Calico Acquires Option for Grassy Mountain Project

VANCOUVER, April 18, 2011 /PRNewswire-FirstCall/ -- Calico Resources Corp. (formerly Cobre Exploration Corp.) (TSX-V: CKB) (the "Company" or "Calico") announces that it has signed the definitive option agreement for the acquisition of a 100% interest (subject to certain royalties) in the Grassy Mountain Project (the "Project") from Seabridge Gold Inc. ("Seabridge").

A summary of the Grassy Mountain Project, pending exploration plans and terms of the option agreement follow.

Mike Lechner, P. Geo., President, of Resource Modeling Inc., and a Qualified Person under National Instrument 43-101 ("NI 43-101") had prepared for Seabridge a NI 43-101 Technical Report dated April 27, 2007. That Technical Report estimated open pit Indicated resources for the Project of 18,657,000 tonnes containing 924,000 ounces Au averaging 1.54 g/t (0.045 opt) at a 0.55 g/t (0.016 opt) cutoff and Inferred resources of 1,722,000 tonnes containing 61,000 ounces Au averaging 1.10 g/t (0.032 opt) at a 0.55 g/t (0.016 opt) cut-off. That 2007 NI 43-101 resource was entirely on Patented Lode Mining Claims within the larger approximately 3,800 acre project claim package located in Malheur County, Oregon, approximately 70 miles west of Boise, Idaho and 22 miles south of Vale, Oregon.

In addition to the main discovery zone, the project contains 17 exploration targets within the claim block identified through previous drill testing, soil sampling, mapping and rock chip sampling. The Project has had extensive exploration conducted on it, with over 400 holes drilled totaling about 76,000 meters of RC and diamond drill holes - 228 of which were drilled in the main discovery zone totaling about 56,500 meters.

Calico retained Mr. Lechner to prepare a current NI 43-101 Technical Report. Mr. Lechner has been working on the Technical Report and expects that he will have that current Technical Report completed shortly. Upon the completion of that Technical Report the Company will be issuing a news release and SEDAR filing that Technical Report.

Calico is planning a drilling/exploration program on the Project commencing in mid-summer of this year focusing on a potential high-grade feeder zone identified by previous operators. The program will concentrate on infill and step-out drilling in this high-grade area. Mapping and prioritizing of the 17 identified additional targets located on the property will also be undertaken, followed by exploration drilling.

In order to exercise its option and acquire 100% of the Project, subject to certain royalties, Calico will issue 2,000,000 shares following execution of a definitive option agreement and receipt of TSX Venture Exchange approval, 4,000,000 shares on the first anniversary of the execution of the option agreement and 8,000,000 shares when the Project has received the permits and bonding necessary for the construction and operation of a mine. All shares to be issued under the Option Agreement will be subject to a four month hold period. In addition, after the delivery of a NI 43-101 compliant Feasibility Study on the Project, Seabridge, has the right to elect to receive either an ongoing 10% Net Profits Interest royalty or a one-time payment of CDN$10 million after receipt of the permits and bonding necessary for the construction and operation of a mine.

The Option Agreement is subject to Exchange approval.

Calico is also pleased to announce a new addition to our team. Pamela White has accepted the position of Corporate Secretary. Pamela White has over 20 years of experience in the TSX and TSX Venture Exchange industry, both as a senior securities legal assistant, as well as general office manager / Corporate Secretary for a number of resource exploration companies listed on the Venture Exchange. Ms. White is currently the Corporate Secretary of three other Venture Exchange listed companies, carrying out all their corporate compliance and regulatory filing requirements.

Calico is committed to operating in a manner consistent with "sustainable development" principles. The Company is executing a plan to deliver on a strategy designed to increase shareholder value and is confident that in so doing, it will benefit the employees, communities and other stakeholders in the areas in which it operates.

Qualified Person

Mike Lechner, P. Geo., is an independent "qualified person" as that term is defined in NI 43-101, and has reviewed and approved the technical disclosure in this news release.

    On behalf of the Board,

    W. S. Wagener

    William S. Wagener
    President & 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.

Cautionary Statement Regarding Forward-looking Information

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, the approval of the TSX-V of the option agreement with Seabridge, exercise of the Company's option under the agreement with Seabridge, the Company's plans for exploration drilling on the Project, the results of Company's exploration activities, statements regarding Calico's business strategy and plans for the Project and other expectations and intentions contained in this press release that are not historical fact. The Company's expectations regarding the option and the Project depend in part upon the Company's ability to obtain all necessary regulatory and other approvals for the option agreement and to conduct operations on the Project and the success of Company's exploration activities, among other things. When used in this press release, the words "plan", "expect", "believe", and similar expressions generally identify forward-looking statements. These statements reflect the Company's current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, the failure of the parties to agree to the terms of a definitive option agreement. In light of the risks and uncertainties surrounding the option, investors should understand that the Company cannot assure investors that the forward-looking statements contained in this press release will be realized.

For further information:

Terri Anne Welyki, [email protected], +1-604-681-6855

SOURCE Calico Resources Corporation