CHALICE MINING LIMITED — Interim / Quarterly Report 2021

Apr 29, 2021

30 April 2021

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March 2021 Quarterly Activities Report
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Julimar emerging as a new world-class nickel-copper-PGE district

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Highlights

Julimar Nickel-Copper-PGE Project, Western Australia (100%-owned)

• ~90,000m of drilling completed to date at the ~1.8km x >0.9km Gonneville Intrusion ; seven rigs are continuing the ~160,000m step-out and resource definition drill program.

• Drilling has expanded the G4-G11 high-grade zones to the north-east and the G1-G2 zones down-dip , while infill drilling continues to confirm the current geological interpretation.

• Given the continued expansion of the Gonneville mineralised footprint, necessitating additional definition drilling, the maiden Mineral Resource Estimate is now anticipated in late Q3 2021 .

• Promising early-stage locked-cycle metallurgical testwork results from high-grade G1-G2 zone composites – metal recoveries of 86.3% Pd , 73.9% Pt, 70.7% Ni, 80.9% Cu and 73.0% Co into two separate concentrates.

• A further four private properties acquired at Gonneville, taking the total Chalice-owned freehold land to approximately 17km[2] (covering all known mineralisation).

• The Gonneville discovery is being progressed rapidly through resource definition and into preliminary economic studies, in parallel with initial exploration activities across the largely unexplored >2,000km[2] project area.

• Initial soil sampling and first-pass ground EM surveys completed at the ~6.5km long Hartog Target ; results highlight the potential for the Gonneville discovery to expand considerably along strike to the north .

• Initial environmental surveys are underway in preparation for initial drilling at Hartog, targeted in Q3 2021, subject to access approvals.

• A new interactive 3D model of the Project can be viewed here:

https://inventum3d.com/c/chalicemining/julimar

Pyramid Hill Gold Project, Victoria (100%-owned)

• 11 hole, 3,840m Phase 2 diamond drill program completed at Karri – further high-grade gold zones intersected in wide-spaced holes over >2.5km of strike length.

• Two new regional targets defined in the ongoing ~30,000m reconnaissance AC drill program at the Muckleford and Mt William areas.

Barrabarra Nickel-Copper-PGE Project, Western Australia (100%-owned)

• New ~4km x ~0.6km coincident Cu-Cr +/- Ni-Pd soil anomaly identified, associated with a 4km eastwest trending aeromagnetic feature – initial ground EM survey planned in Q2 2021.

Corporate

• Highly regarded global mining executive Stephen McIntosh appointed as Non-Executive Director.

• Executive team strengthened with appointment of General Manager – Environment and Community and Study Manager – Julimar Project.

• Chalice remains fully funded with ~$121 million in cash as at 31 March 2021.

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Registered Office

ABN 47 116 648 956

Level 2, 1292 Hay Street West Perth, Western Australia GPO Box 2890, Perth WA 6001

info@chalicemining.com @chalicemining www.chalicemining.com chalice-mining

T: +61 8 9322 3960 F: +61 8 9322 5800

1. EXPLORATION AND DEVELOPMENT ACTIVITIES

1.1 Julimar Nickel-Copper-PGE Project, WA

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

Chalice interpreted the possible presence of a mafic-ultramafic layered intrusive complex at Julimar based on high resolution regional magnetics. The discovered Julimar Complex is interpreted to be ~26km long and is confirmed to be highly prospective for orthomagmatic nickel, copper and platinum group elements (PGE). Prior to Chalice, the area had never been explored for these metals.

An initial RC drill program commenced in Q1 2020 on private farmland and resulted in the discovery of high-grade PGE-nickel-copper-cobalt+/-Au mineralisation at the newly named Gonneville Intrusion.

Drilling to date at Gonneville has established that the ~1.8km x >0.9km Intrusion hosts at least eleven wide zones of high-grade PGE-Ni-Cu-Co+/-Au in fresh rock, a substantial PGE-rich oxide zone, as well as widespread zones of PGE-dominant mineralisation associated with disseminated sulphides. The significant discovery has established the new West Yilgarn Ni-Cu-PGE province in Western Australia.

Overview of activities

Seven rigs (three Reverse Circulation (“RC”) and four diamond) are currently drilling at the Julimar Project to test the extent of the mineralised system at the Gonneville Intrusion and to define a maiden Mineral Resource Estimate.

Reconnaissance soil sampling, Moving Loop EM (MLEM), ground gravity and environmental surveys are continuing in the Julimar State Forest to the north of the Gonneville discovery, with initial drilling targeted for Q3 2021, subject to access approvals.

Recent land purchases, which now cover all the known mineralisation within the Gonneville Intrusive, means the resource drill-out can proceed without access constraints.

The following activities were completed during the quarter:

• 76 RC holes for 18,800m – step-out drilling continued on an initial 80m x 40m spaced grid over the northern portion of Gonneville Intrusion and infill drilling continued on a nominal 40m x 40m spacing over the high-grade G1-G11 zones.

• 34 diamond holes for 8,700m – step-out drilling continued testing the extent of the high-grade zones along strike and down-dip and infill drilling commenced on selected locations on a nominal 40m x 40m spacing.

• Drilling assay results were reported for 23 diamond holes (JD017-036, 038-040) and 57 RC holes (JRC135-191), while assay results currently remain pending for a further 97 completed drill holes.

• Phase 2 metallurgical testwork – variability testwork on 200kg of composite metallurgical samples from various mineralised zones within the Gonneville Intrusion continued. Oxidative leaching testwork also continued on oxide mineralisation samples.

• First-pass reconnaissance soil sampling and moving loop EM (MLEM) surveys were completed at the Hartog Target, immediately north of Gonneville, while surveys continue over the Baudin and Jansz targets further to the north. This follows approval of Chalice’s Stage 1 Conservation Management Plan (CMP) to conduct non-ground disturbing exploration within the Julimar State Forest.

Gonneville drilling results

Drilling during the quarter identified four new, high-grade PGE-Ni-Cu-Co+/-Au zones (defined as >1.0g/t Pd cut-off grade) and continued to extend the eleven currently defined high-grade zones. Drilling also

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continued to intersect broad zones of PGE mineralisation associated with disseminated sulphides, which are widespread throughout the ~1.8km x >0.9km Gonneville Intrusion.

The dimensions and status of the high-grade zones are shown below in Table 1 .

Table 1. Maximum dimensions and status of high-grade zones at Gonneville.

Zone	Previous strike extent	Previous dip-extent	Current strike extent	Current dip-extent	Status
G1	450m	390m	450m	390m	Merges with G2 at depth
G2	600m	400m	690m	490m	Open to the north and down-dip
G3	465m	210m	465m	280m	Open to the north
G4	800m	430m	1250m	600m	Open to the north and down-dip
G5	450m	200m	650m	270m	Open to the north
G6	300m	450m	875m	450m	Open to the north and down-dip
G7	350m	500m	500m	350m	Closed off
G8	N/A	N/A	350m	250m	Open to the north and down-dip
G9	N/A	N/A	500m	250m	Open along strike and down-dip
G10	N/A	N/A	400m	300m	Open to the north and down-dip
G11	N/A	N/A	**1200m **	**300m **	Open tothenorthand down-dip

Significant new high-grade drill intersections (>1g/t Pd cut-off grade) during the quarter included:

• 39m @ 3.8g/t Pd , 0.6g/t Pt, 0.3% Ni, 0.2% Cu, 0.02% Co from 290m (JD023, G1 & G2), incl: o 2.0m @ 14.9g/t Pd , 0.02g/t Pt, 0.04% Ni, 0.2% Cu, 0.04% Co, and

• 4.5m @ 7.1g/t Pd , 1.4g/t Pt , 0.9% Ni, 0.5% Cu , 0.06% Co .

• 34.5m @ 2.8g/t Pd , 0.7g/t Pt, 0.4g/t Au, 0.2% Ni, 1.9% Cu , 0.02% Co from 139.8m (JD019, G4);

• 11m @ 13.0g/t Pd , 1.3g/t Pt , 0.3g/t Au, 0.1% Ni, 0.1% Cu, 0.01% Co from 78m (JRC121, G11), incl:

• 1m @ 118g/t Pd, 8.0g/t Pt, 2.7g/t Au , 0.2% Ni, 0.1% Cu.

• 13.4m @ 6.3g/t Pd , 1.1g/t Pt, 1.3% Ni, 0.7% Cu, 0.07% Co from 405.7m (JD032, G1 & G2);

• 45m @ 1.7g/t Pd , 0.6g/t Pt, 0.2g/t Au, 0.1% Ni, 0.1% Cu, 0.01% Co from 216m (JD035, G4);

• 20m @ 2.9g/t Pd, 1.5g/t Pt, 0.8g/t Au , 0.1% Ni, 0.8% Cu , 0.01% Co from 97m (JRC121, G11), incl:

• 11m @ 4.0g/t Pd, 2.7g/t Pt, 1.3g/t Au , 0.2% Ni, 1.4% Cu .

• 18m @ 4.6g/t Pd , 0.5g/t Pt, 0.4% Ni, 0.1% Cu, 0.03% Co from 121m (JRC112, G10);

• 13m @ 4.7g/t Pd , 1.0g/t Pt , 0.4g/t Au, 0.2% Ni, 2.2% Cu , 0.02% Co from 144m (JRC163, G11);

• 17m @ 4.1g/t Pd , 0.8g/t Pt, 0.4g/t Au, 0.5% Ni , 0.3% Cu, 0.03% Co from 91m (JRC123, G11);

• 18m @ 3.4g/t Pd, 1.1g/t Pt , 0.1g/t Au, 0.3% Ni, 0.4% Cu, 0.15% Co from 5m (JRC087, Oxide);

• 10.7m @ 5.0g/t Pd , 0.7g/t Pt, 0.9% Ni, 0.5% Cu , 0.04% Co from 50m (JD026, G1);

• 24m @ 2.1g/t Pd , 0.5g/t Pt, 0.3g/t Au, 0.2% Ni, 0.1% Cu, 0.01% Co from 134m (JRC119, G4);

• 12m @ 2.6g/t Pd , 1.4g/t Pt, 0.8g/t Au , 0.2% Ni, 0.9% Cu , 0.01% Co from 138m (JD035, G11);

• 29m @ 1.4g/t Pd , 0.5g/t Pt, 0.1g/t Au, 0.2% Ni, 0.1% Cu, 0.02% Co from 115m (JD039, G11);

• 23m @ 1.7g/t Pd , 0.4g/t Pt, 0.2g/t Au, 0.2% Ni, 0.2% Cu, 0.01% Co from 177m (JD039, G4);

• 17m @ 1.5g/t Pd , 0.2g/t Pt, 0.3g/t Au, 0.2% Ni, 0.4% Cu, 0.02% Co from 207m (JD039, G4); and

• 5m @ 2.5g/t Pd , 0.9g/t Pt, 0.1g/t Au, 0.2% Ni, 0.2% Cu, 0.02% Co from 67m (JRC148, new zone).

The new G11 zone is located towards the eastern margin of the intrusion and contains a similar metal assemblage to the G4 zone, often containing high copper and gold grades and relatively low nickel grades.

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These mineralised zones are largely hosted in pyroxenite (amphibole-rich) in an area where the footwall contact of the intrusion is flattening against the underlying footwall sediments. Pyroxenite has also been intersected at the north-west and northern end of the intrusion and may represent an internal transition from olivine-rich to olivine-poor geology. Sulphide mineralisation continues to be intersected in both pyroxenite and serpentinite host units.

The G4 and G11 zones remain open up-dip and along strike to the north. Chalice has now secured the acquisition of all private properties at Gonneville and, as such, drilling to test the extent of mineralisation to the north-east will commence shortly.

Significant shallow, high-grade Pd-Pt-Au mineralisation also continues to be intersected in the oxide zone above the high-grade G1-G11 zones.

Given the growth in the mineralised footprint, the quantum of resource drilling required to define the discovery is expected to increase and the maiden Mineral Resource Estimate is now anticipated in late Q3 2021.

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Figure 1. Gonneville Intrusion Plan View – new key drill results and high-grade G1-G11 zone outlines over interpreted geology at 160m RL (~80m below surface).

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Figure 2 . Gonneville 3D View (looking North-West) – high-grade G1-G11 zones and new drill intersections.

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Figure 3. Gonneville 3D View (looking North-North-East) – high-grade G1-G11 zones and new drill intersections.

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Metallurgical testwork results

Promising results were received from an ongoing Phase 2 metallurgical testwork program at Julimar where locked-cycle sulphide flotation tests on high-grade G1-G2 zone composites at 53µm grind size produced two separate, commercially attractive concentrates, with aggregate metal recoveries of 86.3% Pd, 73.9% Pt, 80.9% Cu, 70.7% Ni and 73.0% Co:

• A Cu-PGE Concentrate grading 24.7% Cu, 173.0g/t Pd, 22.0g/t Pt, with metal recoveries of 80.9% Cu, 60.2% Pd, 37.6% Pt; and,

• A Ni-PGE Concentrate grading 12.2% Ni, 24.1g/t Pd, 6.9g/t Pt, 0.98% Co, with metal recoveries of 70.7% Ni, 26.1% Pd, 36.3% Pt, 73.0% Co and an Fe:MgO ratio of ~8:1.

Locked-cycle results indicate that good concentrate grades and metal recoveries are likely using a conventional sequential flotation flowsheet with further work underway to optimise the process.

Initial sulphide flotation tests completed on a further six composites (JSG3, JSG5, JSG6 and yearly composites, JSMC1-4) showed promising results, although further locked-cycle tests are underway to confirm these preliminary results.

Leach tests completed on oxide zone composite JOS1 (head grade 2.02g/t Pd, 0.59g/t Au) at 26µm grind size achieved 76% Pd and 95% Au extraction into solution. Additional variability testwork and optimisation of grind size, temperature and reagent use is ongoing.

Private property acquisitions

During the quarter, Chalice acquired four additional key private properties at the Julimar Project. Three properties are subject to settlement, which is anticipated in late May 2021.

The four properties cover a combined area of ~723 hectares. Total consideration comprised $11.25 million in cash and 1,033,294 fully paid ordinary Chalice shares.

With these most recent acquisitions, Chalice has acquired a combined total of ~1,668 hectares (~17km[2] ) of private land at the southern end of the Julimar Project, covering all of the current known mineralisation at the Gonneville Intrusion.

Reconnaissance exploration results

The MLEM survey completed over the ~6.5km long Hartog Target defined a cluster of 29 low to moderate conductance, mid to late-time bedrock EM conductors, interpreted to be potentially significant PGE-NiCu targets, of similar aerial extent and range of conductance to those at the Gonneville discovery immediately to the south (Figure 4).

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Figure 4 . Hartog-Gonneville Plan View – preliminary new MLEM conductors, nickel and copper soil geochemistry results over Airborne EM (flown in September 2020).

Surface soil sampling at Hartog was also completed as a first-pass screening technique to assess and prioritise MLEM conductors. This sampling outlined extensive areas of moderately anomalous nickel, copper and/or palladium, both coincident with and proximal to the new MLEM conductors, which are similar to the results generated over Gonneville prior to its discovery.

Reconnaissance results for the Baudin and Jansz targets remain pending.

Forward plan

Chalice is continuing the resource definition drill program and early studies at the ~1.8km x >0.9km Gonneville Intrusion in parallel with initial exploration activities within the Julimar State Forest to the north. Ongoing and planned activities at Julimar include:

• Resource definition drilling (Gonneville) – The RC/diamond drill program aims to define Mineral Resources predominantly in the Indicated category to a nominal ~200m below surface (deeper in high-grade zones), which is expected to be achieved with a 40m spaced drill pattern. Areas deeper than ~200m below surface are being drilled on a wider spaced pattern, as determined by preliminary pit-shell modelling, with the Mineral Resources expected to be reported predominantly in the Inferred category. Due to the continued growth of mineralised zones and the required drilling, the Company anticipates its maiden Mineral Resource Estimate will be released in late Q3 2021.

• Metallurgical testwork (Gonneville) – variability flotation testwork on sulphide zone composites and leach testwork on oxide zone composites continues. New high-grade and disseminated sulphide composites have been compiled for the next phase of testwork.

• Mining studies (Gonneville) – hydrology, hydrogeology, waste rock characterisation and initial infrastructure studies have commenced. The Company has appointed a Study Manager for the project and anticipates that a scoping study will be completed in early 2022.

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• Marketing studies (Gonneville) – preliminary discussions with various potential offtake partners have commenced to determine indicative commercial terms for potential intermediate concentrate products.

• Geochemistry and Geochronology – the Company has engaged the Geological Survey of WA (GSWA) and a specialist consultant to conduct initial geochemical analysis and metallogenesis studies. This work aims to improve Chalice’s geological and mineralogical understanding of the discovery and enhance targeting capability as the Company searches for similar discoveries across its 8,000km[2] land holding in the West Yilgarn Ni-Cu-PGE Province.

• Reconnaissance exploration and environmental surveys within the Julimar State Forest – Soil sampling continues at the Jansz Target and ground gravity surveying is underway within the Julimar State Forest. Flora and Fauna surveys are underway as part of planning for additional exploration activities as well as providing baseline information for future studies.

1.2 Pyramid Hill Gold Project, Victoria

The 100%-owned Pyramid Hill Gold Project was staked in late 2017 and now covers an area of >5,000km[2] in the Bendigo region of Victoria. The Project comprises three key districts within the Murray Basin covered North Bendigo Zone: Muckleford, Mt William and Percydale.

Chalice’s central Muckleford area extends to the north-west of the high-grade historical >22Moz Bendigo Goldfield. The Mt William area extends to the north-east of one of the world’s highest-grade producing gold mines, the >9Moz Fosterville Gold Mine owned by Kirkland Lake Gold (NYSE / TSX: KL | ASX: KLA).

Chalice is continuing its systematic approach to gold exploration under cover in Central Victoria, with the current focus on advancing the Karri, Ironbark North and Ironbark South Prospects as well as first-pass reconnaissance aircore (AC) drilling in the Muckleford and Mt William areas.

Karri Prospect

An 11 hole, 3,840m Phase 2 diamond drill program was completed at the Karri Prospect beneath the >4km gold trend identified by previous aircore drilling. Several highly encouraging high-grade gold zones were intersected on wide-spaced drilling (500-1,000m spacing). These zones are associated with two tightly folded anticlines on the eastern part of the >4km long gold anomaly defined by previous AC drilling.

In addition, anomalous gold and/or pathfinder (arsenic, antimony) zones have continued to be intersected over a >2.5km strike length. The gold and pathfinder mineralised zones are associated with zones of quartz veining and sulphide accumulation within tightly folded Castlemaine Group stratigraphy.

These results further support the Company’s view that the Prospect could host a significant primary gold system, and additional diamond drilling is expected to commence in late Q3 2021.

Reconnaissance AC drilling

A total of 204 AC holes for 20,275m were completed during the quarter within the southern part of the Muckleford and Mt William areas. At Muckleford, several encouraging anomalous Au +/- As-Sb zones were intersected on wide-spaced (3-5km) lines at the newly defined ~5km long Wandoo Target, located ~17km west of the >22Moz Bendigo Goldfield. The zones are located within weathered Castlemaine Sediments and the results are similar to those seen in initial AC drilling at the Karri Prospect.

~15km to the north-west of the Wandoo Target, several strongly anomalous transported (alluvial) gold zones were intersected on wide-spaced (3-10km) lines over ~20km of strike. Additional infill and extensional AC drilling is planned to follow up the transported gold intercepts, in order to refine the footprint and tenor of gold anomalism observed to date in both areas.

All assays are pending for holes completed at Mt William. AC drilling will continue into the next quarter (for a total of ~30,000m) at the Ironbark North and Ironbark South prospects to further refine the targets for possible follow-up diamond drilling.

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1.3 Other Operated Projects

Barrabarra Nickel-Copper-PGE Project, WA

The first on-ground exploration at the Barrabarra Project, ~150km east of Geraldton in WA, commenced during the quarter, with a maiden auger soil geochemical program over a cluster of prominent aeromagnetic trends, interpreted as potential mafic-ultramafic intrusions within a greenstone belt succession.

The auger program has defined a ~4km x ~0.6km coincident Cu-Cr +/- Ni-Pd anomaly, the Recherche Target, associated with a ~4km east-west trending aeromagnetic anomaly. A maiden Moving Loop Electromagnetic (MLEM) survey is planned on the target in May.

South West Nickel-Copper-PGE Project, WA

A ~42 line km MLEM survey commenced in late-April over selected airborne EM targets at the South West Project. The survey is expected to be completed in 4-6 weeks, subject to weather constraints. Any EM anomalies identified will be then tested with soil geochemistry and infill MLEM to define potential drill-ready targets.

Viking Gold Project, WA

A key exploration licence (E63/1963) at the Viking Project was granted during the quarter. A Conservation Management Plan (CMP) for drilling activities has been approved and a ~3,000m RC drill program is anticipated to commence in the June quarter subject to permit approvals.

Other Projects

No exploration activity was undertaken at the Hawkstone, Mt Jackson, Auralia or Flinders River projects during the quarter. These projects are early-stage opportunities where low-cost prospect generation can contribute to a diversified pipeline of future projects in the Chalice portfolio. The Company is continuing to seek joint venture partners for certain projects.

1.4 Non-Operated Joint Venture Projects

Nulla South Gold Project, WA (Ramelius earning 75%)

Operator Ramelius Resources Ltd (“Ramelius”, ASX: RMS) reported that reconnaissance AC drilling was completed over several conceptual geological/geophysical and soil geochemical targets during the quarter. A total of 113 holes for 6,328m was drilled. No significant assay results have been reported and no further exploration is currently planned.

Gibb Rock Gold Project, WA (Ramelius earning 75%)

Operator Ramelius reported that a total of 22 AC drill holes (BWAC001-0022) were completed for 1,726m over the Brahma West target covering potential strike extensions to the Brahma mineralisation located on adjacent Ramelius tenure. No significant assay results have been reported and no further exploration is currently planned.

Warrego North Copper-Gold Project, NT (NT Bullion Pty Ltd earning 75%)

No exploration was completed during the quarter.

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2. CORPORATE

2.1 Board and Executive Appointments

Chalice has appointed highly experienced global mining executive Stephen McIntosh as a Non-Executive Director. Mr McIntosh is an internationally recognised figure in the mining industry, with a global career spanning more than 30 years at Rio Tinto.

He has been involved in the discovery, evaluation and/or development of multiple major projects across a diverse range of commodities. Until recently, Mr McIntosh was a member of the Executive Committee for Rio Tinto and held the position of Group Executive, Growth & Innovation and Health, Safety, Environment & Security.

In addition, Chalice announced the appointment of Dr Soolim (‘Soo’) Carney as General Manager – Environment and Community. Until recently, Dr Carney was part of the senior leadership team at Alcoa, where she held the role of Regional Environment Manager for Alcoa’s mining, refining and smelting operations in Australia, providing leadership on environmental standards, risk management and performance.

The Company has also recently appointed Michael Elias as Study Manager – Julimar Project. Mr Elias brings over 30 years of experience in study management, project development, engineering and management consulting.

The appointments reflect Chalice’s continued focus on strengthening the depth and capability of its Board and Executive team as it rapidly advances the Julimar Project.

2.2 Cash and Investments

As of 31 March 2021, Chalice had a cash balance of ~$121 million and $12.2 million in listed investments, which include shares held in O3 Mining Inc. (TSX-V: OIII) and Caspin Resources Ltd (ASX: CPN).

2.3 Appendix 5B - Quarterly Cash flow

During the quarter, operating cashflows included expenditures of $7.0 million on exploration activities (including ~$5.8 million at the Julimar Project) and $0.8 million on corporate and administration (net of interest, government grants and tax incentives).

Investing activities included cash consideration paid of $5.4 million (including stamp duty) for the acquisition of one private property at the Julimar Project and the acquisition of an additional property for field accommodation purposes.

Financing activities included receipt of $15 million (before costs) from a Share Purchase Plan in January 2021.

Further details are available in the attached Appendix 5B.

2.4 Appendix 5B – Payments to Related Parties of the Entity and their Associates

Payments of $193k reported in Item 6.1 of the attached Appendix 5B, relates to salaries and fees (including superannuation paid to Directors).

2.5 Tenement Holdings

In accordance with ASX Listing Rule 5.3, please refer to Appendix 1 for a listing of all tenement holdings.

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Authorised for release on behalf of the Company by:

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Alex Dorsch Managing Director

For further information, please visit www.chalicemining.com to view our latest corporate presentation, or contact:

Corporate Enquiries Media Enquiries Alex Dorsch Nicholas Read Managing Director Principal and Managing Director Chalice Mining Limited Read Corporate Investor Relations +61 8 9322 3960 +61 8 9388 1474 info@chalicemining.com info@readcorporate.com.au

Follow our communications: LinkedIn: https://www.linkedin.com/company/chalice-mining Twitter: https://twitter.com/ChaliceMining

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Competent Persons and Qualifying Persons Statement

The information in this report that relates to Exploration Results is based on and fairly represents information and supporting documentation prepared by or compiled by Dr. Kevin Frost BSc (Hons), PhD and Mr Bruce Kendall BSc (Hons), Competent Persons, who are members of the Australian Institute of Geoscientists. Dr. Frost and Mr Kendall are both full-time employees of the Company and have sufficient experience that is relevant to the activity being undertaken 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 are a Qualified Person under National Instrument 43-101 – ‘Standards of Disclosure for Mineral Projects’. The Qualified Persons have verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release. Dr. Frost and Mr Kendall consent to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.

The Information in this report and the interactive 3D Model that relates to exploration results for the Julimar Project is extracted from the following ASX announcements:

• “High-grade nickel-copper-palladium sulphide intersected at Julimar Project in WA”, 23 March 2020

• “Preliminary results from second target at Julimar Project”, 24 March 2020

• “Significant nickel-palladium discovery confirmed at Julimar”, 15 April 2020

• “Second diamond hole intersects discovery zone at Julimar”, 20 April 2020

• “Exciting visual results from deep diamond drill hole at Julimar”, 5 May 2020

• “Large-scale PGE system further expanded at Julimar”, 11 May 2020

• “High-grade Ni-Cu-PGEs confirmed in discovery zone at Julimar”, 25 May 2020

• “Extension of wide, high-grade PGE-Ni-Cu matrix zone at Julimar”, 15 June 2020

• “Chalice discovers new high-grade PGE-Cu-Au zone at Julimar”, 9 July 2020

• “Significant extension of high-grade PGE-Ni-Cu-Co zones at Julimar”, 17 August 2020

• “Positive preliminary metallurgical results at Julimar”, 1 September 2020

• "Major new 6.5km-long EM anomaly identified at Julimar", 22 September 2020

• “Significant new PGE-copper-gold horizon defined at Julimar”, 6 October 2020

• “Chalice secures access to major new targets at Julimar”, 4 January 2021

• “Four new high-grade zones defined as Julimar continues to grow”, 27 January 2021

• “More Positive Results from Metallurgical Testwork at Julimar” 16 February 2021

• “New EM Conductors and Nickel-Copper Soil Anomalies at Hartog” 25 March 2021

• “Resource Drilling Delivers Growth at Julimar”, 22 April 2021

The above announcements are 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 relevant original market announcements. The Company confirms that the form and context in which the Competent Person and Qualified Person’s findings are presented have not been materially modified from the relevant original market announcements.

Forward Looking Statements

This report may contain forward-looking information, including 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 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 Company management’s expectations or beliefs regarding future events and include, but are not limited to, the Company’s strategy, the fair value of investments ultimately realised, the estimation of mineral reserves and mineral resources, the realisation of mineral resource estimates, estimation of metallurgical recoveries, the forecast timing of the estimation of mineral resources, the likelihood of exploration success at the Company’s projects, the prospectivity of the Company’s exploration projects, the existence of additional EM anomalies within the project, the forecast timing of the completion of the Julimar Scoping Study, the timing of future exploration activities on the Company’s exploration projects, planned expenditures and budgets and the execution thereof, the timing and availability of drill results, potential sites for additional drilling, 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.

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Chalice Mining Limited ABN 47 116 648 956

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In certain cases, forward-looking statements can be identified by the use of words such as “aims”, “anticipates”, “continue”, “could”, “expected”, “interpreted”, “likely”, “potential”, “highly”, “plan”, “prospective”, “promising”, “targeted”, “to expand”, “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 forwardlooking statements.

Such factors may include, among others, risks related to actual results of current or planned exploration activities; assay results of soil samples; whether geophysical and geochemical anomalies are related to economic mineralisation or some other feature; obtaining appropriate access to undertake additional ground disturbing exploration work on EM anomalies located in the Julimar State Forrest; the results from testing EM anomalies; results of planned metallurgical test work Including results from other zones not tested yet, scaling up to commercial operations; changes in project parameters as plans continue to be refined; changes in exploration programs based upon the results of exploration, future prices of mineral resources; 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; movements in the share price of investments and the timing and proceeds realised on future disposals of investments, the impact of the COVID 19 epidemic 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, ASX at asx.com.au and OTC Markets at otcmarkets.com. The Company also refers to the "Key Risks" section of its investor presentation released to the ASX on 1 December 2020.

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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Chalice Mining Limited ABN 47 116 648 956

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Appendix 1. Portfolio and Tenement Holdings

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Figure 4 . Chalice’s project locations in Australia, non-operated JV interests, investments and royalties.

The following information is provided in accordance with ASX Listing Rule 5.3 for the quarter ended 31 March 2021.

1. Listing of tenements held

Location	Project	Tenement No.	Registered Holder	Nature of interest
Western Australia	Hawkstone	E04/1169	Waterford BayPtyLtd	100% of the hard-rock mineral rights
		E04/2405	Waterford BayPtyLtd	100% of the hard-rock mineral rights
		E04/2563	Kimberley Alluvials Pty Ltd	100% of the hard-rock mineral rights
		E04/2299	Strategic Metals PtyLtd	0% - Farm-in agreement, right to earn up to 85% interest
		E04/2325	Strategic Metals PtyLtd
	Gibb Rock	E70/4869	CGM (WA) Pty Ltd	95% - Farm-out agreement, Ramelius Resources Ltd has the right to earnupto 75%interest
		E70/5194	CGM (WA) Pty Ltd	100% - Farm-out agreement, Ramelius Resources Ltd has the right to earnupto 75%interest
	Nulla South	E77/2353 to E77/2354	CGM (WA) Pty Ltd	95% - Farm-out agreement, Ramelius Resources Ltd has the right to earnupto 75%interest
	Julimar	E70/5118 to E70/5119	CGM (WA) Pty Ltd	100%
	Julimar (regional)	E70/5350	CGM(WA)PtyLtd	100%
		E70/5358 to E70/5359	CGM (WA) Pty Ltd	100%
		E70/5361	CGM(WA)PtyLtd	100%
		E70/5367	CGM(WA)PtyLtd	100%
		E70/5369	CGM(WA)PtyLtd	100%
		E70/5373	CGM (WA) Pty Ltd	100%

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Chalice Mining Limited ABN 47 116 648 956

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	Location	Project	Tenement No.	Registered Holder	Nature of interest
		Auralia	E69/3636 to E69/3637	CGM (WA) Pty Ltd	100%
			E69/3700	CGM(WA)PtyLtd	100%
		Barrabarra	E70/5263 to E70/5264	CGM (WA) Pty Ltd	100%
			E70/5355 to E70/5356	CGM (WA) Pty Ltd	100%
			E70/5535 to E70/5536	CGM (WA) Pty Ltd	100%
			E70/5532	CGM(WA)PtyLtd	100%
			E70/5666 to E70/5667	CGM (WA) Pty Ltd	100%
			E70/5695	CGM(WA)PtyLtd	100%
			E70/5550 to E70/5551	CGM (WA) Pty Ltd	100%
		Viking	E63/1963	Metal Hawk Ltd	0% - Earn-in agreement, right to earnupto 70%interest
		Mt Jackson	E77/2577	CGM (WA) Pty Ltd	100%
		South West	E70/5086	Nebula PtyLtd	100%
			E70/4837	Venture Lithium Pty Ltd	0% - Earn-in agreement, right to earnupto 70%interest
			E70/5067	Venture Lithium Pty Ltd	0% - Earn-in agreement, right to earnupto 70%interest
			E70/5421	Venture Lithium Pty Ltd	0% - Earn-in agreement, right to earn up to 70% interest
	Victoria	Pyramid Hill	EL006661	CGM(WA)PtyLtd	100%
			EL006737 to EL006738	CGM (WA) Pty Ltd	100%
			EL006669	CGM(WA)PtyLtd	100%
			EL006864	CGM(WA)PtyLtd	100%
			EL006898	CGM(WA)PtyLtd	100%
			EL006901	CGM(WA)PtyLtd	100%
			EL006960	CGM(WA)PtyLtd	100%
			EL007040	CGM(WA)PtyLtd	100%
			EL007120 to EL007121	CGM (WA) Pty Ltd	100%
	Northern Territory	Warrego North	EL23764	CGM (WA) Pty Ltd (51%) & Meteoric Resources NL (49%)	Earn-in agreement, right to earn up to 70% interest
			EL31608	CGM (WA) Pty Ltd	100% - Farm-out agreement, TC Resources NT Pty Ltd has the right to earnupto 75%interest
			EL31610	CGM (WA) Pty Ltd	100% - Farm-out agreement, TC Resources NT Pty Ltd has the right to earn up to 75% interest
	Queensland	Flinders River	EPM26861	CGM Lithium PtyLtd	100%
			EPM26866	CGM Lithium PtyLtd	100%

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Chalice Mining Limited ABN 47 116 648 956

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2. Listing of tenements acquired (directly or beneficially) during the quarter

Location	Project	Tenement No.	Registered Holder	Interest at end of Quarter
Western Australia	Barrabarra	E70/5532	CGM(WA)PtyLtd	100%
		E70/5536	CGM(WA)PtyLtd	100%
		E70/5666 to E70/5667	CGM (WA) Pty Ltd	100%
		E70/5695	CGM (WA) Pty Ltd	100%
	Viking	E63/1963	Metal Hawk Ltd	0% - Earn-in agreement, right to earnupto 70%interest
Victoria	Pyramid Hill	EL007040	CGM(WA)PtyLtd	100%

3. Tenements relinquished, reduced or lapsed (directly or beneficially) during the quarter

Nil

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Chalice Mining Limited ABN 47 116 648 956

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Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity Chalice Mining Limited ABN Quarter ended (“current quarter”) 47 116 648 956 31 March 2021

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs(1) (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes (paid)/received 1.7 Government grants and tax incentives 1.8 Other (provide details if material) - Net livestock movement - GST (paid)/received - Other 1.9 Net cash from / (used in) operating activities	- (6,995) - - (427) (430) - 34 (6) 127 100 97 262 (166)	77 (19,852) - - (2,135) (1,035) - 140 (17) 127 438 (463) (9) -
	(7,404)	(22,729)
(1)Year to date staff costs includes cash paid in lieu of the exercise of long term incentives of ~$0.5 million and $0.3 million of payroll tax incurred in relation to the exercise of employee and director performance rights.
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) investments	- - (46) - -	- - (466) - (1,202)

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
(f) other non-current assets(1) 2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	(5,387) - - - - - - - -	(12,272) - - - 102 - - - -
	(5,433)	(13,838)
(1)Represents acquisition of private properties at the Julimar project.
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	15,000 - 680 (59) - - - - -	115,000 - 984 (3,642) - - - - -
	15,621	112,342
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	118,706 (7,404) (5,433) 15,621	45,694 (22,729) (13,838) 112,342

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period		(27)	(6)
		121,463	121,463
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts		Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)		1,376 120,087 - -	607 118,099 - -
		121,463	118,706
6. Payments to related parties of the entity and their associates			Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 193 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.			193
			-
7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities - - Credit standby arrangements - - Other (please specify) - - Total financing facilities - - Unused financing facilities available at quarter end Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-
		-	-

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (7,404) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - Total relevant outgoings (item 8.1 + item 8.2) (7,404) Cash and cash equivalents at quarter end (item 4.6) 121,463 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 121,463 Estimated quarters of funding available (item 8.6 divided by item 8.3) 16.4 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(7,404) - (7,404) 121,463 -
		121,463
	Answer: Not applicable
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: Not applicable
	8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer: Not applicable
	Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: .................30 April 2021.................................................................

Authorised by: ....................By the Board............................................................... (Name of body or officer authorising release – see note 4)

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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