CHALICE MINING LIMITED — Director's Dealing 2009

Sep 17, 2009

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ABN 47 116 648 956

18 September 2009

Australian Securities Exchange Limited Exchange Plaza 2 The Esplanade PERTH WA 6000

Dear Sir/Madam

Proposed issue of unlisted share options to Executive Director

The Company advises that the board of directors has resolved, subject to shareholder approval at the Company’s next Annual General Meeting, to issue unlisted options to Mike Griffiths, Executive Director of Chalice Gold Mines Limited, on the following terms and conditions:

Tranche 1

Number:	375,000
Exercise price:	$0.50
Vesting date:	1 September 2010
Expiry:	1 September 2012
Tranche 2
Number:	375,000
Exercise price:	$0.50
Vesting date:	1 September 2011
Expiry:	1 September 2012

The unlisted share options will otherwise be issued pursuant to the terms of the Company’s Employee Share Option Plan.

Please also see attached Appendix 3Y.

Yours faithfully,

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RICHARD HACKER Company Secretary

Appendix 3Y Change of Director’s Interest Notice

Appendix 3Y

Change of Director’s Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 30/9/2001.

Name of entity	CHALICE GOLD MINES LIMITED
ABN	47 116 648 956

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	Michael Griffiths
Date of last notice	7 September 2009

Part 1 - Change of director’s relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.

Direct or indirect interest	Indirect
Nature of indirect interest(including registered holder)Note: Provide details of the circumstances giving rise to the relevant interest.
Date of change	18 September 2009
No. of Securities held prior to change	600,960 fully paid ordinary shares
Class	Unlisted Options
Number acquired	Subject to shareholder approval, 375,000 unlistedoptions with an exercise price of 50 cents, avesting date of 1 September 2010 and an expirydate of 1 September 2012.Subject to shareholder approval, 375,000 unlistedoptions with an exercise price of 50 cents, avesting date of 1 September 2011 and an expirydate of 1 September 2012.
Number disposed	Nil

• See chapter 19 for defined terms.

Appendix 3Y Page 2

Appendix 3Y Change of Director’s Interest Notice

Value/ConsiderationNote: If consideration is non-cash, provide details and estimated valuation	Value/ConsiderationNote: If consideration is non-cash, provide details and estimated valuation	Value/ConsiderationNote: If consideration is non-cash, provide details and estimated valuation	Nil	Nil
No. of securities held after change			600,960 fully paid ordinary sharesSubject to shareholder approval, 375,000 unlistedoptions with an exercise price of 50 cents, avesting date of 1 September 2010 and an expirydate of 1 September 2012.Subject to shareholder approval, 375,000 unlistedoptions with an exercise price of 50 cents, avesting date of 1 September 2011 and an expirydate of 1 September 2012.
			Subject to shareoptions with avesting date of	holder approval, 375,000 unn exercise price of 50 ce1 September 2010 and an
			date of 1 Septem	ber 2012.
			Subject to shareoptions with a	holder approval, 375,000 unn exercise price of 50 ce
			vesting date of	1 September 2011 and an
			date of 1 Septe	ber 2012.
Nature of change			Issue of unliste	d options under the Com
Example: on-market trade, off-market trade, exercise of options, issue of securitiesunder dividend reinvestment plan, participation in buy-back

Part 2 – Change of director’s interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.

disclosed in this part.	disclosed in this part.
	Detail of contract			N/A
	f i			N/A
	Nature o nterest
	Name of registered(if issued securities)	holder		N/A
	Date of change			N/A
	No. and class of s	ecurities to w	hich	N/A
	interest related priNote: Details are o	or to changenly required	for a
	contract in relation th hd	o which the in	terest
	as cange
	Interest acquired			N/A
	Interest disposed			N/A
	Value/Consideratio	n		N/A
	Note: If consideraprovide details a	tion is non-nd an esti	cash,mated
	valuation
	Interest after chang	e		N/A

• See chapter 19 for defined terms.

Appendix 3Y Page 3

11/3/2002