CHALICE MINING LIMITED — Capital/Financing Update 2007

Nov 15, 2007

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Joint Venture agreement with De Grey Mining Limited; to spend $1.67 million at Yandeearra Gold Project

Chalice Gold Mines Limited (‘Chalice Gold Mines’) advises that it has reached agreement with De Grey Mining Limited (‘De Grey Mining’) to enter into a joint venture to explore for gold and base metals at its Yandeearra Gold Project in the West Pilbara.

Under the terms of the joint venture, De Grey Mining will make an initial payment comprising the issue of 2 million shares and 2 million unlisted, 3 year, 20 cent options, to Chalice Gold Mines upon executing a formal joint venture agreement. Based on the current share price and standard option valuation formulae, this equates to a value of approximately $265,000. These securities are not subject to escrow provisions.

De Grey Mining is required to spend $835,000 over a two year period to earn 60% of the rights to all minerals other than iron ore and uranium. De Grey Mining may then elect to spend a further $835,000 over a further 3 years to earn 80%. A minimum expenditure requirement of $417,000 applies for the first year.

Chalice Gold Mines may then elect to contribute pro rata or convert its 20% interest to a 10% interest free carried through to completion of a bankable feasibility study. This joint venture agreement includes conditions precedent typical of such arrangements including confirmation of ongoing tenure to the subject tenements.

The joint venture will add a new dimension to exploration efforts at the Yandeearra Gold Project by focusing on the base metal potential of the subject tenements, where little or no base metals focused historical exploration has been undertaken.

For further information, please refer to the attached ASX announcement made by De Grey Mining.

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Andrew Bantock Executive Chairman 16 November 2007

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