CHALICE MINING LIMITED — Capital/Financing Update 2011

Dec 12, 2011

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----- Start of picture text ----- ABN 47 116 648 956----- End of picture text -----

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13 December 2011

ASX Announcement

Non‐binding Letter of Intent

Chalice Gold Mines Limited (ASX:CHN)(TSX:CXN) advises that it has signed a Letter of Intent with an entity setting out a proposal for terms upon which that entity may acquire Chalice’s interest in the Zara Gold Project.

The proposal is non‐binding and incomplete and the directors advise that no assurance can be given that any binding transaction will result.

The directors expect to be able to advise of any further developments within the next 14 days.

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RICHARD HACKER Company Secretary

Chalice Gold Mines Limited, Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 F: + 618 9322 5800 E: info@chalicegold.com