CHALICE MINING LIMITED — Investor Presentation 2011

Apr 19, 2011

Eritrea s ex’ N t Gold Miner

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Exploration Overview April 2011 www.chalicegold.com

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Disclaimer and Competent Persons Statement

• This presentation may contain value references and "forward looking statements“ which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results.

• This presentation does not include all available Information on Chalice Gold Mines Limited and should not be used in isolation as a guide to investing in the Company. Any potential investor should also refer to Chalice Gold Mines Limited Annual Reports and to ASX releases and take independent professional advice before considering investing in the Company.

For further information about Chalice Gold Mines Limited, visit the website at www.chalicegold.com

The information in this report that relates to Exploration Results is based on information compiled by Dr Doug Jones, a full ‐ time employee and Director of Chalice Gold Mines Limited , who is a Member of the Australasian Institute of Mining and Metallurgy and is a Chartered Professional Geologist. Dr Jones has sufficient experience in the field of activity being reported to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and consents to the release of information in the form and context in which it appears here.

The Mineral Resource estimate was prepared by Mr. John Tyrrell who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Tyrrell is a full time employee of AMC and has sufficient experience in gold resource estimation to act as Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code)'. Mr. Tyrrell consents to the inclusion of this i n ormat on n t f i i h e orm an f d context n w i hi c h t appears. i

The information in this statement of Ore Reserves is based on information compiled by Mr David Lee who is a Member of the Australasian Institute of Mining and Metallurgy and a full time employee of AMC. Mr Lee has sufficient relevant experience to be a Competent Person as defined in the JORC Code. Mr Lee consents to the inclusion of this information in the form and context in which it appears.

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Arabian‐Nubian Shield

Zara Project is located within southern Arabian‐Nubian Shield – an emerging gold & base metal province

Gold endowment +20Moz – numerous deposits and mines dating back to ancient times

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Minimal modern exploration New world‐class projects being developed:

14Moz Sukari Gold Mine (Egypt) – in production (Centamin)

Bisha Gold & Base Metal Mine (Eritrea), 1Moz gold, 750Mlbs copper, 1Blbs zinc, 9Moz silver – under construction (Nevsun)

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Chalice Tenements – Eritrea

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Geological Map of Eritrea

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ZARA
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Zara ‐ Regional Geological & Structural Setting

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Zara N
EL
Zara
Central
Zara S
Hurum EL
EL
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Geology of the Zara Project

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Regional Geological Map of Central Zara Area

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Regional Exploration Activities

Geological mapping to outline structural, lithological and stratigraphic framework of the properties and prospects

Successive surface geochemical sampling programs:

Stream sediment BLEG and follow‐up ‐80 mesh sampling Grid soil sampling

Rock chip/grab sampling of alteration zones and artisanal workings Helicopter assisted mapping and sampling

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Deep penetration 3D IP survey over Koka – Konate corridor Airborne magnetic and radiometric survey over Zara & Hurum Ground geophysical surveys over Jani VHMS prospect (Zara Sth) Drilling of satellite prospects (Konate) Planned VTEM, magnetic & radiometric survey over Mogoraib Nth

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Zara North Geology

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Zara North Geology

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Tight secondary folding in phyllite on the western limb of the regional anticline near the western boundary of the Zara North licence (view looking north).

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Zara Project BLEG Sampling Results (2010)

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BLEG orientation survey covering known gold‐mineralized central area confirmed the effectiveness of the method Sampling extended t o rema ni der of Zara tenement block

Significant (>5ppb) gold anomalism identified on all three Zara EL’s

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Zara North EL Follow‐up – Infill Drainage Sampling

Drainage BLEG sampling identified Zara North EL western drainage had most significant gold anomalies outside Koka‐Konate corridor Follow up ‐80# sampling confirmed BLEG anomalism over 10km strike length Anomalism focused along major regional shear zone Numerous artisanal workings identified along anomalous trend

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Regional Rock Chip/Grab Results

Initial follow‐up of BLEG and ‐ 80# anomalies by reconnaissance geological mapping and rock‐chip li samp ng

Best rock‐chip values coincide with drainage anomalies Significant gold values (to 32.8g/t) obtained from sampling of artisanal workings

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Soil Sampling – northern Zara Tenements

Soil sampling coverage progressively extended over known gold‐ anomalous trends on Zara Nth & Zara Central EL

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Koka
Konate
Fah
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Significant anomalism being defined over both known mineralized zones and newly identified prospects

Has identified numerous targets for trenching and/or drill follow‐up Results pending for large numbers of samples

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Zara North EL (Nth Section) Soil Sampling

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Zara North EL (Sth Section) Soil Sampling

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Zara Central Soil Sampling

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Artisanal Workings

Artisanal workings useful indicators of gold ‐ usually focused on narrow‐ vein, high‐grade mineralization

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Airborne Geophysical Survey

Covers Zara and Hurum group of tenements

12,750 line kilometres

‐ High quality magnetics, radiometrics & DTM

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Airborne Geophysics

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Exploration Potential – ‘Near Mine’

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Zara North
BLEG & ‐80# gold anomalies
Rock‐chips to 27.5 g/t Au
Tenement
Boundary
Koka
840,000 oz Resource
3D IP Survey
& Soil
Konate
Sampling
Intersections to
7m @ 22.3g/t
2 km
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Konate Drilling 2010

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Konate Drilling 2010

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Konate Drilling 2010
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Konate Drillhole Intersections

										Au_ppm 1.22 0.99	Au_ppm 1.22 0.99
	BHID From To Width Au_ppm ZARD005 53.00 54.00 1.00 0.77 ZARD005 60.00 63.00 3.00 0.71					BHID From To			Width	Au_ppm		BHID From To Width				Au_ppm
	ZARD005	53.00	54.00	1.00		ZARD179	62.00	64.00	2.00	1.22		ZARD187	119	123 4		0.92
	ZARD005	60.00	63.00	3.00		ZARD179	85.00	86.00	1.00	0.99		ZARD187	160	161	1	1.39
	i l nc	60 00 .	61 00 .	1 00 .	1 43 . 0.70 0.60 1.32 1.44	ZARD179	94.00	95.00	1.00	2.69		ZARD187	174	175	1	3 81 .
	incl	62.00	63.00	1.00		ZARD179	101.00	104.00	3.00	3.60		ZARD188	88	89	1	1.60
	ZARD006	65.00	66.50	1.50		ZARD179	111.00	112.00	1.00	11.38		ZARD188	97	98	1	4.53
	ZARD006	76.00	79.00	3.00								ZARD189	115	116	1	1.06
						ZARD181	32.00	35.00	3.00	0.85
	incl	76.00	77.00	1.00								ZARD189	120	121	1	9.81
						ZARD181	5100	5200	100	087
	incl	78.00	79.00	1.00 2.52 2.00 0.80 1.00 1.18 2.00 2.10 1.00 0.57			.	.	.	.		ZARD190	72	73	1	2.32
						ZARD181	86.00	89.00	3.00	1.16
	ZARD006	86.00	88.00	2.00								ZARD190	83	84	1	1.44
						incl	86.00	87.00	1.00	1.57
	ZARD007	54.00	55.00	1.00								ZARD191	193	194	1	1.43
						incl	88.00	89.00	1.00	1.44
	ZARD007	63.00	65.00									ZARD191	202	203	1	1.21
	ZARD007	71.00	72.00	1.00		ZARD181	94.00	95.00	1.00	0.88		ZARD191	205	206	1	1.08
	ZARD007	88.00	89.00	1.00		ZARD181	98.00	99.00	1.00	2.83		ZARD192	188	189	1	1.07
	ZARD007	113.00	114.00	1.00		ZARD182	71.00	72.00	1.00	6.87		ZARD193	45	50	1	0.70
	ZARD011	120.00	121.00			ZARD182	85.00	86.00	1.00	1.73		ZARD193	65	68 3		2.77
	ZARD013	89.00	91.00	2.00		ZARD182	89.00	90.00	1.00	5.43		ZARD193	85	86	1	1.00
	ZARD175	1300	1400	100
		.	.	.		ZARD184	52	59	5	30 36 .		ZARD193	91	92	1	3 69 .
	ZARD176	137.00	138.00	1.00		ZARD185	109	113	4	11.65		ZARD193	93	94	1	0.73
	ZARD177	120.00				ZARD185	119	139	20	1.39		ZARD193	109	111	2	0.54
	incl	121.00	122.00			Incl	119	122	3	3.28		ZARD193	139	140	1	0.69
	ZARD177	133.00										ZARD194	98	99	1	1.91
						Incl	124	125	1	1.24
	ZARD177	141 00 .	142 00 1 00 2 25 . . . 185.00 1.00 0.50			Incl	127	128	1	2.31		ZARD194	121	122	1	0 69 .
	ZARD177	184.00	185.00	1.00								ZARD194	124	127 3		7.42
	ZARD178	22.00	23.00	1.00 2.91		Incl	130	131	1	1.12		incl	124	125	1	20.62
	ZARD178	37.00	38.00	1.00		Incl	133	134	1	1.51		ZARD194	137	138	1	0.79
	ZARD178	44.00				Incl	135	136	1	4.65		ZARD194	140	141	1	2.85
	i l nc	44.00	48.00 4.00 2.61 50.00 1.00 2.93			Incl	138	139	1	6 25 .		ZARD194	144	146	2	1 95 .
	incl	49.00	50.00			ZARD185	152	153	1	1.66		incl	145	146	1	3.36

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Koka 3D IP – Near Mine Targets

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KOKA
W E
KOKA EAST
DEBRA KONATE
500m
IP Targets on Soil Gold Geochemistry
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Koka 3D IP – Priority Targets A & C

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E
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Planned Drilling of 3D IP Anomalies

Red traces – completed drilling

Blue traces – planned IP drilling

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Interpretation & Targeting in Progress
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Koka – Konate Long Section Looking West

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Hurum Exploration Licence

• Results pending 30

Hurum EL granted January 2011

Exploration completed to date:

Airborne Magnetics & Radiometrics

Stream sediment BLEG & ‐80# sampling

Reconnaissance & prospect scale geological mapping (Babtono Prospect) Soil sampling ‐ Babtono Rock chip sampling

Mogoraib North Exploration Licence

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Located ~10 km north of Nevsun’s Bisha VHMS Project Area 555 sq km Geological setting similar to Bisha Landsat spectral signatures similar to Bisha Airborne VTEM, magnetic and radiometric survey April/May 2011 ‐ ~4000 line kilometres 31

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Corporate Contact Details

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Tim Goyder Dr Doug Jones Dan Hrushewsky Executive Chairman Managing Director Senior Vice‐President Corporate Development

M: +61 418 942 908 M: +61 438 872 090 M: +1 647 864 2735 tgoyder@chalicegold.com djones@chalicegold.com dhrushewsky@chalicegold.com

Chalice Gold Mines Limited

Level 2, 1292 Hay Street, West Perth, Western Australia 6005 GPO Box 2890, Perth, Western Australia 6001

• T: +618 9322 3960 F: +618 9322 5800 E: info@chalicegold.com W: www.chalicegold.com

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