Chalice Gold Mines : Updated Mineral Resource for Nordeau West deposit

ABN 47 116 648 956

• Completion of maiden JORC 2012 compliant Mineral Resource estimate for the Nordeau West deposit, which falls within the recently optioned East Cadillac Gold Project in Quebec, confirms the previously released historical and foreign Mineral Resource estimate.

• The current Mineral Resource estimate includes Indicated Mineral Resources of 225,000t @ 4.17g/t Au for 30,200oz Au and an Inferred Mineral Resource of approximately 1,112,000t @ 4.09g/t Au for 146,300oz Au.

• Drilling to commence in March 2017 on Chalice's East Cadillac Project with the aim of identifying possible strike extensions to the Nordeau West deposit.

• Chalice's East Cadillac Gold Project has a contiguous ~16km strike length along the Larder Lake- Cadillac fault, is adjacent to the former producing Chimo gold mine, and lies at the eastern end of the prolific Archaean Abitibi greenstone belt, ~35km east of the >20 million oz Val d'Or gold camp.

• Maiden JORC Mineral Resource provides a solid foundation for Chalice in the multi-million ounce Abitibi Province as it embarks on an expanded exploration program.

Chalice Gold Mines Limited (ASX: CHN; TSX: CXN - "Chalice" or "the Company") is pleased to announce an updated JORC 2012 Mineral Resource estimate comprising Indicated Mineral Resources of 225,000t @ 4.17g/t Au for 30,200oz Au contained and an Inferred Mineral Resource of approximately 1,112,000t @ 4.09g/t Au for 146,300oz Au contained within the Nordeau West gold deposit, which forms part of Chalice's East Cadillac Gold Project in Quebec, Canada.

The Mineral Resource estimate is summarised below:

Table 1. Nordeau West Mineral Resource estimates

1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. These Mineral Resource estimates include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as mineral reserves. There is also no certainty

   Chalice Gold Mines Limited, Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 F: +618 9322 5800 E: info@chalicegold.com www.chalicegold.com

   that these Inferred Mineral Resources will be converted to the Measured and Indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

2. The independent Mineral Resource estimates for the Nordeau West deposit was prepared by MRB & Associates, ("MRB") of Val d'Or, Quebec and is reported and classified in accordance with the guidelines of the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code 2012).

Chalice previously reported a historical and foreign (Canadian NI 43-101) Mineral Resource estimate for the Nordeau West deposit in announcements dated 12 October 2016 and 21 October 2016 with the updated JORC 2012 Mineral Resource estimate confirming the historical estimate.

To comply with its listing on the Toronto Stock Exchange, Chalice has filed on SEDAR (www.sedar.com), a National Instrument 43-101 "Technical Report and Mineral Resource Estimate for the East Cadillac Gold Project, Val-d'Or, Quebec" dated 12 February 2017, which includes the updated mineral resource for the Nordeau West deposit. The report can also be viewed at www.chalicegold.com.

The Nordeau West deposit occurs on the Nordeau property, where Chalice has the option to earn 100% from Globex Mining Enterprises Inc. ("Globex") under the terms outlined in a previous ASX release dated 12 October 2016.

The Nordeau West deposit is one of a cluster of gold deposits and occurrences that include the historical Chimo gold mine (owned by Cartier Resources Inc. - TSX-V: ECR), located 1.5km to the west, and the Nordeau East deposit, located 2km east - all hosted by discrete structural zones in either mafic volcanics and mafic intrusives (Piche Volcanics) or along the contact of overlying Timiskaming sediments and intercalated Banded Iron Formation (see Figure 1).

Chalice is currently compiling a 3D interpreted model of the Nordeau West deposit with the aim of evaluating potential extensions to the deposit and identifying other favourable structures or contacts that have not been previously tested.

An early observation from the compilation of historical exploration data is the lack of exploration over the southern contact of the Piche Volcanics against Pontiac sediments. It is expected that this contact will be further explored through a comprehensive surface sampling program scheduled to commence in mid-May 2017.

Chalice's Managing Director, Tim Goyder, said: "The updated resource for the Nordeau West deposit provides our team with an excellent foundation to unlock the value in our newly consolidated land package in the southern Abitibi gold province. A comprehensive field program will commence shortly including high-resolution geophysics, surface geochemistry and diamond drilling, with an initial program of drilling to test immediate strike extensions of the Nordeau West deposit itself.

"Future drilling will be designed to test a combination of targets, including the down-plunge extension of the Nordeau West deposit, where only a few historic holes extend more than 600m below surface. Similar potential is envisioned for the Nordeau East zone, located approximately 1km along strike to the east, and elsewhere along the remaining 16km prospective strike length within the property, where the majority of drilling to date has been within

~250m of surface.

"We are very optimistic about the potential of this relatively underexplored segment of the Larder Lake-Cadillac fault and look forward to commencing the upcoming exploration program."

2

Figure 1. Local geology, gold deposits and occurrences, East Cadillac Gold project.

About the Mineral Resource

The Mineral Resource estimate was prepared using a database incorporating 121 surface diamond drill holes (41,278m) drilled between 1981 and 2008, 96 historical drill holes (27,744m) drilled in early campaigns and 25 more recent diamond drill holes (13,352m) drilled between 2006-2008.

Indicated and Inferred Mineral Resources have been delineated within two domains in the Nordeau West deposit covering an area 775m in length by 100m in width by 650m deep.

A gold price of US$1,250/oz and a corresponding exchange rate of CDN$/US$ of 1.1 was utilized in the Au cut-off grade calculations of 2.75 g/t for a potentially economic underground mining operation. A mining cost of C$115/t, and process cost of C$30/t was used to constrain the resource estimate. No considerations were made for mining dilution, process recovery, smelter payability, or gold refining.

3

Figure 2. 3D view of mineraliased zones at Nordeau West deposit - looking down-dip

4