CAA

VANCOUVER, Aug. 25 /PRNewswire-FirstCall/ - Callinan Mines is pleased to announce the intersection of gold and silver bearing mineralization on their Coles Creek property in Northern British Columbia, south of Houston. Assays of samples from diamond drill hole COLE 28 have confirmed an intersection of 21.25 meters of core length grading 3.368 g/mt gold, 15.33 g/mt silver, 2.04% zinc and 0.15% lead. The mineralized zone occurs from 268.75 meters to 288.60 meters in a volcanoclastic breccia mineralized with sphalerite, argentite and galena. Another 11.55 meter zone, also in DDH COLE 28 occurring from 181.40 meters to 194.00 meters returned samples measuring 0.146 g/mt gold, 68.87 g/mt silver, 2.00% zinc and 1.22% lead.

The company is pleasantly surprised by the elevated gold values, and is optimistic for the potential of further gold mineralization along the same structure. DDH COLE 28 was collared 162 meters away from previously reported COLE 18, which returned 141 meters of 20.5 g/mt silver and 0.32% zinc, including 4.7 meters of 200 g/mt silver and 1.09% zinc. The company added a second drill to the project in early August and both drills will continue drill testing further along the mineralized structure for as long as weather conditions permit.

"These assay results represent great progress at Coles Creek," Callinan President and CEO Mike Muzylowski said today. "While there is still much work to be done to determine the full extent of the mineralization, I'm optimistic that 2010 will turn out to be a great year for Callinan and for the Coles Creek Project. We hope to be able to continue drilling well into the fall season."

Callinan Mines maintained a QA/QC program at all stages of exploration. Sample recovery was calculated, measured and observed at a company facility on site at Coles Creek before being cut at the same facility. Samples were broken in half, one half being kept for storage and the other half placed in pre-labeled plastic bags, tagged with the sample number and recorded in the log. Samples were then shipped to Acme Analytical Laboratories in Vancouver, BC, where they were crushed, split, pulverized and sieved into approximately 30 g samples at 200 mesh. Samples were then assayed by Aqua Regia digestion ICP-ES analysis, and assayed for silver and gold by fire assay. The lab employs internal quality control by assaying pulp duplicates and inserting quality control standards of predetermined values and a blank sample.

On behalf of the board of directors,

"Mike Muzylowski"

Mike Muzylowski

All of Callinan's exploration programs are conducted under the direction of Pat Deveaux, P.Geo, a qualified person as defined by national instrument 43-101, who has reviewed and approved the contents 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 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.

SOURCE Callinan Mines Ltd.