CHALICE MINING LIMITED — Director's Dealing 2009

Jun 11, 2009

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ABN 47 116 648 956

12 June 2009

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

Dear Sir/Madam

Proposed issue of unlisted share options to Managing 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 Dr Doug Jones, Managing Director of Chalice Gold Mines Limited, on the following terms and conditions:

Tranche 1

Number: 1,250,000 Exercise price: $0.35 Vesting date: 31 March 2010 Expiry: 31 March 2014 Tranche 2 Number: 1,250,000 Exercise price: $0.45 Vesting date: 31 March 2011 Expiry: 31 March 2014

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

Dr Jones is a Geologist with over 30 years experience in international minerals exploration in Africa, Australia, South America and Europe, including with Delta Gold, Aurion Gold and TSX listed Golden Star Resources – where he has operated at senior management level and led discoveries, new project generation and corporate development.

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	Dr Doug Jones
Date of last notice	2 December 2008

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	Direct
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.	N/A
Date of change	12 June 2009 (Subject to shareholder approval)
No. of securities held prior to change	Nil
Class	Unlisted share options
Number acquired	1,250,000 unlisted options with and exercise price of 35 cents, a vesting date of 31 March 2010 and an expiry date of 31 March 2014. 1,250,000 unlisted options with and exercise price of 45 cents, a vesting date of 31 March 2011 and an expiry date of 31 March 2014. Subject to shareholder approval, all unlisted options will be issued under the terms of the Company’s Employee Share Option Plan.

• See chapter 19 for defined terms.

Appendix 3Y Page 2

Appendix 3Y Change of Director’s Interest Notice

Number disposed	Nil
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation	Nil
No. of securities held after change	1,250,000 unlisted options with and exercise price of 35 cents, a vesting date of 31 March 2010 and an expiry date of 31 March 2014. 1,250,000 unlisted options with and exercise price of 45 cents, a vesting date of 31 March 2011 and an expiry date of 31 March 2014.
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back	Subject to shareholder approval, all unlisted options will be issued under the terms of the Company’s Employee Share Option Plan.

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.

Detail of contract	N/A
Nature of interest	N/A
Name of registered holder (if issued securities)	N/A
Date of change	N/A
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed	N/A
Interest acquired	N/A
Interest disposed	N/A
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation	N/A
Interest after change	N/A

• See chapter 19 for defined terms.

Appendix 3Y Page 3

11/3/2002