CHALICE MINING LIMITED — Capital/Financing Update 2009

Feb 11, 2009

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AVOCA RESOURCES TRANSACTION SETTLEMENT

Chalice Gold Mines Limited (Chalice Gold Mines) advises that completion has today been achieved for Tranche 2 of the sale of the Higginsville and Chalice gold projects to Avoca Resources Limited (Avoca), as approved by shareholders on 22 June 2007.

The Tranche 2 settlement comprised a package of exploration tenements south of the Chalice Gold Mine and completion was subject to the grant of Exploration License 63/1071 and then the subsequent amalgamation into EL63/1071 of certain Prospecting Licenses held by Chalice Gold Mines. These conditions have now been satisfied.

Chalice Gold Mines has been issued 483,335 Avoca shares (ASX: AVO), being $841,000 of Tranche 2 consideration in full and final satisfaction for the sale.

The Company now has $9.4 million of cash on hand (as reported in the December 2008 Appendix 5B) and $0.9 million of liquid investments.

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Tim Goyder Executive Chairman

12 February 2009

Chalice Gold Mines Limited Level 2/1292 Hay Street, West Perth, WA 6005 GPO Box 2890, Perth, WA 6001 T: +618 9322 3960 F: +618 9322 5800

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