Callinan receives shareholder approval and final court order for Arrangement with Callinex

VANCOUVER, June 9, 2011 /PRNewswire/ - Callinan Mines Limited ("Callinan" or the Company")(CAA:TSX.V), is pleased to announce that the Supreme Court of British Columbia has issued a final order approving the plan of arrangement (the "Arrangement") involving Callinan and Callinex Mines Inc. ("Callinex").  Receipt of the final order follows Callinan's special meeting of its shareholders (held on June 7, 2011) whereby the special resolution authorizing the Arrangement was approved by 99.99% of the votes cast by Callinan shareholders present in person or represented by proxy at the Callinan special meeting. Further, the TSX.V has conditionally accepted for filing the listing application for Callinex.

The Arrangement provides for the spin-out of Callinan's exploration assets to Callinex.  Following the closing of the Arrangement, Callinex will hold all of Callinan's exploration assets, including Callinan's interest in the Coles Creek project located in British Columbia and the Gossan Hill gold and silver project located in Manitoba, and will have approximately $8 million in cash.  Callinan will continue to hold a 6⅔% net profits interest royalty and a $0.25 per ton royalty in the 777 Mine located in Flin Flon, Manitoba.  Callinan will also retain its interest in the War Baby mineral claim.

Callinan's President and CEO, Mike Muzylowski, commented "We are looking forward to moving on as a royalty company under the direction of Roland Butler. Meanwhile, the spirit of discovery that founded Callinan will live on in Callinex as we explore a vast, high potential property portfolio. We hope that this action will provide investors and shareholders with additional investment flexibility, and ultimately a better expression of the value of the two companies."

Pursuant to the Arrangement, the Company's name will be changed to "Callinan Royalties Corporation".  The Arrangement will involve, among other things, the distribution of common shares of Callinex (the "Callinex Shares") to shareholders of Callinan as at the effective date of the Arrangement such that each Callinan shareholder will hold (i) one common share of Callinan for each common share of Callinan held on the effective date of the Arrangement; and (ii) one Callinex Share for every 4.5 common shares of Callinan held on the effective date of the Arrangement.

Completion of the Arrangement and the listing and posting to trade of the Callinex Shares is subject to customary regulatory approvals and is expected to occur within the next few weeks. Callinan will advise in a further news release as to the effective date of the Arrangement and the expected date of the listing and posting to trade of the Callinex Shares. Further details regarding the Arrangement are set out in Callinan's Notice of Special Meeting and Management Proxy Circular dated May 7, 2011, which is available at www.sedar.com.

On behalf of the Board of Directors

Mike Muzylowski

Mike Muzylowski
President 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.

Some statements in this news release contain forward-looking information.  These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing and amount of expenditures. Callinan does not assume the obligation to update any forward-looking statement, except as required by applicable law.

SOURCE Callinan Mines Ltd.

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