CHALICE MINING LIMITED — Board/Management Information 2011

Nov 20, 2011

ASX:CHN TSX:CXN

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----- Start of picture text ----- ABN 47 116 648 956----- End of picture text -----

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21 November 2011

ASX Announcement

Board of Directors composition and withdrawal of Resolutions

Chalice Gold Mines Limited (ASX:CHN)(TSX:CXN) advises its Directors have been considering the composition of its Board as the Company moves to development of its Zara Gold Project in Eritrea and following execution of the Mining Agreement with the Government of Eritrea.

These considerations have taken account of the need for an appropriate balance between independent and non‐independent directors and general governance practices. As the Company goes forward the Directors consider there is a need to address this balance.

Amongst the resolutions proposed at the Company’s AGM (to be held Tuesday 22 November 2011) were resolutions for the re‐election of Michael Griffiths (previously an executive director) and Juan Jeffery, the Chief Operating Officer of the Company. To maintain an appropriate balance of independent and non‐ independent directors, Resolutions 3 and 4 respectively for the re‐election of Messrs Griffiths and Jeffery will be withdrawn with both directors stepping down. The Company will then seek to further address its Board composition and the need to attract independent directors.

It should be noted that Mr Jeffery will remain the Chief Operating Officer of the Company principally responsible for the development of the Zara Project and Mr Griffiths will consult to the Company from time to time in relation to its Eritrean Gold Projects.

Mr. Griffiths was previously the Managing Director of Sub Sahara Resources which merged with Chalice in 2008 and has been instrumental in the development of the Eritrean project. His contribution to the Company and the project has been considerable and Chalice recognises and thanks him for this.

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TIM GOYDER Executive Chairman

Chalice Gold Mines Limited, Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 F: + 618 9322 5800 E: info@chalicegold.com www.chalicegold.com

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For further information, please contact:

Tim Goyder, Executive Chairman Dr Doug Jones, Managing Director

Chalice Gold Mines Limited Telephone +61 9322 3960

For North American Investors, please contact:

Joanne Jobin North American Investor Relations Manager jjobin@chalicegold.com Telephone: +1 647 964 0292

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