CHALICE MINING LIMITED — Investor Presentation 2018

Sep 24, 2018

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Presentation – Denver Gold Forum
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25 September 2018

ASX : CHN

TSX : CXN

Forward looking statements and disclosures

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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, filings on sedar.com, and to ASX/TSX 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

Forward-Looking Statements

This document may contain 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 document and Chalice Gold Mines 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 estimation of mineral reserve and mineral resources at the East Cadillac Gold Project, the realisation of mineral reserve estimates; the likelihood of exploration success including results of future geophysical surveys, drilling at the Company’s projects and other exploration activities; the timing and costs of future exploration activities on the Company’s exploration projects; the potential to define future mineral resources and, if successful at any of the Company’s exploration projects, the potential viability of any mineral resource so defined; planned expenditures and budgets and the execution thereof; the timing and availability of drill results; potential sites for additional drilling, that general business and economic conditions will not change in a materially adverse manner; 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. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “planning”, “expects” or “does not expect”, “is expected”, “will”, “may”, “would”, “potential”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “believes”, “occur”, “be achieved”, 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 forward-looking statements. Such factors may include, among others, risks related to actual results of current exploration activities; changes in exploration programs based upon results of exploration; future prices of mineral resources; possible variations in mineral resources or ore reserves, 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; 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. 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.

Disclosure

The information in this presentation is extracted from information available to view on www.chalicegold.com. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of exploration results or estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the results and estimates in the relevant market announcements continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

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Investment Highlights

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High impact portfolio in tier-1 jurisdictions
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• District scale exploration projects across prolific geological terranes in Australia and Canada

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Strong balance sheet
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• c. A$36M in cash + A$2.6M in liquid investments at end Jun-18 (~A$0.145 per share) – nil EV

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Proven and experienced team
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• Large, highly capable team with broad experience and specialist expertise

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Track record of success
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• A proven business model, with net proceeds from asset sales of ~A$107M and ~A$25M returned to shareholders to date

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Portfolio of District-Scale, High Impact Projects in Australia and Canada

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Warrego North
Copper-Gold Project Flinders River
Vanadium Project
Yilgarn Gold
Project
Julimar Nickel-
Vanadium Project
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Pyramid Hill Gold Project, Victoria

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Kinebik Gold
Project
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East Cadillac Gold Project, Quebec

• ~3,080km[2 ] land holding NW of the >22Moz Bendigo Goldfield and NE of the 7Moz Fosterville Gold Mine

• Four extensive and coherent gold-in-soil anomalies overlying 70km of strike

• Maiden drill program scheduled for October 2018

• 245km[2 ] area covering 27km of strike along the prolific Larder Lake-Cadillac Fault in the Abitibi Greenstone Belt

• On strike with several globally significant gold mines

• Maiden 27,600m diamond drill program in early 2018 made 3 new discoveries

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What the industry is saying…

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There is an absolute appetite to improve the portfolio mix… and Australia and North America are very much focus areas AngloGold Ashanti

We're open for business in the exploration space, we're actively looking for new partners…. if you have got a project, come and talk to us Newcrest

The most exciting part about Fosterville is the host of other targets that are there and the opportunities – maybe we still haven't found the real gold deposit yet… We believe there's more to come Kirkland Lake Gold

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Pyramid Hill Gold Project

Victoria

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Pyramid Hill is a district scale 3,080km[2] project in the highly prospective and re-invigorated North Bendigo zone

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•
Victorian Govt ‘Gold Undercover’ estimated an undiscovered
gold endowment of ~32Moz in the Bendigo Zone under Murray
Basin cover
•
Chalice controls 3,080km [2] in 3 districts;
•
NW of world-class 22Moz @ 15g/t Au Bendigo Goldfield
•
NE of the 7Moz Fosterville Gold Mine of Kirkland Lake Gold
(ASX: KLA / TSX: KL) – US$264/oz Op. Cash Costs 2017
Four large soil
anomalies defined • W of Catalyst Metals (ASX: CYL) Tandarra and Four Eagles
Projects
•
Region under cover is poorly explored, with limited discoveries
•
Multiple, high grade deposits in areas of outcrop to the south
•
3 major regional faults which host Bendigo, Ballarat, Castlemaine
and other significant deposits extend through the Project
~70km of strike coverage along major regional structures
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• Victorian Govt ‘Gold Undercover’ estimated an undiscovered gold endowment of ~32Moz in the Bendigo Zone under Murray Basin cover

  • NE of the 7Moz Fosterville Gold Mine of Kirkland Lake Gold (ASX: KLA / TSX: KL) – US$264/oz Op. Cash Costs 2017

  • W of Catalyst Metals (ASX: CYL) Tandarra and Four Eagles Projects

• Region under cover is poorly explored, with limited discoveries

• 3 major regional faults which host Bendigo, Ballarat, Castlemaine and other significant deposits extend through the Project

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Pyramid Hill four large gold-in-soil anomalies have been identified, overlying three major regional faults

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~15km to Bendigo Goldfield (22Moz) OPEN OPEN Under cover Outcrop Inglewood (96koz) Tandarra (Catalyst Metals) Raydarra (Catalyst Metals) Four Eagles (Catalyst Metals) West Central East North	~15km to Bendigo Goldfield (22Moz) OPEN OPEN Under cover Outcrop Inglewood (96koz) Tandarra (Catalyst Metals) Raydarra (Catalyst Metals) Four Eagles (Catalyst Metals) West Central East North	~15km to Bendigo Goldfield (22Moz) OPEN OPEN Under cover Outcrop Inglewood (96koz) Tandarra (Catalyst Metals) Raydarra (Catalyst Metals) Four Eagles (Catalyst Metals) West Central East North	~15km to Bendigo Goldfield (22Moz) OPEN OPEN Under cover Outcrop Inglewood (96koz) Tandarra (Catalyst Metals) Raydarra (Catalyst Metals) Four Eagles (Catalyst Metals) West Central East North
	~15km to Bendigo Goldfield (22Moz) OPEN OPEN Under cover Outcrop Inglewood (96koz) Tandarra (Catalyst Metals) Raydarra (Catalyst Metals) Four Eagles (Catalyst Metals) West Central East North			Anomaly Size at 5.5ppb Au contour (km) Peak Gold Value (ppb Au)
				West 12 x 2.8 81
				East 12 x 2.7 21.5
				Central 5 x 2.7 20.7
				North 5 x 2.0 9.6
				8 • Low level gold anomalism in soil is a strong indicator of gold in underlying bedrock • The anomalies aresignificant, as they havescale;overlie major structuresand are proximal to large and high grade gold deposits • Additional soil sampling and ground gravity surveys completed in Sept • Drill targets being finalised for initial program of reconnaissance drilling inOct 2018

Pyramid Hill exploration under cover is challenging, however the prospect of finding another Bendigo provides enormous upside potential

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Schematic cross section showing Saddle and Bedded Reefs
Bendigo
Goldfield New Chum Line Large, high grade deposit
~2.6Moz @ 15.1g/t Au of ~22Moz @ 15g/t Au
Garden Gully Line
~4.8Moz @ 15.0g/t Au World’s largest producer
from 1850 to 1890 Every 100 vertical
metres contained
3-5Moz gold
Hustlers Line
~0.95Moz @ 17.6g/t Au
Sheepshead Line
~0.74Moz @ 11.6g/t Au
Schematic long section
Scale Comparisons
Kalgoorlie ‘Super Pit’ (KCGM)
outline (largest open pit gold
Bendigo mine in Australia) Newmont –
urban area Barrick JV
Canadian Malartic Open Pit
N outline (one of the largest open
pit mines in Canada) Agnico
Eagle – Yamana Gold JV
2km
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Every 100 vertical
metres contained
3-5Moz gold
Schematic long section
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Source: Hughes, F.E. 1990, Geology of the Mineral Deposits of Australia and Papua New Guinea , The Australasian Institute of Mining and Metallurgy, Melbourne

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East Cadillac Gold Project

Quebec

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East Cadillac is located in the prolific and globally significant Abitibi greenstone belt (gold endowment of >210Moz)

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Douay
>3Moz
CANADA
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• 27km of strike along the Larder Lake – Cadillac Fault

  • Fault is the most prolific gold trend in the southern Abitibi, with known gold endowment of >100Moz

• 14 earn-in / purchase agreements executed to consolidate ownership 80-100%

• Mineral Resource at Nordeau West propsect based on historical drilling of c. 175koz Au @ 4.1g/t Au[1]

• 1 NI43-101 and JORC 2012 compliant Mineral Resource at Nordeau West – Indicated 225,000t @ 4.17g/t Au and Inferred 1.11Mt @ 4.09g/t Au

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The Project is along strike from several globally significant gold mines

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LaRonde
>12Moz @ ~5g/t Au
Sigma Lamaque
>11Moz @ ~7g/t Au
YAMANA /
AGNICO EAGLE
AGNICO
Malartic Open Pit EAGLE
>16Moz @ ~1.1g/t Au
Goldex East Cadillac
>5Moz @ ~1.7g/t Au Gold Project
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CANADA
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The Project has all season access and excellent nearby infrastructure

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Canadian
Val-d’Or
Malartic Mine
(>16Moz)
Sigma Lamaque
Mine (>11Moz)
Chimo Mine
Lac Villebon
(>370koz Au
historical
Lac Gueguen
production)
Gold occurrence / deposit
Lac Matchi-Manitou
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~35km by sealed highway from town of Val-d’Or (~30,000 people)

All season access to the property

Geochemistry access May – October

Drilling access on entire property in winter, restricted to non-wetland areas in summer

World class infrastructure including road, rail and power

Multiple gold processing facilities in the region

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East Cadillac work has focused on finding another large (Malartic / SigmaLamaque) style deposit, with three new discoveries in ~18 months

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Nordeau West North Contact Q3 2018 field activity area
Ind Resource 30koz @ 4.2g/t Au 23.5m @ 1.12g/t Au Mineralised trend N
Inf Resource 146koz @ 4.1g/t Au incl. 2.0m @ 6.86g/t Au
and 1.0m @ 5.71g/t Au Gold occurrence
Nordeau East
2017-2018 DDH
McDonough
East Cadillac Gold Project
Forsan
4.0m @ 56.86g/t Au
(historical)
Val-d’Or
~35km
Nordeau South
Lac Villebon East
Simon West
11.9m @ 3.2g/t Au
Incl. 1.6m @ 18.5g/t Au Chimo Gold Mine
(Cartier Resources) Americ
379koz Au @ 4.8g/t
historical production
Lac Rapides
45,000m drilling underway
20.8m @ 0.74g/t Au
5km incl. 3.1m @ 4.27g/t Au
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East Cadillac current field season aims to vector in on high grade within areas of known mineralisation and explore 5 new large-scale targets

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Nordeau West North Contact
M&I Resource 30koz @ 4.2g/t Au 23.5m @ 1.12g/t Au •
Inf Resource 146koz @ 4.1g/t Au incl. 2.0m @ 6.86g/t Au 5 new large
and 1.0m @ 5.71g/t Au N scale target
areas defined
McDonough Nordeau East
from recent
structural re-
4.0m @ 56.86g/t Au Forsan interp work
(historical)
Area 1
•
Program will
build on wide
Area 5 Lac Matchi-Manitou mineralised
zones
Area 3 discovered at
North Contact
and Lac
Lac Villebon East
Rapides
Mineralised trend
Simon West Area 2
Lac Villebon
11.9m @ 3.2g/t Au Gold occurrence • Total program
Incl. 1.6m @ 18.5g/t Au Area 4 2017-2018 DDH budget of c.
Lac Saucisse Soil samples C$1.9M
5km Lac Rapides 2018 3DIP
20.8m @ 0.74g/t Au Americ 2018 Amag
incl. 3.1m @ 4.27g/t Au • July-Oct 2018
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Corporate

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Our business model and track record is sound; we have acquired well and advanced projects quickly…

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Zara Gold Project in
Eritrea sold for
Zara Gold
~
Listed on Project in US$114M , A$25M Cameron
Australian Eritrea special dividend Gold Project in
issued to
Stock acquired for Ontario sold
shareholders
Exchange ~A$7M for ~ A$25M
2006 2012
2009 2016
2010
2013
2007 Private share 2017
Cameron Gold
Chalice & placement to raise Project in
~ Acquired new
A$9M Ontario
Higginsville district-scale
projects sold acquired for exploration
for ~A$12M Listed on Toronto ~A$8M projects in Australia
Stock Exchange
and Canada
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…prudent and well-timed asset sales have generated ~A$107M after tax proceeds to date

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Cashed up and debt free , the top 20 shareholders hold ~60% of the Company

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Capital Structure

Top Shareholders

Australian listing	ASX: CHN
Canadian listing	TSX: CXN
Shares on Issue	~263M
Shares – fully diluted	~281M
ASX 52 week high/low	A$0.26 / A$0.13
TSX 52 week high/low	C$0.32 / C$0.13
Cash	A$35.7M
Liquid investments	A$2.6M
Market capitalisation	~A$40M
Enterprise value	~nil
Exploration budget 2H 2018	>A$5M

Franklin Templeton Tim Goyder (Exec Chairman)	17% 12%	ASX TSX
Paradice Investment Mgmt	4%
Sun Valley Gold	3%
Others	55%	64% 9%
Liquid Investments
AusGold (ASX: AUC) 66M shares (~11%)		~A$1.9M
Others		~A$0.7M

As of 30 June 2018 (rounded)

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Our board and management team are experienced, driven and highly capable

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Tim Goyder, Executive Chairman

• 40+ year industry veteran

• Long track record of success as an investor, entrepreneur and company director

• Largest shareholder of Chalice (~17%)

Stephen Quin, Independent Non-Exec Director, PGeo

• 35 years experience in mining and exploration

• President and CEO of Midas Gold Corp

Morgan Ball, Lead Independent Non-Exec Director, BCom, ACA

• Chartered Accountant with 25+ years experience

• Significant mining, commercial and corporate experience

• Chief Financial Officer of Saracen Mineral Holdings (ASX: SAR)

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Alex Dorsch, Chief Executive Officer, BEng (Hons), BFin

• Experienced consultant, engineer and corporate advisor in the energy and resources sectors

• Previously Specialist consultant with McKinsey & Company

Dr Kevin Frost, GM – Exploration, BSc (Hons) PhD MAIG

• Geologist with 30+ years experience

• Highly regarded geologist within proven history of discovery

• Part of the discovery team for the Flying Fox and Spotted Quoll nickel deposits (Western Areas)

Richard Hacker, Chief Financial Officer, BCom, ACA, ACIS

• 20+ years professional, commercial and corporate experience in the resources and energy sector in Australia and the UK

Patrick Lengyel, Exploration Manager – Canada, BSc

• Geologist with 20+ years experience

• Extensive experience in orogenic gold and base metals Previously Principal Geologist at Teck Resources Limited

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c. $2M field program ongoing in Canada

East Cadillac, Quebec Pyramid Hill, Victoria Indicative exploration	program	2018	2018	2018	2018	2018	2018	2018	2018	2018	2018
		Jul	Aug	Sep				Oct		Nov	Dec
	Drilling Geophysics Geochem		Ground G	ravity Drill ta				Recon ting Final assays
		BLEG soil sampling
									Recon	naissance drilling
							rge
	Geochem Geophysics Drilling			3D-IP				Final assa		ys
		MMI soil sampling	(new + infill)
			Amag
					3D-IP
								Drill t		argeting and perm	itting

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Company Highlights

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District scale exploration projects across prolific geological terranes in tier-1 jurisdictions

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Well funded

c. A$36M in cash + A$2.6M in liquid investments

Proven track record

~ A$107 million generated from asset sales to date

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Thank You

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Level 2, 1292 Hay Street, West Perth WA 6005, Australia +61 8 9322 3960

info@chalicegold.com www.chalicegold.com linkedin.com/company/chalice-gold-mines twitter.com/chalicegold

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