Callinan's $5.4 Million Convertible Debenture With Gold Royalties Corporation is Fully Convertible Given Gold Royalties Receives Disinterested Shareholder Approval to the Creation of a New Control Person

TSXV: CAA

VANCOUVER, Aug. 14, 2013 /CNW/ - Callinan Royalties Corp. ("Callinan") (TSXV:CAA) Further to Callinan's acquisition on July 30, 2012 of a $5.4 million principal amount convertible debenture (the "Convertible Debenture") from Gold Royalties Corp. ("Gold Royalties") as disclosed in Callinan's news release of July 31, 2012, Callinan announces the Convertible Debenture is fully convertible under its terms effective August 13, 2013, given that disinterested shareholders of Gold Royalties approved the creation of a new control person of Gold Royalties which Callinan would become upon full conversion thereof.

On full conversion of the Convertible Debenture into units in accordance with its terms, Callinan would beneficially own 6,750,000 common shares and 6,750,000 warrants (the "Warrants") exercisable to purchase 6,750,000 further common shares of Gold Royalties, representing approximately 23.64% of the then issued and outstanding common shares of Gold Royalties (the "Shares"), on an undiluted basis and without giving effect to the exercise of the Warrants or the conversion of any interest payable to Callinan and 38.24% of the issued and outstanding Shares of Gold Royalties on a partially diluted basis, giving effect to the exercise of the Warrants but without giving effect to the conversion of any interest.

Callinan purchased the Convertible Debenture for investment purposes and it continues to monitor the business prospects, financial condition and potential capital requirement of Gold Royalties. Depending on its evaluation of these and other factors, Callinan may from time to time in the future increase or decrease its ownership, control or direction over the Shares or other securities of Gold Royalties through market transactions, private placement, subscriptions from treasury or otherwise in accordance with the terms of the Convertible Debenture and TSX Venture Exchange policies. Callinan has no present intention to change its holdings of securities of Gold Royalties.

On Behalf of the Board of Directors,

Roland Butler

Roland Butler, CEO

About Callinan

Callinan Royalties is a Canadian company that creates and acquires mineral royalties. The company uses its royalty income to provide alternative financing options to mineral exploration and development companies with attractive projects. Callinan's strategy is to create shareholder value over the long term by generating a portfolio of profitable mineral royalties.

The Corporation currently has two producing royalties. Callinan holds a 6⅔% net profits interest royalty and a $0.25 per ton production royalty on lands that include the 777 Mine and 777 North Mine owned by HudBay Minerals Inc. located in Flin Flon, Manitoba, Canada. Callinan also holds the 777 Deeps (War Baby) property and an associated royalty option on the property, which is located adjacent to the 777 Mine.

Callinan is a dividend paying Tier 1 company listed on the TSX Venture Exchange under the symbol CAA. The Corporation has a strong financial position with no debt, approximately $25 million in cash and approximately 49.1 million shares outstanding.

Cautionary Statement on Forward-Looking Information

Neither the 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. Certain of the information presented in this News Release may constitute "forward-looking statements" or "forward-looking information" within the meaning of Canadian securities legislation (together referred to as "forward-looking statements"). The forward-looking statements are subject to risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including any delays in the receipt of consents or approvals. Although Callinan Royalties has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this News Release and in any document referred to in this News Release. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and Callinan Royalties undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

SOURCE Callinan Royalties Corp.