Calico Announces Proposed Re-Pricing of Warrants

VANCOUVER, May 22, 2013 /PRNewswire/ - Calico Resources Corp. (TSX-V: CKB, OTCQX: CVXHF) ("Calico" or "the Company") announces that it proposes to amend the exercise prices of the following share purchase warrants, by reducing the exercise price to $0.12 per share:

• Warrants to purchase up to 1,312,500 common shares , issued in connection with a non-brokered private placement completed June 8, 2011, with an exercise price of $0.60 per share, exercisable until June 8, 2013;
  
  
• Warrants to purchase up to 1,500,000 common shares issued in connection with a non-brokered private placement completed September 26, 2011, with an exercise price of $0.60 per share, exercisable until September 26, 2013 ;
  
  
• Warrants to purchase up to 2,827,500 common shares, issued in connection with a brokered private placement completed April 26, 2012, with an exercise price of $0.50 per share, exercisable until April 25, 2014; and
  
  
• Warrants to purchase up to 1,660,500 common shares, issued in connection with a non-brokered private placement completed October 12, 2012, with an exercise price of $0.40 per share, exercisable until October 12, 2014.

Grassy Mountain Gold Project Production Permitting Status

Calico intends to use the proceeds from the exercise of the share purchase warrants to fund, in part, the current production permitting process for the Grassy Mountain high grade gold project.

Calico's Grassy Mountain Gold Project is located in south east Oregon, USA, approximately 70 miles west of Boise, Idaho and 22 miles south of Vale, Oregon.

Calico commenced the consolidated State/Federal production permitting application process at the beginning of 2012.  On February 8, 2012 Calico filed its Notice of Intent with the Oregon Department of Geology and Mineral Industries ("DOGAMI").  On June 12, 2012 DOGAMI confirmed in writing the acceptance for filing of the Notice of Intent.  Calico then prepared various study methodologies and submitted those methodologies for approval and on March 8, 2013 DOGAMI approved the baseline methodologies and related study plan of the Company.  Since then the company has been proceeding with its production permit process.

Calico is very pleased with the very welcoming and professional reception of DOGAMI and with the various other officials of the Government of Oregon.  Calico fully expects that the permitting process will continue in the normal course and expects the State of Oregon to grant a permit for placing the high grade underground Grassy Mountain Gold Project into full production.

Mr. Buck Morrow stated:

We expect that the permitting process will lead Calico to be first gold mining company in over 20 years to be issued a permit for an underground mine in Oregon.  We are very convinced that our strategy of pursuing the approval of a high grade underground mine operation rather than seeking the approval of a larger low grade open pit mine operation is a key factor in Calico receiving such a warm reception from both the Oregon public and the Government of Oregon.  Further, we see the prospects of the Grassy Mountain Project assisting the economy of an area of Oregon that needs such economic assistance as being a further factor in the successful permitting process to date.

The application to reduce the exercise price of the warrants is subject to the Exchange's acceptance.  The Company makes no assurances that the required acceptance for the re-pricing of the warrants will be granted.

CALICO RESOURCES CORP.

Per: Buck Morrow,
President & 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.

Cautionary Statement

This document contains "forward-looking statements" within the meaning of applicable Canadian securities regulations.  All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements.  Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company's documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound.

SOURCE Calico Resources Corporation

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