Last updated on April 19, 2014 at 13:20 EDT

Exercise of Grassy Mountain Option

February 6, 2013

VANCOUVER, Feb. 6, 2013 /PRNewswire/ – Calico Resources Corp. (TSX-V: CKB) (the
“Company” or “Calico”) is very pleased to announce that today it
entered into a formal agreement to amend its Grassy Mountain Option and
at the same time Calico exercised in full its option to acquire the
Grassy Mountain Gold Project in south east Oregon.  Calico now owns a
100% interest in the Grassy Mountain Project, subject to applicable

Buck Morrow, the President and CEO of Calico stated: “The exercise of
the option is a major milestone for Calico.  The Company has managed to
substantially reduce the risk in the project and has demonstrated to
the permitting agencies and the market that Calico is the 100% owner of
the project both now and in the future.  Our shareholders should
recognize the advantages Calico now has, not only by controlling all
aspects of the ownership of the Grassy Mountain Project acquired from
Seabridge, but also by holding the substantial property position Calico
acquired by staking royalty free claims contiguous to the Grassy
Mountain Project.

In exercising the Grassy Mountain Option, Calico issued to Seabridge
Gold Inc. 6,433,000 common shares and 4,567,000 special warrants.  Each
special warrant is exercisable for no additional consideration to
acquire one further common share.  Seabridge may only exercise from
time to time that number of Special Warrants such that Seabridge will
not at any time own 20% or more of the issued shares in Calico. In the
event that there are special warrants unexercised as of the date of the
next annual shareholder meeting of Calico (expected to be sometime in
December 2013), then Calico is required to ask its shareholders at such
shareholder meeting for approval to allow all of the remaining
unexercised special warrants to be immediately exercised.

All shares and special warrants issued to Seabridge were subject to a
four month hold period in accordance with applicable Canadian
securities laws and were impressed with a legend in compliance with US
securities laws.

Seabridge retains a 10% net profits interest (the “NPI”) in the Grassy
Mountain Property.  Within the 30 days following Calico’s receipt of a
feasibility study on the Grassy Mountain Project, Seabridge has the
right to elect to cause Calico to purchase the NPI for $10,000,000.  If
Seabridge makes such election, then Calico will be required to make
such payment within the 120 days following the later of: (a) the date
of receipt of all required permits and the complete bonding of the
proposed mine on the Property and (b) the completion of a feasibility

As part of the exercise of the Grassy Mountain Option, Calico
successfully negotiated various amendments to the Grassy Mountain
Option, including: (a) the ability to immediately exercise the Grassy
Mountain Option (now completed); (b) in consideration of the early
exercise of the option, a reduction of securities to be issued to
Seabridge of 1,000,000 shares; and (c) a clarification as to the
required payment date for the purchase of the NPI, if so elected by

About Grassy Mountain

Permitting Status:
In 2012 Calico commenced the permitting process for an underground mine
and mill facility at Grassy Mountain.  The State of Oregon has accepted
Calico’s Notice of Intent to develop the project, held several Public
Hearings and deemed the Company’s Draft Environmental Baseline Study
Work Plans sufficient for official review.  Calico is continuing with
the permitting process with enthusiasm and confidence.

Preliminary Economic Assessment Report Status:
A Preliminary Economic Assessment is currently being prepared under NI
43-101 standards.  Calico expects the PEA to be completed by the end of
February 2013.  Upon the receipt of the PEA Calico will be issuing a
news release and SEDAR filing the PEA.

Qualified Person
Michael F. McGinnis, CPG 10914, Calico Resources Project Manager, is the
Company’s designated Qualified Person for this news release within the
meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101″) and has reviewed and validated that the information
contained in the release accurate.

On behalf of the Board,

Arden (Buck) Morrow
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

Source: PR Newswire