CHALICE MINING LIMITED — Capital/Financing Update 2012

Jun 12, 2012

ABN 47 116 648 956

ASX:CHN TSX:CXN

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ASX Announcement

13 June 2012

Chalice disposes of residual interest in the Gnaweeda Gold Project

Chalice Gold Mines Limited (ASX:CHN) (TSX:CXN) advises that it has sold its remaining 13.5% interest in the Gnaweeda Gold Project to Archean Star Resources Inc.

The consideration for the sale is 5 million common shares in Archean Star which is listed on the TSX Venture Exchange (TSX‐V).

The agreement is subject to the approval of TSX‐V

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TIM GOYDER Executive Chairman

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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 www.chalicegold.com

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For further information, please contact:

For media inquiries, please contact:

Tim Goyder, Executive Chairman Dr Doug Jones, Managing Director Nicholas Read Chalice Gold Mines Limited Read Corporate Telephone +61 9322 3960 Telephone: +618 9388 1474

Forward Looking Statements

This document may contain forward‐looking information within the meaning of Canadian securities legislation and forward‐ looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward‐ looking statements”). These forward‐looking statements are made as of the date of this document and Chalice Gold Mines Limited (the Company) does not intend, and does not assume any obligation to update these forward‐looking statements except as required by law or regulation.

This document may contain forward‐looking information within the meaning of Canadian securities legislation and forward‐ looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward‐ looking statements”). These forward‐looking statements are made as of the date of this document and Chalice Gold Mines Limited (the Company) does not intend, and does not assume any obligation, to update these forward‐looking statements, except as required by law or regulation.

Forward‐looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the likelihood of exploration success, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage.

In certain cases, forward‐looking statements can be identified by the use of words such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved or the negative of these terms or comparable terminology. By their very nature forward‐looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward‐looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company’s interim and annual financial statements, all of which are filed and available for review on SEDAR at sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward‐looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward‐looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward‐looking statements.

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