Callinex Adds Second Rig to its Drilling Campaign in the Bathurst Mining District

VANCOUVER, June 19, 2017

The Nash Creek Project is ideally situated approximately 1 km south of Provincial Highway 11, about 100 km by road to Trevali's Caribou Mine and 25 km by road to Glencore's Belledune lead/silver smelter, which has direct railway access to Glencore's Canadian zinc smelting and refining operations. Previous exploration has delineated mineralization over a 1.5km strike length and the project hosts an Indicated mineral resource totaling 712 million pounds of zinc equivalent mineralization and an Inferred mineral resource totaling 88 million pounds of zinc equivalent mineralization (see Table 1).

Following completion of the Nash Creek phase of the drilling campaign, the drill rigs will be mobilized to the nearby Superjack Project to test for high-grade extensions to the A Zone deposit (See Table 1). The two deepest holes drilled by a previous operator at the A Zone deposit, at a vertical depth of approximately 440m, intersected thick intervals of high-grade mineralization (See Figure 3):*

• NP11-54 intersected 10.3m of 8.2% Zn Eq. (4.0% Zn, 1.7% Pb, 0.4% Cu, 53.3 g/t Ag and 0.3 g/t Au) including a higher-grade interval over 6.6m of 10.5% Zn Eq. (5.3% Zn, 2.2% Pb, 0.4% Cu, 69.0 g/t Ag and 0.5 gt/ Au).
• NP11-39 intersected 11.2m of 7.6% Zn Eq. (5.0% Zn, 1.0% Pb, 0.2% Cu, 34.2 g/t Ag and 0.2 g/t Au) including a higher-grade interval over 2.6m of 17.6% Zn Eq. (15.0% Zn, 1.4% Pb, 0.3% Cu, 32.5 g/t Ag)

In addition to testing the A zone at greater depths, one hole will also test a 1,300 metre long by 800 metre wide gravity inversion anomaly that indicates the three known mineralized zones (A, B and C zones) all potentially connect at depth. The Superjack phase of the drilling campaign is anticipated to include 4 to 8 drill holes totaling 2,500m to 4,000m.

*Zinc equivalent grades are based on the following metal prices: zinc US$2,525/t ($1.15/lb), copper US$5,500/t ($2.49/lb), lead US$$2,205/t ($1.00/lb), gold US$1,300 per oz and silver US$18.0 per oz. Metal recoveries of 100% were applied in the metal equivalent calculations. The zinc equivalent calculation is as follows: ZnEq = 100 ((Au Price in (g) x Au Grade) + (Ag Price in (g) x Ag Grade) + (Cu Price*2204.6 x Cu Grade(%)/100) + (Zn Price*2204.6 x Zn Grade(%)/100)+(Pb Price*2204.6 x Pb Grade(%)/100))/Zn Price*2204.6

Jason Levers, PGeo, a qualified person under National Instrument 43-101 and a Staff Geologist for Callinex, has reviewed and approved the technical information in this news release.

Table 1: 2016 Mineral Resource Estimates for New Brunswick Projects