CHALICE MINING LIMITED — Capital/Financing Update 2010

Sep 14, 2010

15 September 2010

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Australian Securities Exchange Limited Exchange Plaza 2 The Esplanade Perth WA 6000

Non-Renounceable Rights Issue Shortfall

Chalice Gold Mines Limited advises that it has received applications for 23,500,909 shares under its fully underwritten, non-renounceable Rights Issue raising $12,672,353.

The underwriter has been advised that, subject to clearance of funds, the shortfall is 6,671,360 shares amounting to $2,801,971.20.

The Directors wish to thank shareholders for their continued support of the Company and advises that the holding statements will be issued on or around 21 September 2010.

Yours faithfully

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RICHARD HACKER Chief Financial Officer/Company Secretary