/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES/

Trading Symbol: CAA: TSXV

VANCOUVER, July 7 /CNW/ - Callinan Mines Limited ("Callinan") is pleased to announce that it has entered into an option agreement to acquire a 100% interest in two mineral claims known as the Hamell Lake Claims, west of Flin Flon Manitoba. The option ground is part of the same geological complex as the formerly producing Flin Flon and Callinan mines, as well as the currently producing 777 mine. Callinan plans to begin exploration on the ground in 2008.

Callinan will begin the option with a payment of $20,000 and issuance of 15,000 of its common shares to the optionees within five business days (the "Effective Date") from the date of TSX Venture Exchange acceptance. Callinan has the right to earn a 100% interest in the claims by paying the optionees a further $130,000 and issuing an aggregate of 135,000 common shares over 36 months from the Effective Date. The optionees are entitled to receive a 2% net smelter returns royalty interest and Callinan has the option to purchase 50% of the royalty interest at any time by paying the optionees the sum of $1,000,000.

The option agreement is subject to the approval of the TSX Venture Exchange.

On Behalf of the Board of Directors,

Mike Muzylowski

President and CEO

The TSX Venture Exchange has not reviewed and does not accept

responsibility for the adequacy or accuracy of this news release.

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the completion of private placements and 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.