CHALICE MINING LIMITED — Capital/Financing Update 2018

May 22, 2018

==> picture [595 x 107] intentionally omitted <==

ASX Announcement

23 May 2018

Chalice targets new growth front in battery metals following acquisition of two highly prospective vanadium-nickel projects

Chalice secures two well-located and prospective vanadium-nickel exploration projects in Australia, providing an ideal entry point to the battery metals exploration space

Highlights

• Two prospective exploration projects secured, giving Chalice exposure to the rapidly growing vanadium and nickel markets, where the Company sees exceptional growth potential.

• Chalice has applied for a suite of Exploration Licences in central Queensland and 80km north-east of Perth, WA.

• The Licence Applications include multiple vanadium targets , some of which are also highly prospective for nickel, copper, Platinum Group Elements (PGE’s) and titanium.

• The Flinders River Vanadium Project in Queensland consists of nine Licence Applications (2,270km[2] ), surrounding the ~2.6Bt shale-hosted Richmond Vanadium Project , owned by Intermin Resources (ASX: IRC):

• Vanadium-bearing Toolebuc formation shown to potentially extend over the licence areas, as outlined by radiometric imagery;

• Field work expected to commence once the applications are granted in Q3 2018, including Aircore drilling to define the lateral continuity of the Toolebuc formation.

• The Julimar Nickel-Vanadium Project located near Perth, WA, consists of two Licence Applications (156km[2] ), covering a 26 x 7km interpreted mafic-ultramafic layered intrusive complex:

• Layered intrusion prospective for both magmatic Nickel-Copper-Platinum Group Elements and intrusion related vanadium-titanium mineralisation;

• Field work expected to commence once applications are granted in Q3 2018, including ground magnetic, gravity and EM geophysics to define drill targets.

Chalice Gold Mines Limited (“Chalice” or “the Company”) (ASX: CHN | TSX: CXN) is pleased to advise that it has embarked on an exciting new growth opportunity in the battery metals exploration sector after securing two welllocated and highly prospective Australian vanadium-nickel exploration projects.

The Company has successfully applied for a suite of Exploration Licences in the Richmond region of central Queensland and in the Julimar region, located just outside of Perth in Western Australia, giving it a highly prospective entry point into the battery metals exploration space with easily accessible exploration targets.

The Projects will provide Chalice with exposure to the growing demand for battery metals, such as vanadium and nickel, as well as copper, Platinum Group Elements (PGEs) and titanium, opening up a new exploration and growth pathway alongside its existing gold portfolio in the world-class Abitibi Province in Canada, the Tennant Creek region of the Northern Territory and the Bendigo region of Victoria.

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 1

==> picture [63 x 52] intentionally omitted <==

The Flinders River Vanadium Project

The Flinders River Vanadium Project is located in central Queensland, approximately 250km east of Mt Isa and 380km west of Townsville. The project is strategically located within close proximity to the Flinders Highway and Great Northern Railway that connects to the port of Townsville.

The region is highly prospective for sedimentary-hosted vanadium mineralisation, with several globally significant vanadium resources reported by Intermin Resources Limited (ASX: IRC) and Multicom Resources (Figure 1).

==> picture [455 x 356] intentionally omitted <==

Figure 1. Flinders River Vanadium Project location map.

The resources reported by Intermin and Multicom are considered to be some of the world’s largest and occur within 30km of Chalice’s application permits.

Importantly, the vanadium resources reported by Intermin and Multicom share a similar radiometric response with exploration targets seen on the Chalice permits – which is interpreted to be mapping the presence of shale rich Toolebuc formation (Figure 2).

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 2

==> picture [63 x 52] intentionally omitted <==

==> picture [455 x 354] intentionally omitted <==

Figure 2. Uranium Radiometric Imagery over tenement areas.

Known vanadium mineralisation within the Toolebuc formation typically occurs near surface within oxidised coarse limestone-rich clay and underlying fine-grained carbonate shales where enrichment of vanadium, along within other metals (molybdenum, nickel and copper), has occurred through sedimentary processes.

The advantage of these shale-hosted vanadium deposits include:

• Simple, shallow mining – potential free dig, open cut mining at very low strip ratios;

• Low processing cost – potential low-cost removal of the coarse fraction via gravity separation methods and potentially flotation to produce a high grade intermediate feedstock; and

• Proximity to infrastructure – proximal access to road and rail infrastructure is highly advantageous.

The Company expects the applications to be granted in Q3 2018, after which it will immediately commence field reconnaissance work. An Aircore drilling program is currently being planned, which aims to define the lateral continuity and thickness of the Toolebuc formation over the tenement areas. The Aircore program will involve drilling wide-spaced shallow holes to delineate any potential mineralisation in a low cost and rapid manner.

The Julimar Nickel-Vanadium Project

The Julimar Nickel-Vanadium project is located only 80km north-east of Perth, with excellent access via the Great Northern Highway and established infrastructure nearby (Figure 3).

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 3

==> picture [63 x 52] intentionally omitted <==

==> picture [285 x 361] intentionally omitted <==

Figure 3. Julimar Project location map.

The Julimar Project is prospective for both magmatic-style Nickel-Copper-Platinum Group Elements (Ni-Cu-PGE) and intrusion related Iron-Vanadium-Titanium (Fe-V-Ti) mineralisation within an interpreted large (26 x 7km) layered mafic-ultramafic complex.

A review of limited historical exploration, along with interpretation of existing geophysical datasets, supports the interpretation of a prospective mafic-ultramafic intrusive geological setting (Figure 4).

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 4

==> picture [63 x 52] intentionally omitted <==

==> picture [285 x 403] intentionally omitted <==

Figure 4. Priority Target Areas within Igneous Complex.

The Company expects the applications to be granted in Q3 2018, after which it plans to carry out field reconnaissance work followed by targeted ground magnetic, gravity and electromagnetic surveys over selected target zones (potential feeder zones) within the greater intrusive complex. Any anomalies generated from the surface geophysical surveys will be the basis for follow-up drill testing.

Chalice’s Chief Executive Officer Alex Dorsch said: “The addition of these exciting new vanadium-nickel projects to Chalice’s exploration portfolio provides a low-cost and highly prospective entry point for the Company with significant exposure to strengthening vanadium and nickel markets.”

“We look forward to securing the grant of the tenements and getting our field crews on the ground as quickly as possible to commence exploration. Both projects are exceptionally well located with regard to infrastructure and access, and we are confident that, if we are successful in defining areas of significant mineralisation, we will be in a great position to advance these projects rapidly and effectively.”

==> picture [75 x 56] intentionally omitted <==

Alex Dorsch Chief Executive Officer

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 5

==> picture [63 x 52] intentionally omitted <==

For further information, please contact:

Nicholas Read, Principal and Managing Director Read Corporate Investor Relations +61 8 9388 1474 info@readcorporate.com.au

Alex Dorsch, Chief Executive Officer Chalice Gold Mines Limited +61 8 9322 3960 info@chalicegold.com

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 6

==> picture [63 x 52] intentionally omitted <==

Competent Persons and Qualifying Persons Statement

The information in this report that relates to Exploration Results in relation to the Company’s Projects is based on information compiled by Dr. Kevin Frost BSc (Hons), PhD, who is a Member of the Australian Institute of Geoscientists. Dr. Frost is a full-time employee of the company and has sufficient experience in the field of activity being reported to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and is a Qualified Person under National Instrument 43-101 – ‘Standards of Disclosure for Mineral Projects’. The Qualified Person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release. Dr. Frost consents to the release of information in the form and context in which it appears here.

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.

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, the estimation of mineral reserve and mineral resources, the realisation of mineral reserve estimates, the likelihood of exploration success at the Company’s projects, 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”, “will”, “may”, “would”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “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 may include, among others, risks related to actual results of current or planned exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in mineral resources or 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 forwardlooking statements.

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 7

==> picture [63 x 52] intentionally omitted <==

APPENDIX 1 – FLINDERS RIVER PROJECT - JORC TABLE 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.  No sampling completed by Chalice
Drilling techniques Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).  No drilling completed by Chalice
Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.  No drilling undertaken by Chalice  Not applicable  Not applicable
Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged.  No logging undertaken by Chalice  Not applicable  Not applicable

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 8

==> picture [63 x 52] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled.  Not applicable  Not applicable  Not applicable  Not applicable  Not applicable  Not applicable
Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established  Not applicable  Not applicable  Not applicable
Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.  Not applicable  Not applicable  Not applicable  Not applicable
Location of data points Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used Quality and adequacy of topographic control.  Not applicable  MGA94, Zone 54 projection  Not applicable
Data spacing and distribution Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied.  Not applicable  Not applicable  Not applicable

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 9

==> picture [63 x 52] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.  Not applicable  Not applicable
Sample security The measures taken to ensure sample security.  Not applicable
Audits or reviews The results of any audits or reviews of sampling techniques and data.  Not applicable

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation		Commentary
Mineral	Type, reference name/number, location and ownership		The Flinders River project comprises 9
tenement and	including agreements or material issues with third parties		application exploration permits
land tenure	such as joint ventures, partnerships, overriding royalties,		(EPM26858, EPM26859, EPM26860,
status	native title interests, historical sites, wilderness or national		EPM26861, EPM26862, EPM26863,
	park and environmental settings.		EPM26864, EPM26865 and
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.		EPM26866) which covers a total area of 2270km2located ~250km E of Mount Isa, Queensland. The applications are owned 100% by
			CGM LITHIUM Pty Ltd, a wholly
			owned subsidiary of Chalice Gold
			Mines Limited
Exploration done	Acknowledgment and appraisal of exploration by other		Chalice has not undertaken a detailed
by other parties	parties.		review of previous exploration results
Geology	Deposit type, geological setting and style of mineralisation.		The Flinders River project is
			prospective for sedimentary
			(carbonate-shale) hosted Vanadium,
			Molybdenum and Nickel
			mineralisation
Drill hole	A summary of all information material to the understanding		No drilling reported
Information	of the exploration results including a tabulation of the
	following information for all Material drill holes:
	 easting and northing of the drill hole collar
	 elevation or RL (Reduced Level – elevation above sea
	level in metres) of the drill hole collar
	 dip and azimuth of the hole
	 down hole length and interception depth
	 hole length.

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 10

==> picture [63 x 52] intentionally omitted <==

Criteria	JORC Code explanation		Commentary
Data	In reporting Exploration Results, weighting averaging		Not applicable
aggregation	techniques, maximum and/or minimum grade truncations
methods	(eg cutting of high grades) and cut-off grades are usually
	Material and should be stated.
	Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results,		Not applicable
	the procedure used for such aggregation should be stated
	and some typical examples of such aggregations should be
	shown in detail.
	The assumptions used for any reporting of metal equivalent		Not applicable
	values should be clearly stated.
Relationship	These relationships are particularly important in the		Not applicable
between	reporting of Exploration Results.
mineralisation widths and intercept lengths	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
	If it is not known and only the down hole lengths are
	reported, there should be a clear statement to this effect (eg
	‘down hole length, true width not known’).
Diagrams	Appropriate maps and sections (with scales) and tabulations		See Figures in body of report
	of intercepts should be included for any significant discovery
	being reported These should include, but not be limited to a
	plan view of drill hole collar locations and appropriate
	sectional views.
Balanced	Where comprehensive reporting of all Exploration Results is		Chalice has not yet reviewed any
reporting	not practicable, representative reporting of both low and		previous exploration results
	high grades and/or widths should be practiced to avoid
	misleading reporting of Exploration Results.
Other	Other exploration data, if meaningful and material, should		Chalice has not yet reviewed any
substantive	be reported including (but not limited to): geological		previous exploration results
exploration data	observations; geophysical survey results; geochemical survey
	results; bulk samples – size and method of treatment;
	metallurgical test results; bulk density, groundwater,
	geotechnical and rock characteristics; potential deleterious
	or contaminating substances.
Further work	The nature and scale of planned further work (eg tests for		Once licences are granted Aircore
	lateral extensions or depth extensions or large-scale step-out		Drilling will be carried out as an initial
	drilling).		evaluation of the tenement holdings

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 11

==> picture [63 x 52] intentionally omitted <==

APPENDIX 2 – JULIMAR PROJECT - JORC TABLE 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.  Drill samples collected by diamond drilling technique  All holes were drilled as PQ and HQ2 core.  Half-core samples were submitted to Genalysis Laboratory Services for assay for 61 elements by various methods (fire assay (Au), four acid digest and optical emission spectroscopy or mass spectrometry, and fused disc/XRF). All sample pulps and residues are retained at Genalysis
Drilling techniques Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).  All drilling for which results are reported was completed by Bestbet Pty Ltd and documented in Statutory Report A092737 submitted to WA DMIRS  The program was carried out by Winmax Drilling Pty Ltd, utilising a track-mounted Boart Longyear LF70 rig capable of drilling to over 800m in depth  Holes were surveyed at 50m intervals, using a Pathfinder single shot electronic survey camera. The core was oriented every 3 or 6m run, using an electronic Reflex ACT core orienting tool. Core was marked up and logged on site and cut in Perth, with sample intervals determined by Xserv geologists. Selected intervals of core were assayed  Drill holes oriented perpendicular to the interpreted strike of the magnetic trend
Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.  Sample recoveries were visually estimated and recorded.  Not documented  Not documented

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 12

==> picture [63 x 52] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged.  Not documented  Both quantitative and qualitative measurement were produced by Bestbet and documented in DMIRS report A092737  Not documented, although raw data files provided.
Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled.  Half-core samples were submitted to Genalysis Laboratory Services for assay  Not applicable  Sample preparation follows industry best practice standards and is conducted by internationally recognised laboratories (i.e. Genalysis Laboratory Services)  Not documented  Not documented  Sample size submitted to laboratory consistent with industry standards
Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established  61 elements were assayed by various methods (fire assay (Au), four acid digest and optical emission spectroscopy or mass spectrometry, and fused disc/XRF). All these techniques are considered total  Not documented  Not documented
Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.  Internal review by alternate company personnel  None completed  Data extracted from statutory reports, entered into excel spreadsheets, validated and loaded into and excel database  An element to oxide ratio (1.782) was used to convert raw vanadium % values into V2O5 % values

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 13

==> picture [63 x 52] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Location of data points Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used Quality and adequacy of topographic control.  All holes in the program were marked out using a handheld GPS unit  MGA94, Zone 50 projection  RLs based on GPS data
Data spacing and distribution Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied.  Holes located approximately 35 to 100m apart  Not applicable  No compositing completed
Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.  Not documented by the report’s author.  Not documented by the author, and not material at this stage of exploration.
Sample security The measures taken to ensure sample security.  Not documented
Audits or reviews The results of any audits or reviews of sampling techniques and data.  Not documented

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation		Commentary
Mineral	Type, reference name/number, location and ownership		The Julimar Project comprises 2
tenement and	including agreements or material issues with third parties		application exploration licences
land tenure	such as joint ventures, partnerships, overriding royalties,		(E(A)70/5118 and E(A)70/5119) which
status	native title interests, historical sites, wilderness or national		covers a total area of 156km2located
	park and environmental settings.		~80km NE of Perth, Western
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.		Australia. The applications are owned 100% by CGM (WA) Pty Ltd, a wholly owned subsidiary of Chalice Gold Mines
			Limited
Exploration done	Acknowledgment and appraisal of exploration by other		Alcoa-Hamersley and Creasy Group
by other parties	parties.		(Bestbet) completed limited drilling.
			Hamersley completed 9 holes
			between 1976 and 1977 and Bestbet
			drilled 3 DD holes between 2006 and
			20111 targeting Ti-V mineralisation
			within the intrusive complex. Drilling
			returned some encouraging Ti-V
			intersections. No drilling or other
			exploration activities are known to
			have targeted concealed Vanadium
			mineralisation within the EL.
Geology	Deposit type, geological setting and style of mineralisation.		The project is prospective for
			magmatic hosted Ni-Cu-PGE and V-Ti
			hosted mineralisation within layered

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 14

==> picture [63 x 52] intentionally omitted <==

Criteria	JORC Code explanation		Commentary
			mafic-ultramafic intrusive rocks within
			the Southwest Super Terrane of the
			Yilgarn Craton.
Drill hole	A summary of all information material to the understanding		No material information, for further
Information	of the exploration results including a tabulation of the		details please refer to DMIRS WAMEX
	following information for all Material drill holes:		report A92737.
	 easting and northing of the drill hole collar
	 elevation or RL (Reduced Level – elevation above sea
	level in metres) of the drill hole collar
	 dip and azimuth of the hole
	 down hole length and interception depth
	 hole length.
Data	In reporting Exploration Results, weighting averaging		Not applicable
aggregation	techniques, maximum and/or minimum grade truncations
methods	(eg cutting of high grades) and cut-off grades are usually
	Material and should be stated.
	Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results,		Not applicable
	the procedure used for such aggregation should be stated
	and some typical examples of such aggregations should be
	shown in detail.
	The assumptions used for any reporting of metal equivalent		No metal equivalents reported
	values should be clearly stated.
Relationship	These relationships are particularly important in the		see Figures in body of report
between	reporting of Exploration Results.
mineralisation widths and intercept lengths	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
	If it is not known and only the down hole lengths are
	reported, there should be a clear statement to this effect (eg
	‘down hole length, true width not known’).
Diagrams	Appropriate maps and sections (with scales) and tabulations		See Figures in body of report
	of intercepts should be included for any significant discovery
	being reported These should include, but not be limited to a
	plan view of drill hole collar locations and appropriate
	sectional views.
Balanced	Where comprehensive reporting of all Exploration Results is		Not applicable
reporting	not practicable, representative reporting of both low and
	high grades and/or widths should be practiced to avoid
	misleading reporting of Exploration Results.
Other	Other exploration data, if meaningful and material, should		Not applicable
substantive	be reported including (but not limited to): geological
exploration data	observations; geophysical survey results; geochemical survey
	results; bulk samples – size and method of treatment;
	metallurgical test results; bulk density, groundwater,
	geotechnical and rock characteristics; potential deleterious
	or contaminating substances.
Further work	The nature and scale of planned further work (eg tests for		The Company expects the applications
	lateral extensions or depth extensions or large-scale step-out		to be granted in Q3 2018, after which
	drilling).		it plans to carry out field
			reconnaissance work followed by
			targeted ground magnetic, gravity and
			electromagnetic surveys over selected
			target zones (potential feeder zones)
			within thegreater intrusive complex.

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 15

==> picture [63 x 52] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
		Any anomalies generated from the
		surface geophysical surveys will be the
		basis for follow-up drill testing.

Chalice Gold Mines Limited I ABN 47 116 648 956 I Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 I F: +618 9322 5800 I info@chalicegold.com I www.chalicegold.com I Page 16