc (See Table 1). The Rainbow discovery has been made on Callinex's mineral lease, less than 500m from a high-voltage power-line and 800m from a historic shaft with direct road access to processing facilities in Flin Flon (Figure 2). Based on assay results obtained from drillhole PBM-111 and a newly completed Borehole Pulse ElectroMagnetic ("BPEM") survey, the Company has mobilized a drill to commence a second hole to test a highly conductive off-hole anomaly defined to the north of drill hole PBM-111 (Figure 3). Click here to walk-through the Rainbow discovery.

Max Porterfield, President and CEO, stated, "The two high grade copper, gold, silver and zinc lenses discovered, coupled with subsequent borehole survey results, suggest we are at the early stages of a substantial discovery in Manitoba." Mr. Porterfield continued, "The community of Flin Flon has been through a storm with a great deal of uncertainty about its future with the impending shutdown of the 777 mine. We believe the Rainbow discovery has the potential to provide a bright future for Flin Flon and our shareholders."

The Rainbow discovery was made by testing a previously identified BPEM anomaly known as Anomaly A, a highly conductive 260m by 600m anomaly (See Figure 4 and Figure 5)(See News Release Dated July 21, 2020). Anomaly A is located at the intersection of a known mine horizon and probable paleofault (See Figure 2 and Figure 6). Drill hole PBM-111 intersected Anomaly A and returned 2.96m of 3.09% Cu, 0.75 g/t Au, 13.35 g/t Ag, 1.88% Zn at 892.04m down hole and a second interval of 4.31m of 4.12% Cu, 0.22 g/t Au, 2.21 g/t Ag, 0.06% Zn at 933.24m. The Rainbow discovery was preceded by over 400m of highly altered feldspar-phyric rhyodacite flow beginning at 454.45m downhole and coinciding with an Induced Polarization chargeability high isoshell (See Figure 7). Nearly all VMS deposits in the Flin Flon Greenstone Belt are immediately related to an alteration zone and the extent of which typically has a correlation to the deposit size.

A subsequent BPEM survey completed on drill hole PBM-111 revealed a highly conductive source off-hole and to the north. The strong off-hole anomaly is located 925m down hole and between two base and precious metals-rich massive sulphide lenses occurring at 892.04m and 933.24m (Figure 3). These results suggest an abrupt thickening and possible merging of the two massive sulphide lenses immediately to the north. The off-hole anomaly has a Tau of 80m/s which is often seen in other large discoveries made in the Flin Flon district such as the Lalor Mine.

Additionally, an initial interpretation of the results indicates that the vector for the first mineralized lens at 892.04m is to the south, while the second mineralized lens at 933.24m is to the north, increasing the potential strike extent of the Rainbow discovery. The typical strike extent for a lens in the Flin Flon greenstone belt is ~150m and the plunge extent is between 5-8 times longer than the strike.

Callinex's Pine Bay Project encompasses the majority of the Baker Patton Complex (BPC), the largest exposed felsic (rhyolitic) volcanic accumulation in the Flin Flon portion of the Flin Flon-Snow Lake Greenstone Belt. This is especially important since the majority of the VMS deposits occurring within the Flin Flon Belt of Saskatchewan and Manitoba are almost always hosted by rhyolitic flows and volcaniclastic rocks within predominantly mafic terranes. Of additional importance is that these felsic (rhyolitic) rocks only account for a small portion of the total volcanic pile (5-10%). Of particular exploration interest to Callinex's Pine Bay Project, is the very large exposure of intensely altered (chloritic, sericitic and silicic alteration) felsic rocks that have collectively been called the Baker Patton Alteration Zone, encompassing an area with a minimum of a 700m by 1000m footprint. A very large footwall alteration system such as this would normally be expected to be accompanied by a large VMS system and has consequently been the target of many exploration companies preceding Callinex.

J.J. O'Donnell, P.Geo, a qualified person under National Instrument 43-101 and a Consulting Geologist for Callinex, has reviewed and approved the technical information in this news release.

Figure 1: Flin Flon Mining District Region Overview

Figure 2: Northern Pine Bay Area Plan View with VTEM Channel 30

Figure 3: Borehole EM Survey Profile Showing Highly Conductive Off-hole Response Between Two High Grade Intersections

Figure 4: Pine Bay 3D View Looking Westerly with Plates A & B

Figure 5: Pine Bay 3D Plan View Looking Down the Plane of BPEM Plates A & B

Figure 6: Pine Bay Regional Plan View with VTEM Channel 30

Figure 7: Pine Bay IP Chargeability Section with BPEM Plates

QA / QC Protocols
Individual samples were labeled, placed in plastic sample bags, and sealed. Groups of samples were then placed in security sealed bags and shipped directly to SGS lab in Vancouver, BC for analysis. Samples were weighed then crushed to 75% passing 2mm and pulverized to 85% passing 75 microns in order to produce a 250g split. 35 elements including copper, zinc, lead and silver assays were determined by Aqua Regia digestion with a combination of ICP-MS and ICP-AES finish, with overlimits (>100 ppm Ag, >10,000 ppm Cu, >10,000 ppm Zn, and >10,000 ppm Pb) completed by fire assay with gravimetric finish (Ag) or Aqua Regia digestion with ICP-AES finish (copper, zinc, and lead). Gold was analyzed by fire assay. QA/QC included the insertion and continual monitoring of numerous standards, blanks, and duplicates.

About Callinex Mines Inc.
Callinex Mines Inc. (TSXV: CNX) (OTC: CLLXF) is advancing its portfolio of base and precious metals rich deposits located in established Canadian mining jurisdictions. The portfolio is highlighted by its Nash Creek and Superjack deposits in the Bathurst Mining District of New Brunswick. A 2018 PEA outlined a mine plan that generates a strong economic return with a pre-tax IRR of 34.1% (25.2% post-tax) and NPV8% of $230 million ($128 million post-tax). The projects have significant exploration upside over a district-scale land package that encompasses several high-grade mineral occurrences along a 20km trend. Click here to view a video overview of the Nash Creek Project.

Callinex has a project portfolio that also includes projects within the Flin Flon Mining District of Manitoba that are located 25km to an operating processing facility that requires additional ore.

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 the proposed drill program and the timing and amount of expenditures. Except as required under applicable securities laws, Callinex does not assume the obligation to update any forward-looking statement.

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SOURCE Callinex Mines Inc.