ASX Announcement

UPDATED 1.57Moz MINERAL RESOURCE FOR CAMERON GOLD PROJECT IN CANADA

• The updated total Mineral Resource for the Cameron Gold Project ('the Project') in Ontario, Canada (including the Cameron deposit and the satellite Dubenski and Dogpaw deposits) is:

  • Measured and Indicated - 8.88 Mt grading 2.29 g/t gold for 652,000 ounces

  • Inferred - approximately 14.92Mt grading 1.91 g/t gold for 917,000 ounces

  • Total Measured, Indicated and Inferred - 23.8 Mt grading 2.05 g/t gold for 1.57 million ounces

• The updated Mineral Resource estimate for the Cameron deposit (within the Project, and excluding the satellite Dubenski and Dogpaw deposits) comprises:

  • Measured and Indicated - 7.82Mt grading 2.26g/t gold for 569,000 ounces

  • Inferred - approximately 14.46Mt grading 1.92g/t gold for 894,000 ounces

  • Total Measured, Indicated and Inferred - 22.3 Mt grading 2.04 g/t gold for 1.46 million ounces

• The updated Mineral Resource follows the re-logging of 771 Diamond drill-holes (~102,000m of drilling), assaying of an additional ~30,000 new samples and the construction of a new comprehensive geological model for the Cameron deposit.

• This re-logging and sampling program has successfully achieved its core objective of updating the Mineral Resource for the Cameron deposit, supporting construction of an integrated 3D geological model and further clarifying the controls on mineralisation at the Cameron deposit.

• The updated Mineral Resource estimate for the Cameron deposit has resulted in a 39% increase in ounces of gold and 13% increase in gold grade within the measured category.

Chalice Gold Mines Limited (ASX: CHN: TSX: CXN - 'Chalice' or 'the Company') is pleased to announce an updated Mineral Resource estimate for its 100%-owned Cameron Gold Project in Ontario, Canada. Independent specialist resource and mining consulting group, Optiro Pty Ltd, has completed an updated Mineral Resource for Cameron, the main deposit included within the larger Cameron Gold Project. The Mineral Resource is based on an extensive re-logging program of the existing 771 Diamond drill-holes completed earlier this year, assay results from approximately 30,000 new samples collected from existing core, and the construction of a new geological model.

The updated total Measured, Indicated and Inferred Mineral Resource for the Cameron Gold Project, including the main Cameron deposit and the satellite Dubenski and Dogpaw deposits (which remain unchanged from those previously announced), is summarised below:

Table 1: Consolidated Cameron Gold Project Mineral Resource estimate

1. The independent Mineral Resource estimates and reports for the Cameron deposit were prepared by Optiro Pty Ltd in accordance with the guidelines of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code; 2012), Canadian Institute of Mining and Metallurgy and Petroleum ('CIM') definitions and National Instrument NI43-101.

   
   

2. The independent Dogpaw and Dubenski Mineral Resource estimates were prepared by Datageo Geological Consultants in accordance with the guidelines of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code; 2012) CIM 2014 standards and National Instrument NI43-101. Both deposits are reported to depths which may be deeper than those that might be amenable to open cut mining, but this depth cannot be determined until the completion of additional studies. Both the Cameron and Dogpaw deposits are depleted for material previously mined in a trial exercise.

   
   

3. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. These Mineral Resource estimates include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as mineral reserves. There is also no certainty that these Inferred Mineral Resources will be converted to the Measured and Indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

The updated Mineral Resource represents an important milestone in advancing the Project. As part of the Company's preparation and timing of a new Preliminary Economic Assessment ('PEA'), Chalice will now focus on exploration to add additional potentially economic open-pit ounces in close proximity to the Cameron deposit. Results from an extensive summer exploration program recently completed are currently being compiled and interpreted.

1. Cameron Gold Project Overview

   
   

   Figure 1: Cameron Gold Project Location

   
   

   The Cameron Gold Project is an advanced resource project located in the highly mineralised southern part of western Ontario in Canada, approximately 80km south-east of the town of Kenora (Figure 1). The Project has a number of attractive attributes, including high grades, low political risk in a mature mining jurisdiction with low costs, high gold recoveries by conventional metallurgy, and a large-sized gold project that is well within Chalice's funding and development capability.

   
   

2. Mineral Resources for the Cameron Deposit (excluding Dubenski and Dogpaw)

The updated Mineral Resource estimate follows the re-logging of approximately 102,000m of historical surface and underground Diamond drill core (771 holes) for the Cameron deposit. Approximately 30,000 new samples were also collected from existing core within or immediately adjacent to the known mineralisation, assays for which have been added to the Mineral Resource model.

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The Company has successfully achieved its immediate core objective of updating the Mineral Resource estimate, constructing an updated 3D geological model and further clarifying the controls on mineralisation at the Cameron deposit. As a result of this increased understanding, the geological risks associated with the Mineral Resource model have been reduced, resulting in a more robust Mineral Resource estimate.

The updated Cameron geological model has defined eight zones of continuous mineralisation. The distribution of these zones are shown in Figures 2 and 3 below:

Figure 2: Eight mineralised zones in Cameron deposit. Cross section 50,400mN

Figure 3: Plan view, 790mRL, of Cameron deposit mineralised zones

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The distribution of Measured, Indicated and Inferred Mineral Resources within the Cameron deposit is shown in Figures 4 and 5 below. Of particular importance is the fact that the bulk of the Measured and Indicated mineralisation lies within 250m of surface, and there is little to no overburden.

Figure 4: Plan view of Measured, Indicated and Inferred resource blocks at Cameron deposit

Figure 5: Long section of the Cameron deposit showing the distribution of Measured, Indicated and Inferred resource blocks

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