CHALICE MINING LIMITED — Investor Presentation 2021

Nov 2, 2021

ASX Announcement

3 November 2021

Falcon Metals – Investor Webinar and Presentation

Investor webinar to be held at 9am AWST, Thursday 4 November 2021

Chalice Mining (ASX: CHN) has today released full details of the proposed demerger of the Company's gold projects into Falcon Metals Limited (Falcon, ASX: FAL). A live investor webinar will be held at 9am AWST, Thursday, 4 November 2021.

Attached is a copy of the presentation that will be provided at the investor webinar.

Participants must register to join the webinar via the following link:

https://www.bigmarker.com/read-corporate/Chalice-Mining-Investor-Briefing-Spin-out-of-goldassets-into-Falcon-Metals

It is recommended that you log on at least 10 minutes prior to the commencement of the webinar.

Participants who would like to submit questions prior to the commencement of the webinar can email: info@readcorporate.com.au

Authorised for release by the Disclosure Committee.

For further information, please visit www.chalicemining.com/falcondemerger, or contact:

Corporate Enquiries

Alex Dorsch Managing Director and CEO Chalice Mining Limited +61 8 9322 3960 info@chalicemining.com

Media Enquiries

Follow our communications

Nicholas Read LinkedIn: chalice-mining Principal and Managing Director Twitter: @chalicemining Read Corporate Investor Relations +61 8 9388 1474 info@readcorporate.com.au

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Registered Office ABN 47 116 648 956 Level 3, 46 Colin Street, West Perth WA 6005, Australia PO Box 428, West Perth WA 6872

info@chalicemining.com www.chalicemining.com

@chalicemining chalice-mining

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

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Demerger and IPO Briefing

3 NOVEMBER2021

Important Notice and Disclaimers

This presentation has been prepared by Falcon Metals Ltd ACN 651 893 097 (Falcon), a wholly owned subsidiary of Chalice Mining Ltd (ACN 116 648 956) (Company). It contains general background information only which is current at the date of this presentation unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive, comprehensive or to contain all of the information that may be relevant, or which a prospective investor may require in evaluations for a possible investment in the Company or Falcon. Prospective investors should not rely on the information contained in this presentation, and must satisfy themselves as to the accuracy of all such information. This presentation has been prepared based on information available at the time of preparation and is subject to change without notice. In receiving this presentation, each recipient agrees to the foregoing terms and conditions, including any modifications to them. No person is under any obligation to update this presentationat any time afterits release.

This presentation is provided for general information purposes only. This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of securities in the Company or Falcon in any jurisdiction. It is not a prospectus, product disclosure statement, pathfinder document or any other type of public offer disclosure document for the purposes of the Corporations Act 2001 (Cth) (Corporations Act) and has not been, and is not required to be, lodged with the Australian Securities and Investments Commission. It should not be relied upon by the recipient in considering the merits of the Company or Falcon, or the acquisition of shares in the Company or Falcon. The Falcon Prospectus dated 3 November 2021 is available on www.falconmetals.com.au (Falcon Prospectus). The offer of shares in Falcon is made in the Falcon Prospectus. A person should consider the Falcon Prospectus in deciding whether to acquire shares in Falcon. Anyone who wants to acquire sharesin Falcon will need to complete the application formthat is in or that accompanies the Falcon Prospectus.

This presentation does not constitute investment or financial product advice. It is not intended to be used as the basis for making a financial decision, nor is it intended to constitute legal, tax, accounting or other advice. This presentation has been prepared without taking account of any person's individual investment objectives, financial situation or particular needs. Before making an investment decision, the recipient should consider its own financial situation, objectives and needs, and conduct its own independent investigation and assessment of the contents of this presentation, including obtaining investment, legal, tax, accounting and such other advice as it considers necessary or appropriate. Any references to or explanations of legislation, regulatory issues, benefits or any other legal commentary (if any) are indicative only, do not summarise all relevant issues and are not intended to be a full explanation of a particular matter. The information in this presentation has been obtained from and based on sourcesbelieved by the Company and Falcon to be reliable. Past performanceis not an indication of future performance.

This presentation may contain forward-looking statements, guidance, forecasts, estimates, prospects, projections or statements in relation to future matters that may involve risks or uncertainties and may involve significant items of subjective judgement and assumptions of future events that may or may not eventuate (Forward Statements). Forward Statements can generally be identified by the use of forward looking words such as "anticipate", "estimates", "will", "should", "could", "may", "expects", "plans", "forecast", "target" or similar expressions. Forward Statements including indications, guidance or outlook on future revenues, distributions or financial position and performance or return or growth in underlying investments are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. To the extent that certain statements contained in this presentation may constitute 'Forward Statements' or statements about forward looking matters, then the information reflects the Company and Falcon's (and no other party's) intent, belief or expectations as at the date of this presentation. No independent third party has reviewed the reasonableness of any such statements or assumptions. None of the Company, Falcon, their related bodies corporate and their respective officers, directors, employees, advisers, partners, affiliates and agents (together, the FAL Parties) represent or warrant that such Forward Statements will be achieved or will prove to be correct or gives any warranty, express or implied, as to the accuracy, completeness, likelihood of achievement or reasonableness of any Forward Statement contained in this presentation. Except as required by law or regulation, the Company assumes no obligation to releaseupdates or revisionsto ForwardStatementsto reflect any changes. Recipients should formtheir own views as to these mattersand any assumptions on which any of the Forward Statementsare based and not place reliance on such statements. All dollar values arein Australiandollars ($ or A$) unless otherwisestated.

An investment in the Company's or Falcon's securities is subject to known and unknown risks, many of which are beyond the control of the Company and Falcon, including factors and risks specific to the industry in which the Company and Falcon operates as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets. The Company does not guarantee any particular rate of return or the performance of the Company or Falcon, nor does it guarantee any particular tax treatment. Prospective investors should make their own enquiries and investigations regarding all information in this presentation, including the assumptions, uncertainties and contingencies which may affect future operations of the Company and Falcon and the impact that differentfuture outcomes may have on the Company and Falcon.

The distribution of this presentation to persons or in jurisdictions outside Australia may be restricted by law and any person into whose possession this document comes should seek advice on and observe those restrictions. The presentation is not an offer of securities in the Company or Falcon for subscription, purchase or sale in any jurisdiction outside Australia, including the United States or in relation to any US person (as defined in Regulation S under the U.S Securities Act of 1933, as amended). Any failure to comply with such restrictions mayviolate applicable securitieslaw.

No party other than the Company has authorised, permitted or caused the issue, submission, dispatch or provision of this presentation, or takes any responsibility for, or makes or purports to make any statement, representation or undertaking in this presentation and there is no statement in this presentation that is based on any statement by any other party. No person, either as a director, partner of or in the employment of the Company has any authority to make, imply, or give any representation or warrantywhatsoever inrelation to the informationcontained in this presentation.None of the FAL Partiestake any responsibility for any information in this presentationor any action taken by you on the basis ofsuch information.

To the maximum extent permitted by law, the FAL Parties:

exclude and disclaim all liability, including (without limitation) any liability for fraud or negligence, for any expenses, losses, damages or costs incurred either as a result of the information in this presentation being inaccurate or incomplete in any way for any reason,or otherwisearisingin connection with this presentation;and

make no representationor warranty,expressor implied, as to the currency, accuracy, reliability or completeness of informationin this presentation.

Competent PersonStatement

The information in this Presentation that relates to Exploration Results is extracted from the Falcon Prospectus dated 3 November 2021 which is available on www.falconmetals.com.au and the Company's Notice of General Meeting dated 2 November 2021 which is available on the Company's ASX market announcements platform.

The Company confirms that it is not awareof any new informationor data that materially affectsthe informationincluded in the Prospectusand Notice of GeneralMeeting.

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Investment Highlights

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A new, high-profile gold exploration specialist in Victoria

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Led by a highly decorated, specialist team with a history of ‘company making’ discoveries (Julimar, NovaBollinger, Thunderbox, Waterloo)

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5,000km[2] holding in the Bendigo Zone of Victoria, a region which hosts one of the world’s highest grade and most profitable gold mines, the Fosterville Gold Mine[1]

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Strong starting cash position – a unique platform to make a significant gold discovery

3

1. Owned by Kirkland Lake Gold

1 ~3

1 ~6

4

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Demerger Overview
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Demerger will result in two separate ASX-listed companies – Chalice will focus on the world class Julimar Ni-Cu-PGE Project, while Falcon will be focussed on tier-1 gold discoveries

Overview

• The Demerger will result in two independent ASX listed companies – Chalice and Falcon – each with a management team focused on pursuing its own strategy

• Chalice shareholders will have the opportunity to vote on the Demerger at the Extraordinary General Meeting on 3 December 2021

• Chalice Directors unanimously recommend that Chalice shareholders vote in favour of the Demerger Resolution

• Chalice shareholders will be entitled to receive 1 share in Falcon for each ~3 existing shares held in Chalice (1 for 3)[1]

• Concurrent with the demerger, Falcon is seeking to raise a minimum of $15 million and up to $30 million via an IPO:

Post Demerger Overview

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Chalice In-specie IPO Capital Raise:
Shareholders $15-30m
100%
Chalice Mining Falcon Metals
(ASX: CHN) (ASX: FAL)
100%
Projects
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• Pyramid Hill Gold Project, Victoria (100% owned)

• • Viking Gold Project, WA (earning 70% interest)

• Mt Jackson Gold Project (100% owned)

• Chalice shareholders have the opportunity to maintain an undiluted interest through a priority entitlement, or take up additional interest (subject to capacity)

5

1. Eligible Chalice shareholders to receive 1 Falcon Metals share for every 3.025 Chalice shares held on the In Specie Record Date (subject to amount of shares on issueon that date)

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Demerger Rationale
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The Board of Chalice believe that this is a logical separation of different projects, with the potential to unlock shareholder value

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Logical separation of gold projects from Chalice’s Ni-Cu-PGE projects, allowing shareholders to gain separate exposure to the different commodity groups

Independent Board and Management to respectively prioritise resources and focus their efforts to drive shareholder value

Enables Chalice shareholders to continue to participate in the growth of the demerged gold projects through a well-financed standalone entity

Unlocks value potential for the demerged gold projects which are currently underappreciated by the market

Enables greater flexibility to adopt an appropriate capital structure for each company, given they are at different stages in the project lifecycle with distinct investor and financier priorities

6

IPO Details

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Falcon to raise between $15 to $30 million to advance systematic, high-impact greenfield exploration

Key Offer Details

Use of Funds (2 Years)

Item	Minimum subscription	Maximum subscription
Offer price per share	A$0.50 / share	A$0.50 / share
Gross proceeds of the Offer	$15 million	$30 million
Shares to be distributed under In-specie
Distribution to Eligible Chalice	117,000,000	117,000,000
Shareholders
Maximum number of Shares offered under the Offer	30,000,000	60,000,000
Total Securities on issue	147,000,000	177,000,000
Implied Market Capitalisation on completion1	$73,500,000	$88,500,000
Implied Enterprise Value on completion1	$58,500,000	$58,500,000

	Minimum	Maximum
	subscription	subscription
Exploration expenditure:
Pyramid Hill	$7,825,000	$15,350,000
Viking	$1,950,000	$2,500,000
Mt Jackson	$225,000	$225,000
Total exploration expenditure	$10,000,000	$18,100,000
Working capital	$2,100,000	$8,350,000
General administration fees and working capital	$1,900,000	$2,100,000
IPO costs	$1,000,000	$1,450,000
Total	$15,000,000	$30,000,000

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1. Before costsof the IPO

Demerger Timetable & IPO Overview

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Process commences 3 November 2021 and trading will commence by 22 December 2021

• Chalice shareholders will vote on the Demerger at the General Meeting on 3 December 2021

• Under the IPO Priority Offer, Chalice Shareholders have the opportunity to apply for 1 Falcon share for every ~5.882 Chalice shares held

• If entitlements not fully taken up, opportunity to

participate in the Shortfall Offer

• Bell Potter Securities Limited appointed Lead Manager

to IPO

• ASX listing scheduled for 22 December 2021

Event	Date(1)
Lodgement of Prospectus with ASIC	3 November 2021
Priority Offer Record Date	9 November 2021
Opening Date for the Priority Offer	11 November 2021
Closing Date for the Priority Offer	1 December 2021
Closing Date for the Shortfall Offer	3 December 2021
Meeting of Chalice Shareholders to approve Demerger	3 December 2021
Completion of the acquisition of Projects	6 December 2021
In-specie Distribution Record Date	9 December 2021
Issue Date of Shares under Offer and In-specie Distribution and despatch of holding statements	15 December 2021
Falcon Metals shares commence trading on ASX	22 December 2021

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1. Dates shown are indicative and subject to change

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Directors & Management
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Falcon will be led by a highly decorated, specialist team with a history of ‘company making’ discoveries (Julimar, Nova-Bollinger, Thunderbox, Waterloo)

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Dr Mark Bennett Non-Executive Chairman

• 30+ years’ experience in gold and base metal exploration.

• Founding managing Director and CEO of Sirius Resources

• Currently the Executive Chairman of S2 Resources and Non-Executive Director of Todd River Resources

• Two-time winner of the Association of Mining and Exploration Companies “Prospector of the Year” Award (Nova-Bollinger, Thunderbox and Waterloo)

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Tim Markwell Managing Director & CEO

• 25+ years’ experience in gold and base metal exploration with expertise in geology, fund management, and mining

• Held the role of Investment Manager of the African Lions funds at Lion Selection Group for 14 years

• Acted as Non-Executive Director for Predictive Discovery and Anax Metals and additionally as CEO for Celamin Holdings

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Alex Dorsch Non-Executive Director

• Managing Director of Chalice since late 2018, led the

• company through the Julimar discovery in 2020

• Diverse experience in the resources sector in a variety of management, advisory, and consultancy roles

• Recognised as ‘New / Emerging Leader of the Year’ by MiningNewsand ‘CEO of the Year’ by Kitco in 2020

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Andrea Betti CFO / Company Secretary

• 20+years experience as an accounting and corporate governance professional

• Acted as Chief Financial Officer, Company Secretary, and senior executive in the banking and finance industry

• Currently a director of a Perthbased corporate advisory company

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Falcon Project Portfolio
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Mt Jackson Project
PERTH
MELBOURNE
Viking Project
Pyramid Hill Project
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1 2

3

Pyramid Hill Gold Project, VIC

• 5,000km[2] holding NW and NE of the Fosterville Gold Mine

• 100% owned, all under cover in unexplored terrane

• Ready-to-drill >4km gold trend + 3 gold bearing diorite intrusions

• Diamond + AC drilling planned in Q1 2022

Viking Gold Project, WA

• Earn-in to 70% + 100% owned tenure, 30km ESE of Norseman

• Large gold system discovered in 2011

• Extensive zone of high-grade supergene gold mineralisation

• RC drilling planned in Q1/Q2 2022

Mt Jackson Gold Project, WA

• 100% owned, underexplored part of the Southern Cross belt

• Highly prospective for orogenic gold

• Large untested gold-in-soil anomaly

• AC drilling planned

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Pyramid Hill Project

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The Opportunity

Underexplored world class, high-grade gold province under cover

• 60Moz of gold produced since 1850’s from outcropping South Bendigo Zone, at an average grade of ~15g/ Au[1]

• 90% of mines had a recovered grade of

  • 8.5g/t Au[1]

• 32Moz Au (P50 mid case) of undiscovered gold in the Northern Bendigo Zone (Vic Govt ‘Gold Undercover[1] ’ estimate) – an area essentially unexplored and Falcon’s focus

• Gold Undercover Report 2 – Assessment of undiscovered mesozonal orogenic gold endowment under cover in the northern part of the Bendigo Zone – Appendix 4, Table A41

• All gold numbers represent historic production and can be sourced here:

• 2003, Bierlein etal., A comparison of orogenic gold mineralisation in central Victoria (AUS), western South Island (NZ) and Nova Scotia (CAN): implications for variations in the endowment of Palaeozoic metamorphic terrains

• Kirkland Lake website – Resource and Reserve Statement and Fosterville Gold Mine, Victoria, Australia Updated NI 43-101 Technical Report – Apr 1, 2019

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Bendigo Zone | Bendigo Zone Undercover
Stawell Zone | Stawell Zone Undercover
Melbourne Zone | Melbourne Zone Undercover
Falcon Tenure
Bendigo
~22Moz Historic Gold Production
>8 Moz
5 – 8 Moz
3 – 5 Moz
1 – 3 Moz
Fosterville
Stawell >8Moz2 <1 Moz
Woods Point
Castlemaine Walhalla
~6Moz N
Ballarat
~14Moz Melbourne 50km
12
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Regional Scale Faults

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32Moz of gold yet to be discovered under Murray Basin sedimentary cover[1]

• Outstanding greenfield potential

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NSW
VIC
•
Largely neglected
(underexplored) world- class
Northern
gold province (>60Moz produced Bendigo Four Eagles
from South Bendigo Zone alone) Zone
Tandarra
•
Strong exploration activity since Extension of these Karri Fosterville >8Moz Melbourne
Zone
Fosterville Swan Zone discovery
regional scale faults
in 2017 (2.7Moz @ 32g/t Au) under cover evident Ironbark
Bendigo ~22Moz
in regional gravity Banksia
•
Primed for next wave of geophysics as well as
Wandoo
2D seismic
discoveries in Northern Bendigo
Zone Falcon Priority Target
Advanced Gold Prospect
•
Same prospective geology
Gold Deposit
continues undercover
Major Fault
Ballarat (14Moz) and
Major Fault extension undercover Castlemaine (6Moz)
Interpreted mineralised fluid flows along strike to the south
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1. Gold Undercover Report 2 – Assessment of undiscovered mesozonal orogenic gold endowment under cover in the northern part of the Bendigo Zone – Appendix 4, Table A41 2. All gold numbers represent historic production and can be sourced here:

2. 2003, Bierlein etal., A comparison of orogenic gold mineralisation in central Victoria (AUS), western South Island (NZ) and Nova Scotia (CAN): implications for variations in the endowment of Palaeozoic metamorphic terrains

3. Kirkland Lake website – Resource and Reserve Statement and Fosterville Gold Mine, Victoria, Australia Updated NI 43-101 Technical Report – Apr 1, 2019

13

Strategic Land Position

Falcon has over 5,000km[2] representing one of the largest land holdings in the prolific Bendigo Zone

• The recent success at Fosterville attracted significant new players into the district and Chalice secured a large and highly prospective land holding (to be demerged to Falcon)

• Project covers hundreds of kilometres of strike over the highly prospective Bendigo Zone and Castlemaine Group geology, which is the known host to all major gold deposits in the district e.g. Fosterville, Bendigo, Ballarat.

• Prior to Chalice most of the area essentially undrilled

• Vast majority of historical drilling either not gold focused or ineffective

• Regional-scale activities commenced in mid2018 and focussed on shallow (<100m) areas of

cover

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Interpreted Faults
Murray River
Basement Outcrop Limit
Falcon Tenure
Gold Occurrence
Muckleford
Goldfield / Deposit
North Area
Falcon Prospect Melbourne
N
25km Stawell
Long / Lat (GDA94) Zone Bendigo
Zone
Catalyst Metals –
Hancock Prospecting
Percydale Catalyst Metals
– St Barbara
Area Muckleford Melbourne
Area Zone
Karri
Under
Kirkland
Cover
Lake
Outcrop Mt William
Ironbark Area
Navarre
Minerals
Banksia
Newmont
Ironbark
Providence
Mining
Gold
Fosterville
Wandoo
Poverty Reef >8Moz
St Arnaud 0.4Moz @ 72g/t Au (incl. 2.7Moz @ 32g/t
Au Swan Zone)
0.4Moz @ ~15g/t Au
Bendigo
22Moz @ ~15g/t Au
Drummartin Fault
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Key Prospects

4 large scale priority prospects identified by Chalice will be the focus of future work

• Prospect Description • Shallow gold intersections over ~4km of strike and up to 32.1g/t Au

• Karri • Under ~50-80m of Murray Basin cover • Located ~20km west of Four Eagles discovery (Catalyst Metals)

• Shallow gold intersections up to 9.4g/t Au with strongly anomalous As and Sb

• Ironbark • Associated along the margins of diorite intrusive rocks displaying similarities to Walhalla-Woods Point orogenic style deposits in the Melbourne Zone

• • Strongly anomalous (transported) gold over an

• Banksia inferred >10km strike length and up to 8.7g/t • Drill line spacing remains wide (3-5km)

• Low level gold up to 0.15g/t and elevated arsenic over ~5km strike

• Wandoo

• Comparable results to those returned at Karri in first pass AC drilling

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Karri
Ironbark
Banksia
50km Wandoo
N
11.45m @ 1.02g/t f. 284m
Karri 5.1m @ 14g/t f. 100.9m
incl. 2.2m @ 32.1g/t
30m @ 1.12g/t f. 80m
29m @ 0.82g/t f. 96m
Ironbark
incl.13m @ 1.52g/t
6m @ 3.84g/t f. 56m
to EOH
Outcrop Under
Cover
4m @ 2.39g/t f. 88m
incl. 2m @ 4.50g/t Banksia
10m @ 1.99g/t f. 104m
(transported)
incl. 1m @ 8.73g/t
(transported)
Wandoo
Pyramid Hill Gold ProjectPyramid Hill Gold Project
Muckleford – Plan ViewMuckleford – Plan View
Drilling Results over GeolDrilling Results over Ge o gylogy
Geology
Castlemaine Group Sediments
St Arnaud Group Sediments
Granitoid 20km Key Gold intercept (Au)
Murray Basin - limit of outcrop Long / Lat (GDA94) Mine/Advanced Prospect
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Karri Prospect

Large scale prospect with significant primary gold zones intersected over 2.5km of strike

• Diamond and AC drilling has identified multiple primary gold zones over 4km of strike within highly prospective tightly folded, Castlemaine Group stratigraphy – the host to all major gold deposits within the Bendigo structural Zone (>60Moz historical production)

• Gold mineralisation coincidental with strongly elevated arsenic anomalism and remains open along strike and at depth

• Diamond drilling on 1km spaced lines has returned some exceptional results including 5m @ 14.0g/t Au from 100.9m incl. 2.2m @ 32.1g/t Au

• Further diamond drilling planned in Q1-Q2 2022 to vector towards potential high grade mineralisation

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Karri
Ironbark
Banksia
50km Wandoo
OPEN
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11.45m @ 1.02g/t f. 284m
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8m @ 1.05g/t f. 202m
5.1m @ 14.0g/t f. 100.9m
4m @ 3.25g/t f. 390.4m
incl. 2.2m @ 32.1g/t
incl. 1m @ 12.10g/t
6m @ 2.08g/t f. 261m
incl. 1m @ 11.85g/t
20m @ 0.65g/t f. 193m
incl. 3m @ 1.74g/t
Murray Basin Cover
Interbedded Sandstone-Shale
Sandstone
Shales
AC hole collar
Diamond hole collar
Key Diamond drill intercept (Au)
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500m
OPEN
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Pyramid Hill Gold Project
Karri Prospect 3D View – AC
m
and diamond drilling
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16

Ironbark Prospect

Promising early results along diorite margins

• 4 diamond drill holes completed by Chalice for geological purposes, indicating the margins of diorite intrusives are mineralised and highly prospective

• Strong arsenic and/or antimony geochemical association with the gold mineralisation consistent with most other significant gold deposits in Victoria

• Results to date include 13m @ 1.53g/t Au to EOH at Ironbark East and 6m @ 3.8g/t Au at Ironbark North

• Several analogous high-grade diorite-associated gold deposits in Eastern Victoria (Walhalla-Woods Point Goldfields) including Cohen’s Reef (~1.5Moz @ 32g/t Au)[1]

• Additional AC drilling along strike planned in Q1 2022 to define the mineralised envelopes and vector towards potential high-grade mineralisation

• 2006, Vandenberg etal., Walhalla-Woods Point-Tallangallook, Special map area geological report, GeoScience Victoria, Ch 8 - Economic Geology, page 231]

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764,000 mE 766,000 mE
Karri Possible diorite Karri
Ironbark Banksia intrusion ~22km
50km Wandoo
29m @ 0.82g/t f. 97m
20m @ 0.64g/t f. 104m Ironbark North
incl.13m @ 1.52g/t to EOH
incl. 8m @ 1.39g/t
8m @ 2.02g/t f. 102m OPEN
PHDH002
PHDH009
6m @ 3.84g/t f. 56m Ironbark East
OPEN
9m @ 0.91g/t f. 61m
incl. 3m @ 1.41g/t
Ironbark South
Pyramid Hill Gold Project
Ironbark Prospect – Plan View 0.4m @ 2.68g/t f. 162m
Drilling over TMI RTP
Ground/Aeromagnetics
Drilling OPEN
Max gold in AC drill hole (g/t)
>1.0
0.5 – 1.0 N
0.25 – 0.5
0.1 – 0.25
<0.1
1km
Key Drill intercept (Au) Possible diorite
Approx.. Diorite Outline intrusion MGA Zone 54 17
(Interpreted Position)
Campbelltown Fault
5,964,000 mN
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Next Steps – Targeted Drilling & Pipeline Generation

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Strategy is to drill out best prospects while generating a pipeline of additional targets

• Building on Chalice’s strategy of identifying the big ‘Fostervillelike’ gold systems under shallow cover first:

• Screening thin cover areas with wide space recon. AC drilling and surface sampling

• Infill drilling to vector towards the larger, more promising targets

• Drill out best prospects at sufficient density to evaluate their potential

• Focussed drilling program: Infill diamond and / or AC drilling at Karri, Ironbark, Banksia and Wandoo to expand on and vector towards high-grade primary gold mineralisation

• Reconnaissance Drilling: Additional reconnaissance AC and soil sampling over highly prospective granted tenure to add to pipeline of prospects

• ²

• Application Tenure: ~1,776km to be granted to Falcon (anticipated in 2022). Highly prospective ground along strike from Ironbark and historical Wehla and Steiglitz goldfields

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N
Karri
Under
Ironbark Cover
Outcrop
Banksia
Wandoo
Pyramid Hill Gold Project
Key Prospects over Geology
Geology
Castlemaine Group Sediments
St Arnaud Group Sediments
Mine/Advanced Prospect
Murrindindi Supergroup Sediments
Falcon Granted Tenure
Heathcote Volcanics
Falcon Application Tenure
Granitoid 25km
Falcon Application Tenure
Murray Basin - limit of outcrop Long / Lat (GDA94)
(Competitive Process) 18
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WA Projects

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Viking Project

RC drilling planned to test below several significant oxide gold intersections

• Located 30km ESE of Norseman within the high-grade metamorphic Albany-Fraser province

• Falcon earning into E63/1963 (held by Metal Hawk Limited), by spending $1m to earn 51% and a further $1.75m to earn 70%

• Previous systematic surface auger geochemistry and AC drilling completed across the Beaker prospects by AngloGold has generated multiple targets for follow-up exploration

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Aeromagnetics
Perth Viking
Beaker 4 Beaker 3
7m @ 3.8g/t
Section
4.4m @ 6.6g/t
6421000 N
Beaker 2 5m @ 44.5g/t
6.0m @ 6.0g/t
Section 3m @ 8.2g/t
6420080 N
4m @ 15.4g/t
E63/1963
Beaker 1
2m @ 3.3g/t
2m @ 13.1g/t
N
2 km
GDA94 Zone 51
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Viking Project

Beaker 2 Prospect – RC drilling to test high-grade results is a priority

• Significant high-grade supergene gold mineralisation including 5m @ 44.5g/t Au from 50m and 4m @ 15.4g/t Au from 40m at the Beaker 2 prospect

• RC drilling planned at the Beaker 1, 2 and 3 prospects in Q1/Q2 2022, targeting primary gold mineralisation down dip and along strike from the historical gold intercepts

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Mt Jackson Project

Untested greenstone with surface gold and pathfinder geochemical response

• 100% owned, underexplored northern end of the Southern Cross greenstone belt where it converges with the regional Koolyanobbing Shear Zone

• Southern Cross Greenstone Belt has a long high-grade mining history and hosts multiple significant gold orogenic gold deposits, including Marvel Loch (>1.5 Moz) and Yilgarn Star (>1.1 Moz)

• Coincidental gold-arsenic-antimony soil anomaly overlying the northern extents of a >5km long aeromagnetic anomaly, interpreted to be mafic/ultramafic due to its elevated Chrome response

• Initial AC drilling planned as an initial test of the target

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Mt Jackson
Perth
Auger Au (ppb)
Soil Point
>10
>7 N
>5
5 km
>4
>3 GDA94 Zone 51
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Investment Highlights

Highly decorated team with a history of ‘company making’ discoveries (Julimar, Nova-Bollinger, Thunderbox, Waterloo)

1

2

5,000km[2] holding in one of the world’s most exciting high-grade gold regions

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Strong balance sheet post IPO – a unique platform to make a significant gold discovery

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Key risks

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This section identifies the areas that the directors regard as the major risks associated with an investment in the Company. Investors should be aware that an investment in the Company involves many risks, which may be higher than the risks associated with an investment in other companies. There are numerous widespread risks associated with investing in any form of business, with investing in the exploration, development and mining industry, and with investing in the share market generally. There is also a range of specific risks associated with the Company's business. Many of these risk factors are beyond the control of the Company and its directors because of the nature of the business of the Company. The following summary, which is not exhaustive, represents some of the major risk factors which potential investors need to be aware of. Capitalised terms have the same meanings as in the Prospectus which was lodged on the day of this presentation. Please refer to Section 3 of Falcon's Prospectus dated 3 November 2021 for additional information regarding the key risks.

Limited operating history

The Company was incorporated on 12 July 2021 and therefore has limited operational and financial history on which to evaluate its business and prospects. The prospects of the Company must be considered in light of the risks, expenses and difficulties frequently encountered by companies in the early stages of their development (including those set out in Section 3.2 of the Prospectus), particularly in the mineral exploration sector, which has a high level of inherent risk and uncertainty. No assurance can be given that the Company will achieve commercial viability through the successful exploration on, or mining development of, its projects. Until the Company is able to realise value from projects, it is likely to incur operational losses.

Completion of the Offers conditional on implementation of the Demerger

The Offers are conditional on the successful implementation of the Demerger. To implement the Demerger, Chalice proposes to undertake the In-specie Distribution to Eligible Chalice Shareholders for which Chalice must obtain shareholder approval. Unless more than 50% of Chalice’s shareholders vote in favour of the In-specie Distribution, Falcon will not be able to acquire the Spin-Out Projects and the Offers will not proceed. The Demerger is also subject to a number of other conditions precedent which, if not satisfied or waived, will prevent the Demerger from completing and the Company will not be able to proceed with the Offers.

Land access arrangements and native title risk

The Company will be required to negotiate access arrangements and pay compensation to land owners, local authorities, traditional land users and others who may have an interest in the area covered by a mining tenement. Access is critical for exploration and development to succeed. The Company’s ability to resolve access and compensation issues will have an impact on the future success and financial performance of Falcon’s operations.

Funding risk

Exploration and development involve significant financial risk and capital investment. Even in circumstances where the Maximum Subscription is raised, the Company may require further capital to achieve its ultimate strategy of transitioning from explorer to producer. Also, it is possible further capital may be required at an earlier stage if any risks, including those described in Section 3 of the Prospectus, materialise, or equally new and superior opportunities materialise.

Farm-in or joint venture risk

Upon completion of the Demerger, the Company will have the benefit of various earn-in arrangements with Metal Hawk Limited for which there are currently no formal joint venture agreements in place between the relevant parties. There is no guarantee that the Company will be able to negotiate formal joint venture agreements on terms favourable to the Company. The Company may also be adversely affected by the financial failure, withdrawal or default of its joint venture partner. This may have an adverse effect on the operations and performance of the Company.

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Key risks (Cont.)

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Development and operational risk

A number of factors will influence the Company’s ability to pursue its exploration, development and operational activities. These include, amongst others, the Company’s ability to obtain the necessary regulatory consents and approvals, retain or engage appropriately skilled and experienced employees, contractors and consultants, access to equipment, materials and infrastructure, as well as access to adequate capital on acceptable terms and acts beyond the control of the Company.

Geological and weather conditions, unforeseen costs, plant or equipment failures, accidents, natural disasters, pandemics, industrial disputes and/or social unrest may also interrupt operations.

Environmental risk

The Company is subject to several laws and regulations relating to the environmental impact of its current and future intended activities, including rehabilitation. There is no guarantee that necessary environmental approvals for its proposed activities will be approved in a timely manner or be forthcoming at all. Changes to environmental laws may result in the cessation or reduction of the Company’s activities or materially increase planned exploration or development costs. Penalties for failure to adhere to requirements or, in the event of environmental damage, remediation costs can be substantial.

Commodity and currency price risk

It is anticipated that any future revenues derived from mining will primarily be derived from the sale of gold. Consequently, any future earnings are likely to be closely related to the price of gold. It is impossible to predict commodity prices with confidence, which are affected by numerous factors beyond the control of the Company. A material and extended fall in gold prices will likely affect the timing and viability of the Company’s exploration, development, and production activities including its ability to fund those activities.

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International Offer Restrictions

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This document does not constitute an offer of ordinary shares of Falcon.

The Prospectus issued by Falcon dated 3 November 2021 does not, and is not intended to, constitute an offer in any place or jurisdiction, or to any person to whom, it would not be lawful to make such an offer or to issue the Prospectus. The distribution of the Prospectus in jurisdictions outside Australia, may be restricted by law and persons who come into possession of the Prospectus should seek advice on and observe any of these restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

No action has been taken to register or qualify the shares or otherwise permit an offering of the shares the subject of the Prospectus in any jurisdiction outside Australia or, to the extent permitted below, New Zealand. Applicants who are residents in countries other than Australia, should consult their professional advisers as to whether any governmental or other consents are required or whether any other formalities need to be considered and followed.

If you are outside Australia, it is your responsibility to obtain all necessary approvals for the issue of the shares pursuant to the Prospectus. The return of a completed Application Form will be taken by the Company to constitute a representation and warranty by you that all relevant approvals have been obtained.

The Prospectus has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (FMC Act). The shares are not being offered or sold in New Zealand (or allotted with a view to being offered for sale in New Zealand) other than to a person who:

• (a) is an investment business within the meaning of clause 37 of Schedule 1 of the FMC Act;

• (b) meets the investment activity criteria specified in clause 38 of Schedule 1 of the FMC Act;

• (c) is large within the meaning of clause 39 of Schedule 1 of the FMC Act;

• (d) is a government agency within the meaning of clause 40 of Schedule 1 of the FMC Act; or

• (e) is an eligible investor within the meaning of clause 41 of Schedule 1 of the FMC Act.

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Falcon Metals Limited ASX: FAL Level 3, 46 Colin Street, West Perth WA 6005 GPO Box 428 West Perth WA 6872

T: +61 8 9322 3960

E: info@falconmetals.com.au www.falconmetals.com.au