Calico continues to drill significant lengths of high grade gold at Grassy Mountain including 38.1m (125 feet) of 8.77 g/t (0.256 opt)

VANCOUVER, Dec. 15, 2011 /PRNewswire/ - Calico Resources Corp. (TSXV: CKB) (OTCQX: CVXHF) (the "Company" or "Calico") is pleased to announce final results of the next five (5) sequential drill holes, CAL-003 to CAL-007, from the drilling campaign at the Grassy Mountain Project completed on October 30, 2011.  This season's drill program consisted of step-out and in-fill drilling and was designed to enhance and expand the boundaries of the higher grade portion of the resource.  Holes CAL-004 through CAL-007 each contain significant high grade gold intercepts and are surrounded by substantial lengths of moderate grade material that further enhance the economic viability of the Grassy Mountain system.  The full program consisted of twelve drill holes totaling 3,115m (10,216 ft.), the first two drill holes were previously reported on November 15, 2011. The remaining five holes will be reported after final assays are received.  See Table 1 below for current results.

Highlights:

• CAL-004R, a -70 degree step-out hole (45.7m / 150ft.) cut 38.1m (125 ft.) of mineralization averaging 8.77 g/t (0.256 opt) Au including 12.2m (40 ft.) averaging 15.86 g/t (0.463), extends mineralization to the south on section 2850NW.
• CAL-005R, a -65 degree fill-in hole, covers a 60.9m (200 ft.) gap in drilling by intersecting 60.9m (200 ft.)  averaging 4.83 g/t (0.141) opt Au including 19.8m (65 ft.) averaging 11.47g/t (0.335 opt) Au, extends mineralization vertically and to the north on section 3050NW.
• CAL-006R, a -65 degree step-out hole (30.5m / 100 ft.) on section 3150N, intersected 30.5m (100 ft.) averaging 5.79 g/t (0.169 opt) Au including 16.8m (55 ft.) averaging 9.35 g/t (0.273 opt), extends mineralization to the south.
• CAL-007R, a -70 degree fill-in hole, covering a 60.9m (200 ft.) gap in the drilling, intersected 65.5m (215 ft.) of mineralization averaging 4.62 g/t (0.135 opt) Au including 18.3m (60 ft.) averaging 8.84 g/t (0.258 opt) Au, confirms and extends mineralization to the south on section 3100NW.  The total mineralized gold intercept is 166.1m (545 ft.) averaging 2.57m (0.075 opt) Au.

It is not possible at this time to determine true width of the higher grade intercepts.  All holes were angle holes, and were drilled normal to the trend of mineralization; however they did not penetrate full width of mineralization due to the geometry of the deposit. A Drill Hole Plan Map and Sections 2850NW, 3050NW, 3100NW 3150NW and 3400NW depicting the locations of CAL-003 through CAL-007 are posted to the Company's website along with a Table detailing the "on section" neighboring holes results at www.calicoresources.com.

Vance Thornsberry VP of Exploration states "All holes accomplished their targeted objective by intersecting the high-grade portion of the resource as designed.   All holes drilled this season appear to have encountered the correct lithology, alteration and structure consistent with the historic drilling.  The remaining five (5) drill holes will be announced as appropriate when the final assays are received."

About Calico Resources Corp.
Calico's strategy is to create shareholder value by acquiring projects that give the Company a "pipeline" of opportunities ranging from properties with near term production potential and advanced stage exploration projects with significant exploration upside.  The Company is actively exploring its Grassy Mountain Project which contains NI 43- 101 compliant Indicated resources 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. A copy of the NI 43-101 report dated June 6, 2011 is posted on SEDAR and Calico's website www.calicoresources.com.

Vance Thornsberry, Calico's Vice President of Exploration, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this release. He has verified the drill results and other data disclosed in this news release, including sampling, analytical and test data. Field work has been conducted under his supervision. The Calico sampling and analysis program is an industry standard QA/QC program that includes the insertion of certified standards, duplicates and blank material into the assay stream. Documented chain of custody follows the core and RC samples from the drill rig to a secure field office, to sampling and logging, to the shipper and to the laboratory.   Samples are given a unique identification number and sample batches are number sealed.  Samples were transported by Federal Express Freight to ALS Chemex, an ISO9001:2008; and ISO/IEC17025:2005 certified assay lab in Reno, Nevada and Vancouver, British Columbia for analysis. The samples were analyzed for gold and silver using a standard 50g fire assay Gravimetric procedure.

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.

SOURCE Calico Resources Corporation