primary business is mineral exploration

Royalty interest in two producing mines in Flin Flon, Manitoba

Message: Callinan sets Record and Meeting Dates for Spin-Out Transaction


VANCOUVER, March 25 /CNW/ -Callinan Mines Limited (TSXV: CAA) (OTCBB:
CCNMF) announces that the Board of Directors has set the date for the
special meeting (the "Meeting") of Callinan shareholders to consider
the spin-out transaction (the "Transaction") previously announced on
October 25, 2010. The Board has set June 7, 2011 as the date for the
Meeting and April 28, 2011 as the record date for the Meeting. A
complete description of the Transaction will be set forth in a
management information circular to be sent to Callinan's shareholders
in connection with the Meeting.

The Transaction is intended to provide Callinan shareholders with the
opportunity to continue to participate in both aspects of Callinan's
present holdings. Pursuant to the Transaction, Callinan's exploration
assets, including Callinan's interest in the Coles Creek polymetallic
project in British Columbia, and the Gossan Hill gold and silver
Project in Manitoba, will be transferred to a new corporation
("Newco"). Following the implementation of the Transaction, which will
be accomplished through a plan of arrangement, the shareholders will
hold shares in two corporations, existing Callinan and Newco. Existing
Callinan shareholders will receive the same percentage interest in
Newco as they presently hold in Callinan. Callinan will continue to
hold a 6⅔% Net Profits Interest royalty and a $0.25 per ton royalty in
the 777 Mine at Flin Flon, Manitoba, Canada, which produces copper,
gold, zinc and silver and is operated by HudBay Minerals Inc., as well
as the War Baby mineral property.

The implementation of the Transaction is subject to, among other things,
further Board and shareholder approval of the final structure and terms
and the arrangement agreement to be entered into with Newco. The
Transaction is also subject to Court approval and other regulatory
approvals, including TSX Venture Exchange ("Exchange") acceptance of
the Transaction and the continued listing of Callinan common shares on
the Exchange and conditional listing approval of Newco shares. No
application for listing has been made and there is no assurance that
approval will be granted.

On Behalf of the Board of Directors,

Mike Muzylowski

Mike Muzylowski

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 include, but are not limited to,
statements with respect to the Transaction, the expected benefits of
the Transaction, the completion of the Transaction and the receipt of
shareholder and regulatory approvals for the Transaction. 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 and assumptions
include, among others, the effects of general economic conditions, the
price of gold, silver, copper and other metals, changing foreign
exchange rates and actions by government authorities, uncertainties
associated with legal proceedings and negotiations and misjudgments in
the course of preparing forward-looking information. In addition,
there are known and unknown risk factors which could cause Callinan's
actual results, performance or achievements to differ materially from
any future results, performance or achievements expressed or implied by
the forward-looking statements. Known risk factors include risks
associated with the ability obtain any necessary approvals, waivers,
consents and other requirements necessary or desirable to permit or
facilitate the Transaction, the risk that any conditions of the
Transaction may not be satisfied, risks associated with project
development; the need for additional financing; operational risks
associated with mining and mineral processing; fluctuations in metal
prices; title matters; environmental liability claims and insurance;
reliance on key personnel; the potential for conflicts of interest
among certain officers, directors or promoters of Callinan with certain
other projects; currency fluctuations; competition; dilution; the
volatility of Callinan's common share price and volume; tax
consequences to U.S. investors; and other risks and uncertainties.
Forward-looking statements are made based on management's beliefs,
estimates and opinions on the date that statements are made and
Callinan undertakes no obligation to update forward-looking statements
if these beliefs, estimates and opinions or other circumstances should
change, except as required by law.

For further information:

Braden Maccke, 736 Granville Street, Suite 1100, Vancouver, BC, V6Z 1G3, Telephone: (604) 605-0885, Toll-Free: 1-877-228-5210, Fax: (604) 605-0886, Email: [email protected], Website:">

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