Calico Receives Extension of Time to Construct Grassy Mountain Water System

VANCOUVER, March 11, 2013 /PRNewswire/ - Calico Resources Corp. (TSX-V: CKB, OTCQX: CVXHF) (the "Company" or "Calico") reports that it has received a 16 year extension of time to construct a water system and apply water to beneficial use at its 100% owned Grassy Mountain Project.

On February 8, 2012, Calico Resources USA Corp. filed an application for extension of time to complete construction of a water system and to apply water to beneficial use under Oregon Water Resources Department ("OWRD") Permit # G-10994.  The Permit is for water use for mining purposes at the Grassy Mountain site. The public protest period closed on July 27, 2012, and no protests were filed. On December 26, 2012, OWRD issued a final order approving the requested extension of time, which was subject to judicial review through February 25, 2013. No petitions for judicial review were filed.

Buck Morrow CEO of Calico stated "The extension of time to complete the water system is another milestone met by Calico.  OWRD's approval of the extension and no adverse filings for judicial review offers further evidence that Oregon is a favorable jurisdiction to work in." The new completion date for construction of the water system and application of water to beneficial use is October 1, 2028. During that time frame, Calico is authorized to use up to 2.0 cubic feet per second (898 gallons per minute) of groundwater year-round for mining and industrial uses. As a condition of the extension, Calico will submit progress reports to OWRD in 2017, 2022 and 2027 to provide evidence of diligence towards completion of the project, and the reports will be subject to public comment.

On behalf of the Board,

Arden B. Morrow
Chairman 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."

SOURCE Calico Resources Corporation