Callinan Receives Net Profits Interest Payment from HudBay Minerals

VANCOUVER, Feb. 16 /CNW/ - Callinan Mines has received an interim payment of $2,870,477 from HudBay Minerals Inc. This payment represents 75% of an estimate of 6 2/3 % of the net profits from the 777 Mine in Flin Flon, Manitoba for the quarter ended December 31st, 2009. Callinan Mines receives payments from their net profits interest in the 777 Mine in Flin Flon, Manitoba quarterly. Operated by HudBay Minerals, the mine is expected to produce until 2019.

The company has a current cash balance in excess of $12 million, no debt, and has budgeted $3 million for their ongoing winter exploration programs in Snow Lake, Fox River and Island Lake, Manitoba.

    
    On Behalf of the Board of Directors,


    Mike Muzylowski

    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.
    

Statements contained in this press release may constitute forward-looking statements under Canadian securities legislation which are not historical facts and are made pursuant to the safe harbour provisions under United States securities laws. Such forward-looking statements are based upon the Company's reasonable expectations and business plan at the date hereof and are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates may be materially different from those estimated or anticipated future results, achievements or positions expressed or implied by those forward-looking statements.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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