VANCOUVER, BRITISH COLUMBIA has today received an interim payment of $2,36,8127 from Hudbay Minerals Inc. representing 75% of Hudbay's estimate of 6 2/3% of net profits from Hudbay's 777 Mine in Flin Flon, Manitoba for the quarter ended December 31, 2007. Today's payment is the first time that Hudbay's quarterly payment represents Callinan's 6 2/3% Net Profits Interest in the 777 Mine for a full three month period.

The net profit payment is derived from an agreement made between Callinan and Hudbay dated January 1, 1988. Under the agreement, Hudbay was entitled to recover all its capital, operating and other costs incurred on the 777 Mine (formerly, the Callinan Mine) plus interest before Callinan was entitled to receive any net profits. The remaining 25% of the quarterly payment will be based on actual net profits as defined in the agreement and is payable not more than 130 business days following the completion of Hubay's fiscal year. All future payments are due 30 business days following the end of each fiscal quarter.

Mike Muzylowski, President of Callinan, stated, "We are pleased to finally be sharing in Hudbay's profitable operations at the 777 Mine which we sold to Hudbay's predecessor in 1988. The future quarterly revenues will enable Callinan to continue extensive exploration programs on its numerous advanced poly-metallic exploration properties in British Columbia, Manitoba and Saskatchewan without further dilution to the shareholders."

Mike Muzylowski, President and CEO

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the completion of private placements and future expenditures. 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 ability to complete contemplated private placements and the timing and amount of expenditures. Callinan does not assume the obligation to update any forward-looking statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contacts: Callinan Mines Limited Braden Maccke (604) 605-0885 (604) 605-0886 (FAX) Email: investors@callinan.com Website: www.callinan.com