ASX ANNOUNCEMENT 21 SEPTEMBER 2016 CLARIFICATION ANNOUNCEMENT

Further to the ASX announcement dated 20 September 2016, titled "Chalice and Red Hill to explore highly prospective WA gold exploration opportunity through farm-in agreement over West Pilbara Gold Project", please see below drill hole results for the Urandy gold prospect in accordance with ASX Listing Rule 5.7.2.

Hole Id

Prospect

MGA

East

MGA

North

Dip

Azimuth

Depth (m)

Significant (0.2 g/t) Gold Results

From (m)

To (m)

Interval (m)

Grade (g/t)

RCW004

Urandy

423504

7537754

-60

90

80

No significant assays

RCW005

Urandy

423450

7537750

-60

90

100

15

20

5

0.15

RCW006

Urandy

423473

7537701

-60

90

100

14

23

9

1.79

RCW007

Urandy

423425

7537703

-60

90

95

46

55

9

4.52

RCW008

Urandy

423497

7537659

-60

90

100

No significant assays

RCW009

Urandy

423448

7537654

-60

90

85

41

45

4

0.80

RCW010

Urandy

423520

7537600

-60

90

70

23

25

2

0.82

RCW011

Urandy

423550

7537494

-60

90

75

No significant assays

RCW012

Urandy

423503

7537503

-60

90

100

No significant assays

RCW013

Urandy

423458

7537484

-60

90

105

No significant assays

RCW014

Urandy

423476

7537597

-60

90

90

40

45

5

0.27

RCW015

Urandy

423426

7537602

-60

90

100

No significant assays

RCW016

Urandy

423325

7537702

-60

90

200

No significant assays

RCW017

Urandy

423294

7537751

-60

90

130

No significant assays

RCW018

Urandy

423325

7537648

-60

90

185

No significant assays

RCW019

Urandy

423348

7537600

-60

90

165

No significant assays

RCW020

Urandy

423388

7537752

-60

90

100

53

57

4

0.28

TIM GOYDER NEIL TOMKINSON

Managing Director Chairman

Chalice Gold Mines Limited Red Hill Iron Limited

For further information, please contact: Tim Goyder, Managing Director

Chalice Gold Mines Limited Telephone +618 9322 3960

For further information, please contact: Neil Tomkinson, Chairman

Red Hill Iron Limited Telephone +618 9481 8627

Competent Persons and Qualifying Persons Statement

The information in this report that relates to Exploration Results in relation to the West Pilbara Gold Project is based on information compiled by Dr Kevin Frost BSc (Hons), PhD, who is a Member of the Australian Institute of Geoscientists. Dr Frost is a full-time employee of the company and has sufficient experience in the field of activity being reported to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and is a Qualified Person under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'. The Qualified Person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release. Dr Frost consents to the release of information in the form and context in which it appears here.

2

Chalice Gold Mines Limited published this content on 21 September 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 September 2016 02:33:05 UTC.

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