CHALICE MINING LIMITED — Capital/Financing Update 2009

May 26, 2009

Wednesday, 27[th] May 2009

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ASX Announcement

Zara Gold Project Eritrea – License Extension

Sub-Sahara Resources (Sub-Sahara) (ASX: SBS) is pleased to advise that the 4 exploration licenses covering the Zara Gold Project have been extended by the Government of Eritrea for a further 12 months and this extension has satisfied one of the key pre-conditions of the proposed merger with Chalice Gold Mines Limited (Chalice) (ASX: CHN).

The extension requires Sub-Sahara to complete a pre-feasibility study by the end of October, 2009 and a full feasibility study by May 25, 2010.

Michael Griffiths, Sub-Sahara Managing Director said the Government has shown strong support for Sub-Sahara, having taken into account the current market conditions, amount of work done to date and the expectation of the proposed merger with Chalice.

“Coupled with the recently announced revised resource of 5.04 million tonnes at an average grade of 5.8g/t Au for 944,000 ounces of gold at a cut-off of 1.2 g/t (announced 1[st] May 2009), the stage is set for a very exciting period post the proposed merger with Chalice”.

For and on behalf of Sub-Sahara Resources NL

M.R. Griffiths Managing Director

For further information please e-mail Michael Griffiths via email enquiries@subsahara.com.au or by phone on 61-8-9227 3260

Competent Person

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr M R Griffiths, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Griffiths is a full-time employee of Sub-Sahara Resources NL. Mr Griffiths has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Griffiths consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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About the Zara Gold Project

The Zara Joint Venture comprises Exploration 4 licenses covering an area of 147km[2] with a further 468km[2] of applications situated in northern Eritrea, approximately 160km northwest of Asmara city (Figure 1).

Sub-Sahara hold a 69% interest in the project and on application for a mining license, the Eritrean Government is entitled to a 10% free carried interest. The Government also has the right, by negotiated agreement, to acquire up to a 30% equity participation interest in any mining project and up to a 5% royalty on mined precious metals.

About Sub-Sahara

Sub-Sahara Resources recently announced a proposed merger with Chalice Gold Mines Limited whereby (subject to shareholder and court approval) Sub-Sahara shareholders will receive 1 Chalice Share for every 10.73 Sub-Sahara Shares and will hold approximately 39% of the merged company.

Figure 1 – Zara Gold Project – Eritrea

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