Calico Extends Gold Mineralization at Grassy Mountain

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Jan 10, 2012, 08:00 ET

VANCOUVER, Jan. 10, 2012 /PRNewswire/ - Calico Resources Corp. (TSX-V: CKB, OTCQX: CVXHF) (the "Company" or "Calico") is pleased to announce results of the last five holes from its 2011 drilling campaign at Grassy Mountain. Holes CAL-008 through 012 were Reverse Circulation (RC) angle holes that successfully accomplished their objective of extending mineralization along the northern margins of the deposit. All five holes intersected thicker than anticipated sections of moderate grade material and contain a higher-grade component, such as CAL-008R which intersected 109.7m (360 feet) averaging 2.51 g/t (0.073 opt) Au and included 15.5m (50 feet) averaging 7.12 g/t (0.208 opt) Au. "The drill results exceeded our expectations. "We are excited by both the extension of mineralization and the potential impact these results will have on our current view of the size of the resource." said Buck Morrow, Chairman.

The 2011 drilling program, consisting of three (3) core holes and nine (9) RC holes totaling 3,113m (10,216 feet), was completed October 30, 2011. Drill holes CAI-001 - CAL-007 have been previously reported and can be viewed on the Company's website at www.calicoresources.com or on SEDAR. A complete summary of the 2011 drilling results is forthcoming.

Table 1 Significant Intercepts CAL-008 - CAL-012


HOLE ID	FROM feet	TO feet	LENGTH feet	Au oz/t	LENGTH meters	Au g/t
CAL008	450	810	360	0.073	109.73	2.51
Includes	(755)	(805)	(50)	(0.208)	(15.24)	(7.12)
CAL009	565	795	230	0.078	70.10	2.66
Includes	(735)	(785)	(50)	(0.152)	(15.24)	(5.21)
CAL010	520	700	180	0.085	54.86	2.92
Includes	(610)	(675)	(65)	(0.141)	(19.81)	(4.82)
CAL011	485	730	245	0.076	74.68	2.62
Includes	(505)	(540)	(35)	(0.120)	(10.67)	(4.12)
Includes	(670)	(720)	(50)	(0.142)	(15.24)	(4.85)
Includes	(690)	(705)	(15)	(0.310)	(4.57)	(10.62)
CAL012	340	600	260	0.055	79.25	1.89
Includes	(435)	(455)	(20)	(0.104)	(6.10)	(3.57)
Includes	(500)	(600)	(100)	(0.071)	(30.48)	(2.44)

A plan map depicting the location of Holes CAL-008 through CAL-012 as well as the previously reported seven holes can be viewed on the Company's website.

Drilling Summary

Hole CAL-008 was a 100 foot step-out hole to the north along Section 3200NW. It intersected a much thicker zone of mineralization than expected, 109.7m (360 feet) averaging2.51 g/t (0.073 opt) Au and included 15.5m (50 feet) averaging 7.12 g/t (0.208 opt) Au. CAL-008 extended mineralization along Section 3200NW and gold mineralization remains open to the Northwest along this section.

Hole CAL-009 was also a step-out hole drilled on what was originally thought to be the northeast fringes of the deposit resulted in extending the mineralization 100-150 feet north along Section 3450NW, intersecting 70.1m (230 feet) averaging 2.66 g/t (0.078 opt) Au including 15.2m (50 feet) averaging 5.21 g/t (0.152 opt) Au. CAL-008 demonstrated that gold mineralization remains open to the Northwest along Section 3450NW.

Holes CAL-010 was drilled on the north side of the deposit between sections to cover a 100x200 ft gap in the previous drilling. Hole CAL-010 extended mineralization 50-100 feet north near Section 3350NW intersecting 54.9m (180 feet) averaging 2.92g/t (0.085 opt) Au including 19.8m (65 feet) averaging 4.82 g/t (0.141 opt) Au. Hole CAL-010 provides evidence of continuity of mineralization between sections and closes gaps in the previous drilling.

CAL-011 was drilled on the north side of the deposit between sections to cover a 100x200 ft gap in the previous drilling. CAL-011 cut a much thicker zone of mineralization than anticipated near Section 3300NW intersecting 74.7m (245 feet) averaging 2.62 g/t (0.076opt) Au including 10.7m (35 feet) of 4.12 g/t (0.120 opt) Au and 15.2m (50 feet) averaging 4.85 g/t (0.142 opt) Au . This hole provides evidence of continuity of mineralization both between sections and between holes along section.

Hole CAL-012 was drilled on what was initially believed to be the northwest fringe of the deposit in an area of sparse drill coverage. This hole intersected 79.3m (260 feet) of mineralization averaging 1.89 g/t (0.055 opt) Au including 30.5m (100 feet) of 2.44 g/t (0.071 opt) Au and 6.1m (20 feet) of 3.57 g/t (0.104 opt) Au. It extends mineralization 200 feet north along Section 2950NW. Mineralization remains open along strike on Section 2950NW.

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.

To view supporting documents please visit: http://calicoresources.com/projects/sample-project-1/maps

On behalf of the Board,

William S. Wagener
President and 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