Callinex Mines Inc. announced that the Company has commenced immediate step-out drilling to define the new high-grade copper, zinc, gold and silver Descendent discovery at the Company's 100% owned Pine Bay Project (the "Project"), located near Flin Flon, MB (See news release dated September 12, 2023) (Pine Bay Project Plan View). The discovery hole, DSC-111, intersected four separate volcanogenic massive sulphide lenses ("VMS") with significant base and precious metal values within a total core width of 67.7m. The most significant section returned 7.14m grading 1.70% copper equivalent ("CuEq") containing 3.34% Zn, 0.29 g/t Au, 14.38 g/t Ag, and 0.11% Cu with additional massive sulphides intersected including a 10.57m grading 1.36% CuEq containing 1.47% Zn, 0.58 g/t Au, 18.3 g/t Ag and 0.43% Cu.

A borehole pulse electromagnetic survey completed on DSC-111 identified a large geophysical target associated with the intersections that projects along strike to the northeast for 340m and at depth for 840m (Descendent Discovery Long Section). Step-out drill hole DSC-112 is testing the Descendent 200m vertically below discovery hole DSC-111. The intersection in DSC-111 is the deepest result to date associated with the Cabin Horizon and is located 350 meters below PBM-024 which intersected 2.58m of 0.53% Zn, 0.92% Au, 34.60 g/t Ag, and 1.64% Cu.

The Descendent is situated 550m from the Pine Bay deposit, 1.4km from the Rainbow deposit and 2.9km from the Alchemist deposit, which are all located within a mineral lease. The anticipated vertical extent being tested between PBM-024 and DSC-112 is 550m. By comparison the Rainbow deposit has been delineated in the recently announced maiden 43-101 resource estimate to a vertical extent of 865m and remains open at depth.

Once drill hole DSC-112 is completed, it will then be used as a parent drill hole to set a number of wedges off it to test up plunge between the initial intersection and DSC-111. Additionally, discovery hole DSC-111 will also be used to set a number of wedges to test up plunge to the PBM-024 intersection. The Descendent was intersected in drill hole DSC-111 at a down-hole depth of 1,318m and remains open in all directions.

Many of the largest deposits within the Flin Flon Greenstone Belt have been discovered at depth. The abundance of zinc, gold and silver in DSC-111 indicates that the hole may have intersected the edge of the VMS system similar to what occurs at the Rainbow deposit. Additionally, the significant width of the massive sulphide intervals suggests that the system is long-lived and robust.

The four VMS lenses are separated by dykes and sills, which is typical in many VMS systems, and allows for the potential for one large massive sulphide body. This discovery hole is located within the Baker Patton Felsic Complex, one of the largest and most highly altered accumulations of felsic rocks within the Flin Flon Greenstone Belt. A major alteration zone had previously been identified at surface and spans 1,100m by 700m as defined by values of more than 90 using the Hashimoto (Ishikawa et al.) Alteration Index, a quantitative approach to evaluate alteration trends that ranges from 0 to 100.

Since the huge alteration zone seen at surface is structurally overturned, the exploration thesis is that the massive sulphides associated with this mineralizing event would be preserved at depth. Typically, there is a correlation between the size of an alteration zone and the size of the VMS deposit it is associated with. The exploration model for large VMS deposits within the Flin Flon-Snow Lake Greenstone Belt, such as the Lalor and 777 deposits, includes having several smaller deposits in close proximity to a large alteration system within a major felsic volcanic center.

Historic and recent exploration has identified seven VMS deposits, along with the new Descendent discovery, located in close proximity to the huge Baker Patton alteration zone.