Callinan proposes to extend term of warrants

    
    /NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES/

    Trading Symbol: CAA: TSX VENTURE
    

VANCOUVER , Oct. 23 /CNW/ - Callinan Mines Limited ("Callinan") proposes to extend by one year the term of outstanding share purchase warrants exercisable for 628,250 common shares of Callinan and issued pursuant to a private placement, the first tranche of which closed on November 2, 2006 (warrants outstanding exercisable for 625,75 common shares) and the second tranche of which closed on December 19, 2006 (warrants outstanding exercisable for 2,500 common shares). The warrants were originally exercisable for one year from the date of issuance. They were extended in October 2007 for one year and the exercise price was amended to $1.25 per share from $1.50 per share, and further extended in October 2008 for one year thereafter.

The proposed extension of the term of the warrants to November 2, 2010 for the first tranche and December 19, 2010 for the second tranche is subject to regulatory approval.

    
    Mike Muzylowski
    President and 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.
    

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

For further information: Braden Maccke, 736 Granville Street, Suite 1100, Vancouver, BC, V6Z 1G3, Telephone: [phone], Toll-Free: 1-877-228-5210, Fax: [phone], Email: [email protected], Website: www.callinan.com