Callinan Royalties and Estrella Gold Corporation Complete Financing

TSXV: CAA

VANCOUVER, May 16, 2014 /CNW/ - Callinan Royalties Corporation ('Callinan', the 'Company') (TSXV: CAA) has acquired 4,000,000 units (the "Units") of Estrella Gold Corporation ('Estrella') (TSXV:EST) at a price of $0.05 per Unit pursuant to a private placement. Each Unit consists of one common share (a "Share") of Estrella and one share purchase warrant (a "Warrant"), with each Warrant exercisable to purchase one further common share of Estrella (a "Warrant Share") at a price of $0.10 until May 15, 2017.

The Shares acquired by Callinan represent approximately 9.16% of the currently issued and outstanding common shares of Estrella, on an undiluted basis and without giving effect to the exercise of the Warrants. If the Warrants are exercised, Callinan will acquire an additional 4,000,000 Shares and will then hold 8,000,000 Shares, representing 16.79% of the issued and outstanding common shares of Estrella on an undiluted basis and after giving effect to the exercise of the Warrants.

Callinan has acquired the Units for investment purposes and may increase or decrease its ownership interest in Estrella depending on, among other factors, market conditions. Callinan has sole ownership and control of the Shares, and does not have any direct or indirect interest in any other securities of Estrella. Callinan has no intention at this time to acquire ownership of or control over additional securities of Estrella.  An early warning report, as required under National Instrument 62-103, will be filed by the Company on Estrella's SEDAR profile at www.sedar.com.

On Behalf of the Board of Directors,

Roland Butler

Roland Butler, CEO

About Estrella Gold Corporation

Estrella Gold Corporation is a "Prospect Generator" dedicated to making new gold discoveries in Peru. Estrella currently holds three properties in venture agreements where the venture partner is funding all programs. Estrella has established joint ventures with Cliffs Natural Resources Exploration Inc. on Yanac (pending), with Esperanza Resources on Pucarana and with Lara Exploration on Isy. Estrella has 41.6 million shares issued and outstanding on the TSX Venture Exchange (TSX-V: EST).

About Callinan Royalties

Callinan Royalties is a Canadian company that creates and acquires mineral royalties.  The company uses its royalty income to provide alternative financing options to mineral exploration and development companies with attractive projects.  Callinan's strategy is to create shareholder value over the long term by generating a portfolio of profitable mineral royalties.

The Corporation currently has two producing royalties. Callinan holds a 6⅔% net profits interest royalty and a CAD $0.25 per ton production royalty on lands that include the 777 mine and 777 North mine owned by Hudbay Minerals Inc. located in Flin Flon, Manitoba, Canada.  Callinan also holds the 777 Deeps (War Baby) property and an associated royalty option on the property, which is located adjacent to the 777 mine.

Callinan is a dividend paying Tier 1 company listed on the TSX Venture Exchange under the symbol CAA.  The Corporation has a strong financial position with no debt, approximately $24 million in cash and approximately 49.2 million shares outstanding.

 Cautionary Statement on Forward-Looking Information

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.  Certain of the information presented in this News Release may constitute "forward-looking statements" or "forward-looking information" within the meaning of Canadian securities legislation (together referred to as "forward-looking statements"). The forward-looking statements are subject to risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including any delays in the receipt of consents or approvals. Although Callinan Royalties has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this News Release and in any document referred to in this News Release. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and Callinan Royalties undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

SOURCE: Callinan Royalties Corporation

please visit www.callinan.com or contact: Roland Butler, CEO, Callinan Royalties Corporation, [phone], [email protected]; Tamara Edwards, CFO, Callinan Royalties Corporation, [phone], [email protected]; Corporate Office: 770 - 475 West Georgia Street, Vancouver, BC, Canada, V6B 4M9