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CHALICE MINING LIMITED Capital/Financing Update 2010

Mar 14, 2010

64649_rns_2010-03-14_b7066317-e322-4874-ba40-eb5bfd76e9c1.pdf

Capital/Financing Update

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Chalice Gold Announces Private Share Placement

Chalice Gold Mines Limited ABN 47 116 648 956

NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Chalice Gold Mines Limited announces that it has agreed to place approximately 17.2million shares at A$0.36 per share, raising approximately A$6.2 million before issue costs (the “Offering”).

Net proceeds will be used to complete the feasibility study on the Koka deposit within the Zara Gold Project in Eritrea and for further exploration drilling at Koka East and Koka South.

Thomas Weisel Partners Canada Inc (Thomas Weisel) will act as placement agent for the Offering. The shares will be issued without a prospectus and by way of private placement exemptions in Canada, in the United States on a private placement basis pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, and in the United Kingdom and Australia pursuant to applicable exemptions.

Subject to completion of an Agency Agreement with Thomas Weisel and Subscription Agreements with the placees, closing is scheduled on or about March 30, 2010.

15 March 2010

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INVESTMENT HIGHLIGHTS Scoping study completed Feasibility study by Mid-2010

Medium term production potential

Large underexplored ground position with potential for discovery of additional resources

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TIM GOYDER Executive Chairman

www.chalicegold.com

Chalice Gold Mines Limited, Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 F: +618 9322 5800 E: [email protected]