Callinan Royalties has entered into a definitive agreement with Hudson Bay Mining and Smelting Company which marks the end to protracted litigation which Callinan initiated in early 2007.

The Settlement Agreement was structured to achieve four objectives including evolution of the 1988 six and two thirds percent net profits interest royalty to a more attractive four percent net smelter return royalty which reduces the areas of possible disagreement between the two parties over permitted deductions, establishment of a new three percent net smelter return on 31 square kilometers of surrounding Hudbay exploration ground which broadens Callinan’s area of exposure to prospective exploration Hudbay may pursue, allows for Hudbay to explore Callinan’s War Baby Claim One also known as Triple Seven Deeps which requires access from the existing Triple Seven mine and significant funding to properly explore and recognition of the need to settle ongoing litigation and for a co-operative and enduring relationship with Hudbay.