CHALICE MINING LIMITED — M&A Activity 2009

Jun 1, 2009

Tuesday, 2 June 2009

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ASX Announcement

Scheme Booklet and Loan Facility

Sub-Sahara Resources Limited (Sub-Sahara) (ASX: SBS) advises that the Scheme Booklet in relation to the proposed merger with Chalice Gold Mines Limited (Chalice) (ASX: CHN) has today been lodged with the Australian Securities and Investments Commission for its review.

Loan Facility

A loan facility of $450,000 has also been made available to Sub-Sahara by Chalice to be used by Sub-Sahara to fund further development of the Zara Project (Koka Deposit) pending implementation of the proposed merger. The funds will be used to advance time-critical elements of the pre-feasibility and feasibility studies as set out in the recent license renewal notification.

The terms and conditions of the loan are:

• A$450,000 interest free until 1 September 2009, thereafter at the ANZ rate for overdrafts over $100,000 plus 3%;

• Repayable if the Scheme of Arrangement is not completed by 30 September 2009, or such other date as CHN may agree, acting reasonably;

• Repayment in cash or shares (at the election of Sub-Sahara) and if Sub-Sahara elects cash, the repayment date may be extended by up to 90 days;

• The shares would be issued at the price determined at the time of announcing the merger being 1.3cents;

• The funds will be paid into a special purpose account operated jointly by Sub-Sahara and CHN; and

• The loan would be secured by a charge over Sub-Sahara.

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For and on behalf of Sub-Sahara Resources NL

M.R. Griffiths

Managing Director

For further information please e-mail Michael Griffiths via email enquiries@subsahara.com.au or by phone on 61-8-9227 3260

Competent Person

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr M R Griffiths, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Griffiths is a full-time employee of Sub-Sahara Resources NL. Mr Griffiths has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Griffiths consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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