CHALICE MINING LIMITED — Capital/Financing Update 2024

Sep 16, 2024

ASX Announcement

17 September 2024

Gonneville approved as Strategic Project by WA Government

Western Australian Government recognises Chalice’s Gonneville PGE-Ni-Cu-Co Project as Strategic and will provide ongoing approvals coordination and support

Highlights

• « Western Australian Premier, Hon. Roger Cook MLA, has approved the grant of Strategic Project status to Chalice’s 100%-owned Gonneville PGE-Ni-Cu-Co Project.

• « Provides formal recognition of the strategic value of the Project and its potential to deliver significant economic and energy transition benefits for Western Australia and the region.

• « Approval as a Strategic Project will see the Department of Jobs, Tourism, Science and Innovation (JTSI) provide a high level of project facilitation including for regulatory approvals and infrastructure requirements.

• « Environmental approvals for the Project will be subject to streamlined assessment through the new Green Energy Assessment Unit.

Overview

Chalice Mining Limited (“Chalice” or “the Company”, ASX: CHN) is pleased to advise that the Premier of Western Australia and Minister for State and Industry Development, Hon Roger Cook MLA, has awarded Strategic Project status to the 100%-owned Gonneville Project (“the Project”) under Western Australia’s Lead Agency Framework.

The Gonneville Project is located on Chalice-owned farmland, 70km northeast of Perth. The largescale Project has the potential to produce a rare mix of critical and strategic minerals required for decarbonisation and urbanisation, such as nickel, copper, cobalt, palladium and platinum. The Project is currently in the Pre-Feasibility stage, with regulatory approvals underway in parallel.

The Lead Agency prioritisation framework is designed to focus the efforts of government towards those projects that need to proceed first to deliver on the State’s decarbonisation and economic diversification agenda.

The Green Energy Major Projects group within the Department of Jobs, Tourism, Science and Innovation (JTSI) will assume Lead Agency responsibility for the Project and provide a high level of project facilitation, including for regulatory approvals and infrastructure requirements.

JTSI is a key Western Australian Government Agency with the mission to promote Western Australia and advance the diversification and growth of the State’s economy.

In addition to this support, environmental approvals for the Project will be subject to assessment through the new Green Energy Assessment Unit. This dedicated team within the Department of Water and Environmental Regulation is tasked with supporting the Environmental Protection Authority to facilitate the streamlined assessment of Green Energy projects such as the Gonneville Project.

Registered Office ABN 47 116 648 956

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Level 3, 46 Colin Street West Perth, Western Australia PO Box 428, Perth WA 6872

info@chalicemining.com www.chalicemining.com

@chalicemining chalice-mining

T: +61 8 9322 3960

More information on this State Government initiative and the Green Energy Major Projects group can be found here: https://www.wa.gov.au/organisation/department-of-jobs-tourism-science-and- - - innovation/green energy major projects.

Chalice Mining CEO and Managing Director, Alex Dorsch, welcomed this support, “Chalice is pleased to receive this formal recognition and support from the Western Australian Government, demonstrating the strategic importance of Gonneville as the first major Platinum Group Element discovery in Australia, and one of the largest critical and strategic minerals projects in the state.

“We are grateful for the recognition and JTSI's ongoing case management support. Approval as a Strategic Project under the Lead Agency Framework recognises the greater engagement with all parts of the WA Government as we progress regulatory approvals.

“It’s also pleasing that environmental approvals for the Gonneville Project will be supported by the Green Energy Assessment Unit, created as part of the streamlined approach to the assessment of Green Energy projects announced by Premier Cook late last year.

“We look forward to working with the Western Australian and Commonwealth Governments, local communities and Traditional Owners, as well as Mitsubishi Corporation, under our strategic MOU, as we progress approvals and project studies for this important project.”

About the Gonneville Project

The 100%-owned Gonneville PGE-Nickel-Copper-Cobalt Project is located on Chalice-owned farmland, ~70km north-east of Perth in Western Australia. The greenfield Project was staked in early 2018 as part of Chalice’s global search for high-potential nickel sulphide exploration opportunities.

The Project is centred on the Gonneville Resource (refer to ASX Announcement on 23 April 2024) – a shallow, tier-1 scale greenfield critical and strategic minerals discovery by Chalice’s geologists in early 2020. The Resource hosts a rare mix of critical and strategic minerals required for decarbonisation and urbanisation, such as palladium, platinum, nickel, copper and cobalt (Table 1).

Table 1. Gonneville Mineral Resource Estimate (MRE) – 23 April 2024.

Classification Mass*	Grade	Contained Metal
Mt	3E (g/t) Ni (%) Cu (%) Co (%)	3E (Moz) Ni (kt) Cu (kt) Co (kt)
Measured 2.9	1.20 0.21 0.17 0.018	0.12 6.1 4.8 0.52
Indicated 400	0.79 0.15 0.087 0.015	10 610 370 65
Inferred 250	0.80 0.15 0.076 0.014	6.4 370 200 37
Total 660	0.79 0.15 0.083 0.015	17 960 540 96

• Within pit constrained cut-off of A$25/t NSR and underground MSO cut-off of A$110/t NSR (refer to ASX Announcement on 23 April 2024 for details of cut-off approach and assumptions). Note some numerical differences may occur due to rounding to 2 significant figures.

Large-scale critical and strategic mineral resources like Gonneville are very rare in the western world and therefore have high strategic value. Current global production of palladium, platinum, nickel and cobalt is dominated by Russia, South Africa, Indonesia and the Democratic Republic of Congo.

Chalice recognises the need to develop the Gonneville Project sustainably and responsibly, with a best practice approach to environmental, social and cultural heritage management. Chalice is currently progressing development studies to determine the feasibility of the Project and has commenced the regulatory approvals process.

The Gonneville Project is favourably located, with access to established road, rail, port and highvoltage power infrastructure nearby, plus access to a significant ‘drive-in, drive-out’ mining workforce in the Perth surrounds (Figure 1).

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Figure 1. Gonneville Project location.

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This announcement has been authorised for release by the Disclosure Committee.

For further information, please visit www.chalicemining.com or contact:

Corporate Enquiries	Media Enquiries	Follow our communications
Ben Goldbloom	Nicholas Read	LinkedIn:chalice-mining
GM Corporate Development	Principal and Managing Director	Twitter:@chalicemining
Chalice Mining Limited	Read Corporate Investor Relations
+61 8 9322 3960	+61 8 9388 1474
info@chalicemining.com	info@readcorporate.com.au

Competent Person Statement

The information in this announcement that relates to Mineral Resources has been extracted from the ASX announcement titled “Gonneville Resource Remodelled to Support Selective Mining” dated 23 April 2024. This announcement is available to view on the Company’s website at www.chalicemining.com.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and that all material assumptions and technical parameters underpinning the estimates in the original release continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the relevant original market announcement.

Forward Looking Statements

This announcement may contain forward-looking statements and forward information, (collectively, forward-looking statements). These forward-looking statements are made as of the date of this Report and Chalice Mining 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 the Company’s expectations or beliefs regarding future events and include, but are not limited to: the impact of the discovery on the Gonneville Project’s capital payback; the Company’s planned strategy, expenditure and corporate objectives; estimated timing of the Gonneville Project development schedule; the formal arrangements contemplated by the Memorandum of Understanding with Mitsubishi Corporation, the realisation of Mineral Resource Estimates; timing of anticipated production and final investment decision; sustainability initiatives; climate change scenarios; the likelihood of further exploration success; the timing and cost of planned exploration and study activities on the Company’s projects; mineral processing strategy; access to sites for planned drilling activities; planned production and operating costs profiles; estimated carbon emissions; planned capital requirements; the success of future potential mining operations and the timing of results from planned exploration programs and metallurgical testwork.

In certain cases, forward-looking statements can be identified by the use of words such as, , “anticipate” or “anticipated”, “commence”, “continue”, “estimate”, “for”, “future”, “is”, “likely”, “may”, “open”, “plan” or “planned”, “potential”, “strategy”, “target”, “will” 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 and development activities; whether geophysical and geochemical anomalies are related to economic mineralisation or some other feature; obtaining appropriate approvals to

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undertake exploration and development activities; metal grades being realised; metallurgical recovery rates being realised; results of planned metallurgical test work including results from other domains not tested yet; the outcomes of feasibility studies, scaling up to commercial operations; the speculative nature of mineral exploration and development; changes in project parameters as plans continue to be refined and feasibility studies are undertaken; changes in exploration and study programs and budgets based upon the results; successful completion of the objectives contemplated in the Memorandum of Understanding with Mitsubishi Corporation; changes in commodity prices and economic conditions; political and social risks, accidents, labour disputes and other risks of the mining industry; delays or difficulty in obtaining governmental approvals, necessary licences, permits or financing to undertake future mining development activities; changes to the regulatory framework within which Chalice operates or may in the future; movements in the share price of investments and the timing and proceeds realised on future disposals of investments 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 the ASX at asx.com.au.

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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