Chalice Gold Mines : Chairman's Address to Shareholders

ABN 47 116 648 956

Good morning ladies and gentleman,

My name is Anthony Kiernan and I am the Chairman of Chalice Gold Mines Limited.

The past year has been a positive and progressive period for Chalice against the backdrop of a marked improvement in market sentiment and conditions for the commodities sector generally.

Key highlights for the past 12 months have included:

• A renewed focus and investment in exploration;

• A growing exploration portfolio within Tier-1 mining and exploration districts both in Canada and Australia - including the acquisition of the highly prospective East Cadillac Project in Quebec;

• The commencement of an extensive drilling program across four key projects;

• The preservation of our strong balance sheet position; and

• The continued growth of our in-house technical and management team.

The recent improvement in market conditions is timely, and I believe Chalice is well positioned to reap the rewards from its renewed focus on exploration at a time when risk appetite has returned to this end of the resources sector, and companies are finally being rewarded for exploration success.

After several years of searching for development assets capable of meeting our acquisition criteria, we refined our strategy earlier in the year to place greater emphasis on exploration and organic growth opportunities in Australia and Canada.

Our current exploration portfolio now spans prospective and well-endowed gold and base metal belts in Canada and Australia, including some of the world's most active provinces for exploration, such as the prolific Abitibi district in Quebec.

In Canada, our portfolio now includes The East Cadillac Gold Project in Quebec, an outstanding exploration and growth opportunity located within one of the world's premier gold belts - the Larder Lake - Cadillac Fault, a district with a gold endowment of more than 100 million ounces.

The initial leases were acquired in October 2016 and our land-holding has increased steadily through various acquisitions over the period. The project has been rapidly progressed, including a comprehensive sampling and geophysical program over the entire project area and the definition of a maiden resource estimate at Nordeau West earlier this year. A significant drilling program is currently underway and the project remains the major focus of our exploration effort.

Also in Canada is The Kinebik Gold Project which covers a significant strike length of the Casa Berardi Fault in Quebec, a structure that hosts multiple gold deposits.

In Australia, through a combination of strategic joint ventures, option agreements and selective ground acquisitions, our portfolio now includes the West Pilbara Gold-Copper Project, the Warrego North Copper-Gold Project and the Latitude Hill Nickel Project.

Given our strong balance sheet and the depth of our in-house technical team, Chalice has the benefit of being able to pursue a comprehensive, mid-tier scale exploration effort across our portfolio of projects without diluting our shareholders at either the company or project level.

A significant exploration initiative is currently in full swing across these projects. This includes a 7,700m diamond drilling program at East Cadillac and the recently completed 9,200m RC and Aircore drilling program at our West Pilbara Project. Tim and Kevin will give you further details of these programs, as well as an exploration update on our other projects, in their presentation later in the meeting.

With exploration activities underway, we are optimistic about the Company's prospects over the coming 12 months - and I can assure you that we will be working hard to ensure that the quality and potential of the Company's projects is properly reflected in our share price.

We also continue to proactively evaluate acquisition opportunities, and we have recently refined our approach in this regard to focus on growth opportunities within our current regional footprint. We acknowledge the high degree of competitiveness in the marketplace, however your board will react quickly to the right opportunity while maintaining a disciplined approach at all times.

On the corporate front, the Company has a strong balance sheet, currently holding approximately A$48 million in cash and liquid assets. During and since the end of the year, the Company has realised significant value as a result of the sale of the Cameron Gold Project in 2016 by selling 32.3 million shares in First Mining Finance for proceeds of approximately C$25 million.

As part of its capital management strategy, the Company also acquired 21.5 million of its own shares as part of an on-market discretionary share buy-back.

Under the leadership of our Managing Director, Tim Goyder, the Company has demonstrated a disciplined and focused approach to the management of our finances and key projects, while demonstrating a preparedness to undertake aggressive exploration and to move quickly to take advantage of corporate or investment opportunities when they present themselves.

As always, a results-driven approach is being taken to exploration and evaluation.

In conclusion, I would like to take this opportunity to thank our shareholders, fellow directors and all employees both in Australia and Canada for their continued and valued support during the past year.

Anthony Kiernan Chairman

Tim Goyder, Managing Director Chalice Gold Mines Limited Telephone +61 9322 3960

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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 results of business development activities which may result in a corporate transaction or investment, the likelihood of exploration success at the Company's Australian and Canadian exploration projects, the quantum of number of metres drilled, 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, expects or does not expect, is expected, will, may would, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, 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 project parameters as plans continue to be refined; 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.

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