Chalice Mining Limited provided an update on exploration activities at its 100%-owned Julimar Nickel-Copper-Platinum Group Element (PGE) Project, located ~70km north-east of Perth in Western Australia. Exploration activities are continuing across the >30km long Julimar Complex, with two diamond drill rigs currently drilling across the ~10km long Hartog-Baudin strike length and four rigs continuing resource drilling at the Gonneville PGE-Ni-Cu-Co-Au Deposit current Mineral Resource Estimate of 350Mt @ 0.96g/t 3E, 0.16% Ni, 0.10% Cu, 0.015% Co (~0.58% NiEq or ~1.8g/t PdEq) 3. Reconnaissance drilling has intersected sulphide mineralisation in all holes drilled into the Julimar Complex to date over a strike length of ~10km. Several wide-spaced holes drilled at the Hooley Prospect, located ~5km north of Gonneville, have intersected PGE-dominant sulphide mineralisation, which is considered a highly encouraging early result.

The host intrusion at Hooley has similar mafic to ultramafic geology and litho-geochemistry to Gonneville and, on this basis, it is inferred to be a continuation of the `chonolith'-like Julimar Complex. Wide-spaced reconnaissance and step-out drilling is continuing at the Hartog, Hooley and Dampier Prospects over a strike length of ~10km. Several large (~5km) sections of the Julimar Complex strike length remain untested between these areas.

Drilling to date supports the interpretation of the Gonneville Intrusion (and the broader Julimar Complex) as having a rare chonolith-like geometry, which is similar to other major ultramafic-mafic orthomagmatic systems worldwide that host some of the world's largest nickel-copper+/-PGE deposits, including Norilsk-Talnakh and Jinchuan (Barnes et al, 2016 4). Chalice's strategy at Julimar is to advance development studies and regulatory approvals for a potential mine at Gonneville (on Chalice-owned farmland), in parallel with ongoing exploration activities across the full >30km extent of the Julimar Complex. Exploration will continue along the Complex targeting extensions to known mineralised zones as well as potential new shallow high-grade zones.

It is also possible that different styles of mineralisation (or higher-grade mineralisation) could be intersected along the complex, potentially contributing to the significant long-term value-creation that a world-class mineral district can create. Chalice's ongoing exploration drilling program in the Julimar State Forest is utilising specialist diamond drill rigs with a small footprint and does not involve any mechanised clearing of vegetation or excavation. Comprehensive flora, fauna and cultural heritage surveys and monitoring are being undertaken according to industry best practice.

The low-impact exploration program is strictly governed by a Conservation Management Plan (CMP) approved by the WA Government in late 2021. Reconnaissance exploration drilling along the Julimar Complex has intersected significant PGE-nickel-copper-cobalt-gold mineralisation at the Hooley Prospect, located ~5km to the north of the Gonneville Deposit. Drill holes HD052, HD054 and HD055 were drilled from the same site, while HD050 was drilled along strike from a site ~500m to the north-east.

HD047 was drilled from a site ~1.8km along strike of HD055 to the north-east. Significant new drill intersections from these holes include: « 40m @ 1.6g/t 3E, 0.2% Ni, 0.2% Cu, 0.02% Co (0.9% NiEq) from 142m (HD055), incl: The PGE-dominant mineralisation at Hooley shows a similar sulphide style and geological setting to that of the Gonneville Deposit, which comprises broad zones of disseminated pyrrhotite +/- chalcopyrite +/- pentlandite (1-5%vol sulphides) with localised matrix style sulphides (<30% vol sulphides). The host intrusive has similar mafic to ultramafic geology and litho-geochemistry to the Gonneville intrusion and therefore is inferred to be a continuation of the `chonolith'-like Julimar Complex.

Due to drill site access restrictions, several holes have been drilled from each site and therefore not all holes have been drilled orthogonal to the interpreted dip and strike of the mineralisation. The true width of the mineralised zones in these holes is unknown but is likely to be between 70-90% of the downhole width. HD050 and HD055 are the deepest holes on their respective drill sites and both holes contain a higher- sulphide content compared with up-dip holes.

HD055 also intersected a second zone of weakly mineralised gabbro ~80m below the footwall contact of the Julimar Complex . This intrusive unit has not been intersected in any of the up-dip holes and therefore needs further drilling to understand its significance. While the results are considered promising, geology and mineralisation is variable between holes completed to date.

Results are pending for a further nine holes drilled from these two sites and downhole EM is currently underway in order to refine step-out drilling targets.