Calico Withdraws Application to Re-price Warrants

VANCOUVER, Oct. 16, 2013 /PRNewswire/ - Calico Resources Corp. (TSX-V: CKB) (OTCQX: CVXHF) ("Calico" or "the Company") announces that it has received funds from the exercise of 1,170,500 of the 1,500,000 share purchase warrants issued in its private placement which closed September 26, 2011, representing 78 percent of the warrants being exercised.  The Company had received TSX Venture Exchange acceptance to amending the exercise price of these warrants from $0.60 to $0.12 per warrant.  The Company has decided not to re-price future warrants and will seek alternative financing to continue the permitting process at the Grassy Mountain Project.

"I would like to thank all those that exercised their warrants for trusting in the Company management and the future of the Grassy Mountain Project.  The continued support by our investors is important to the success of the Company and the permitting process." stated Buck Morrow, Chairman of Calico.

In its news release of May 22, 2013, Calico announced it proposed to amend the exercise prices of an additional two series of share purchase warrants to $0.12 per share: The Company has now decided not to proceed with the applications to re-price these warrants.

• 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.

ON BEHALF OF THE BOARD

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