CHALICE MINING LIMITED — Investor Presentation 2018

Jan 21, 2018

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Chalice Gold Mines Ltd

• Drilling on two high potential gold properties in the renowned Abitibi region of Canada

• A$46M in cash and liquid investments, trading at near zero enterprise value

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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 forwardlooking 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.

QP/CP Statement

The information in this report that relates to the East Cadillac Gold Project and Kinebik Gold Project is extracted from the announcement entitled “Chalice expands exploration drilling program at East Cadillac Gold Project after identifying 14 new high-priority targets” dated 16 January 2018 and the “December 2017 Quarterly Activities Report” dated 19 January 2018. This announcements are available to view on the Company’s website at 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 announcement and that all material assumptions in the market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s and Qualifying Persons findings are presented have not been materially modified from the original market announcement.

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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• Strategic exploration footprint across prolific gold and base metals districts in Canada and Australia

• on

• Five rig, ~30,000m drilling program underway two high potential Abitibi projects in Quebec, Canada

• Trading at near zero enterprise value with ~A$46M* in cash and liquid investments (significant re-rating of our Abitibi projects expected)

• Experienced team capable of executing large scale exploration programs

• History of delivering value having advanced and divested two gold projects for net proceeds of ~A$107M and returning ~A$25M to shareholders

* As at 31-Dec-2017

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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Exploration

Acquisitions

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Investments

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Undertake targeted and proactive gold and base metal exploration in proven
but underexplored provinces, leveraging strong in house expertise
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Actively pursue asset acquisition and partnership opportunities with cash
flow potential and exploration upside
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Adopt a nimble, ‘first mover’ approach to short-medium term investments
where we see material upside, as a strategic alternative to acquisition
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Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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Exploration

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• High-quality and diverse exploration portfolio in Canada and Australia*

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1
3
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• Strategic land position in the prolific Abitibi greenstone belt in Quebec, Canada;

• 1 • East Cadillac Gold Project – 16km of strike, 35km east of Val-d’Or

• 2 • Kinebik Gold Project – 30km of strike along the Casa Berardi Fault

• Plus an early stage project in Australia;

• 3 • Warrego North Copper-Gold Project – targeting IOCG deposits

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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East Cadillac Kinebik 1 2 Illustrative w	ork program	2017	2017	2017	2018	2018	2018	2018	2018	2018	2018	2018
		Oct	Nov	Dec	Jan			Feb	Mar	Apr	May	Jun
	3D IP survey Surface sampling Diamond drilling								000m	As	says expecte	d
		14 holes fo	r 7,700m				70 ho	les for 21,
	3D IP survey Diamond drilling							es for m	As	says expecte	d
							9 hol 1,800
	19. Jan 2018

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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• 1 • The East Cadillac Gold Project is at the eastern end of the Larder LakeCadillac Fault

• The fault is the most prolific gold trend in southern Abitibi, with proven gold endowment of >100Moz

• The Project includes 16km of strike along the fault, in an area of 145km[2]

• 2 • The Kinebik Gold Project, ~150km to the north includes 30km of strike along the Casa Berardi Fault

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Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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• The Project is on strike with several significant mining operations , including those owned by;

• Agnico Eagle (NYSE:AEM)

• Yamana Gold (TSX:YRI)

• Eldorado Gold (TSX: ELD)

• The area has excellent infrastructure (road, power, water)

• Quebec is a very mining c.

• friendly jurisdiction, with a 30% exploration refund

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Recently announced
plans for 85km of drilling
in 2018 following on
from 83km in 2017
Drilling 20km
in 2018
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Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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Enterprise value of Chalice’s listed Val-d’Or peers (C$M)

590 101 81 Potential revaluation 47 33 34 0 Chalice Gold Alexandria Cartier QMX Gold Monarques Gold Probe Metals Inc. Eldorado Mines Limited Minerals Resources Inc. Corporation Corporation acquisition of Corporation Integra (May-17)

Source: S&P Global Market Intelligence as of close 16-Jan-2018

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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Geochemistry surveys (incl. A Rock chip, MMI soil, Black Spruce bark)

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Results integrated at Geophysical surveys (incl. 3D end 2017 to form a B IP, Amag, LIDAR surveys) comprehensive geological model 7,700m diamond drilling (14 C holes testing four targets)

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Expanded and targeted drilling program of 21,000m in Q1 2018

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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• Four diamond rigs currently drilling accelerated program during the optimum winter field season

• Targets to North and South of structural corridor, regionally similar to Canadian Malartic (>10Moz Au) and Sigma Lamaque (9Moz Au), are almost entirely untested

• 3D IP also planned over newly acquired Forsan tenement holding

• Cartier Resources also drilling 20,000m in 2018 – high degree of activity in the region

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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• Underexplored greenstone belt which hosts significant gold deposits including the Casa Beradi gold deposit (c. 6Moz) owned by Hecla Mining (NYSE: HL)

• 187km[2] property area covering 30km of strike length along the Casa Berardi fault

• Numerous soil geochemical anomalies identified and 3D IP survey completed

• 9 holes for 1,800m underway

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Douay
2.8Moz Au
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Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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South Anomaly

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• Completed 200m spaced biogeochem sampling in Q3 2017 to augment the Q3 2016 MMI soil sampling results that identified the South Anomaly

• 55 line km 3D Induced Polarisation (3D IP) supported the 2016 gold and pathfinder element anomalies

• 1,800m diamond drilling underway to test the South Anomaly

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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Acquisitions and investments

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2012
2017
• Zara Gold
2007 Project 2013 2016 • Refocused
2009
• Chalice & • Zara Gold sold for ~ US$114M , • Cameron • Cameron on building the
Higginsville Gold Gold
Project A$25M exploration
projects Project Project
sold for acquired special acquired sold for portfolio,
for ~A$7M dividend ~ acquired
~A$12M for ~A$8M A$25M
issued to East
share- Cadillac
holders
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Prudent and well-timed asset sales have generated significant profits to date

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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Acquisition strategy

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Actively pursue asset acquisition and partnership opportunities with cash
flow potential and exploration upside
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Target Commodities Target maturity Target regions
Drill ready Discovery BFS Start-up EOL
Early Expl Adv Expl Pre-Dev Dev Ops Decom
PFS
Gold and Nickel
Base and battery metals
We aim to expand within our current two region
Energy and specialty footprint, however additional regions assessed
metals on a case-by-case basis
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Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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Corporate

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Capital Structure*

Substantial Shareholders*

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ASX
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TSX

Capital Structure* Substantial Sharehold	Capital Structure* Substantial Sharehold	ers* TSX ASX
Primary listing ASX: CHN Secondary listing TSX: CXN Shares on Issue 261M Shares – fully diluted 276M ASX 52 week high/low A$0.26 / A$0.15 TSX 52 week high/low C$0.33 / C$0.15 Cash ~A$43M Liquid equity investments ~A$3M Market capitalisation ~A$48M Enterprise value ~A$2M Top 20 ASX approx. Others Franklin Resources Inc. Tim Goyder (MD)		62% 17% 71% 9% 12%
	Top 20 ASX approx.	60%

*As of 31-Dec-17

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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Tim Goyder, Managing Director

• 40+ years experience in the resource industry

• Successful investor and entrepreneur

• Largest shareholder in Chalice (~17%)

Anthony Kiernan, Non-Executive Chairman, LLB

• Commercial and corporate advisor to several mining/resources companies

• Previously a solicitor with considerable experience in the management and operation of listed public companies

Stephen Quin, Independent Non-Executive Director, PGeo

• 35 years experience in mining and exploration

• President and CEO of Midas Gold Corp.

Morgan Ball, Independent Non-Executive Director, BCom, ACA

• Chartered Accountant with 25+ years experience

• Highly regarded with significant mining, commercial and corporate experience

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

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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

Alex Dorsch, GM – Corporate Development, BEng (Hons), BFin

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

• Previously Specialist consultant with McKinsey & Company

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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Aggressive ~30,000m, five rig exploration program in one of the world’s leading gold districts

Protected from downside at Experienced and near zero EV and exposed to capable team that have favourable market done it before and who conditions predicted in 2018 are fully committed

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Tim Goyder Managing Director +61 8 9322 3960

Alex Dorsch GM – Corporate Development +61 8 9322 3960

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www.chalicegold.com

info@chalicegold.com

https://au.linkedin.com/company/chalice-gold-mines

https://twitter.com/chalicegold

Investor Presentation – Jan 2018 │ www.chalicegold.com │ ASX:CHN, TSX: CXN

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