CHALICE MINING LIMITED — Investor Presentation 2011

Mar 7, 2011

Eritrea s ex’ N t Gold Miner

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Mine Africa March 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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Corporate Snapshot and Capability

ASX: CHN; TSX: CXN

Capital Structure

Share price A$0.60 Shares on issue 212 million Market capitalisation ~A$128 million Options on issue 12.6 million ‐ Debt Cash ~ A$5m Board Substantial Shareholders Tim Goyder Executive Chairman Franklin Resources 14.8% Dr Doug Jones Managing Director Directors & Management 12.8% Mike Griffiths Executive Director Lujeta Pty Ltd 7.4% Anthony Kiernan Non‐Executive Acorn Capital 4.7% Stephen Quin Non‐Executive Cit y ecur S iti es 3 . 0% 3

Analysts Covering the Chalice Story

Australia

Southern Cross Equities Peter Chapman E: pchapman@sceq.com.au T: +612 9231 0880 Paterson Securities Limited Simon Tonkin E: STonkin@psl.com.au T: +618 9225 2816 Argonaut Limited Troy Irvin E: troy@argonautlimited.com T: +618 9224 6871

North America

Haywood Securities Limited E: jmazumdar@haywood . com T: +1 (604) 697 7124

Stifel Nicolaus

• E: jwolfson@stifel.com T: +1 416 815 3080 E: hdouglas@stifel.com T: +1 416 815 3108

• E: dhove@stifel.com T: +1 416 815 1548

Europe

Ambrian Partners Limited

• E: adam.kiley@ambrian.com T: +44 (20) 7634 4777

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Project Snapshot

Chalice is a gold development company in the highly prospective and underexp orel d A rabian‐Nubian Shield of E r treai Chalice is developing the high‐grade, low cost Zara Project Feasibility completed, permitting underway Open pit ‐ 760,000oz Ore Reserve @ 5.1g/t Au Average annual production of 104,000oz over 7 year mine life US$338/oz cash operating costs

Significant exploration upside

2 1437 m k o t e d enemen t t s f gran 18,740 km[2] of regional tenement applications Major exploration program underway

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The Opportunity – by cash cost

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6 775 800
Cas h Costs Gra d e g ( / t )
5 700
660
4 577 600
514
492 492
3 500
463 461
2 355 400
338
1 300
0 200
Teranga Avocet Cluff Noble Adamus Centamin SEMAFO Perseus Banro Chalice
t)
C
e Grade (g/ ash Costs (
Reserv US$/oz)
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Comparative Market Valuation

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1,403
800
700
600
500
400
300
200
100
‐
Banro Chalice Centamin Perseus Noble Adamus Teranga Avocet Cluff SEMAFO
z)
serve (A$/o
EV / Re
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*Avocet multiples have been adjusted on a pre‐tax basis for the sale of its South East Asian assets.

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The Arabian‐Nubian Shield

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Centamin
Sukari Equinox
Jabal Sayid
15 year 10 year
500 koz pa Au 61 kt pa Cu
La Mancha
Hassai
Chalice
Zara
Nevsun Sunridge
6 year
Bisha Asmara
156 koz pa + VMS
7 year
104 koz pa Au
5 year
>10 year
Cu Zn Ag Au
Au, Ag, Cu, Zn
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The Zara Project is located within southern Arabian‐Nubian Shield Current resources +20Moz gold

Over 1,000 recorded ancient copper and gold mines Minimal modern exploration

World‐class projects now being developed

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Significant Ground Position

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Koka Gold Deposit

Indicated Resource of contained gold 840 , 000 Oz

Probable Reserve of contained gold 760,000 Oz

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*Both based on 1.2 g/t cut‐off

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Koka Outstanding Returns

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160000 900
Production
140000 800
700
120000 Cash costs
600
100000
500
80000
400
60000
300
40000
200
20000 100
0 0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
150
DistributionsCash flow to equity
100
Equity contributions
50
0
‐50
‐100
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
S$/oz)
(koz) U
Production Cash Costs (
Flow (US$m)
Cash
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US$1300 gold price

100% project case , funded by 100% equity Capex US$122M, after tax cash flow generation US$477M

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Koka Development Schedule

	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013	Calendar Year 2010 2011 2012 2013
	Calendar Year	2010			2011				2012				2013
	Quarter	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
	Feasibility Study Release 43‐101 ~~COMPLETED~~
	TSX listing Zara Permitting
	Funding Period Construction
	Pre‐Strip First Production

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Exploration Potential

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

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W KOKA E
KOKA EAST
DEBRA KONATE
500m ANOMALY D
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Koka 3D IP – High Priority Target D

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Surface Au Anomaly
W >100ppb E
Planned Drillholes
Chargeable Body – sulphides?
Resistive Body – silicification?
200m
Chargeable Body – sediments?
15
200m
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Zara North Gold Anomaly – is the big one here?

Extensive gold anomalism over 10km strike length High tenor gold values of up to 876ppb gold in stream sediment samples Regional‐scale high‐strain zone with intense carbonate‐sericite alteration and quartz veining Artisanal workings ‐ up to 27.5 g/t in rock chips Detailed mapping and soil sampling underway to define drill targets – mid 2011

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New Data ‐ Aeromagnetics & Radiometrics

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Mogoraib North – Next‐door to Bisha

Mogoraib North Exploration Licence ‐ ‐ located ~10 km north of the world class Bisha VHMS Project Area 555 sq km

Geological setting similar to Bisha Regional Landsat interpretation reveals similar spectral signatures to Bisha Widespread shallow alluvial cover VTEM survey to commence March 2011 ‐ ~4000 line kilometres

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Exploration Timeline

Exploration program to generate strong news flow Exploration program totaling ~$10M expected

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Calendar Year 2011
Quarter Q1 Q2 Q3 Q4
Induced
Polarisation (IP)
Survey
Aero‐Magnetics &
Radiometrics
VTEM
Geochemical Sampling &
Geological Mapping
Drilling – Koka IP targets
Drilling ‐ Zara North
Drilling – Zara South
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Corporate Contact Details

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Tim Goyder Dr Douglas Jones Joanne Jobin Executive Chairman Managing Director Investor Relations Manager – North America M: +61 418 942 908 M: +61 438 872 090 M: +1 647 964 0292

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.au W: www.chalicegold.com

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