ASX: CHN
Development targeted for 2011
• 104,000 oz per year producer• Huge exploration upside•

Building an African Gold Mining Powerhouse
Africa Down Under
September 2010www.chalicegold.com

Disclaimer and Competent Persons Statement
This presentation may contain value references and "forward looking statements“ which are subject to various risks anduncertainties that could cause actual results and future events to differ materially from those expressed or implied bysuch statements. Investors are cautioned that such statements are not guarantees of future performance and results.
This presentation does not include all available Information on Chalice Gold Mines Limited and should not be used inisolation as a guide to investing in the Company. Any potential investor should also refer to Chalice Gold Mines Limited
Annual Reports and to ASX releases and take independent professional advice before considering investing in theCompany.
For further information about Chalice Gold Mines Limited, visit the website at www.chalicegold.com
The information in this report that relates to Exploration Results is based on information compiled by Dr Doug Jones, afull-time employee and Director of Chalice Gold Mines Limited, who is a Member of the Australasian Institute of Miningand Metallurgy and is a Chartered Professional Geologist. Dr Jones has sufficient experience in the field of activity being
reported to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting ofExploration Results, Minerals Resources and Ore Reserves, and consents to the release of information in the form andcontext in which it appears here.
The Mineral Resource estimate was prepared by Mr. John Tyrrell who is a Member of the Australasian Institute ofMining and Metallurgy. Mr. Tyrrell is a full time employee of AMC and has sufficient experience in gold resourceestimation to act as Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves (the JORC Code)'. Mr. Tyrrell consents to the inclusion of thisinformation in the form and context in which it appears.
The information in this statement of Ore Reserves is based on information compiled by Mr David Lee who is a Memberof the Australasian Institute of Mining and Metallurgy and a full time employee of AMC. Mr Lee has sufficient relevant
experience to be a Competent Person as defined in the JORC Code. Mr Lee consents to the inclusion of this informationin the form and context in which it appears.

Chalice Snapshot
Emerging African gold company – Zara Project, Eritrea
Open pit - 760,000oz Ore Reserve @ 5.1g/t Au

Average production: 104,000oz pa from Koka Gold Deposit
US$338/oz cash operating costs
Mine development targeted to commence in 2011
Outstanding near-mine exploration upside in 6km long mine
corridor
Major regional exploration programs underway including drilling,geophysics and geochemistry
Substantial regional ground position
New key player in the world-class Arabian-Nubian Shield3What Have We Achieved?

4

Where is Eritrea?

5The Arabian Nubian Shield
Zara Project is located withinsouthern Arabian-Nubian Shield –the exciting new place to be
AN Shield gold endowment +20Moz– numerous deposits and mines
dating back to ancient times
Minimal modern exploration
New world-class projects being
developed:
14Moz Sukari Gold Mine (Egypt)– in production (Centamin)
Bisha Gold & Base Metal Mine(Eritrea), 1Moz gold, 750Mlbs
copper, 1Blbs zinc, 9Moz silver –under construction (Nevsun)
6

Zara Project Location

7

Koka – Outstanding Returns, Outstanding Potential

8

Koka – Outstanding Returns, Outstanding Potential
Average gold production~104,000 oz per annum

Life of mine

~ 7 years

Total capital costs

US$122 million

Total cash costs

US$338 per oz

Total gold mined

760,000 oz

Gold recoveries

96.2%

Gold produced

720,000 oz

Plant capacity

Ca. 700,000 tpa

Open pit strip ratio

10.4

Life of Mine EBITDA(@US$1200)
Payback period(@US$1200)
9US$589M
2.1 years

Koka Gold Deposit
Quartz stockwork system inmicrogranite
JORC-compliant Indicated Resourceof 5.0Mt @ 5.3 g/t Au for 840,000oz
gold
Probable reserve – 4.6Mt @ 5.1g/t
Based on results from 137 diamond
drill holes (~21,000m drilled)~600m strike length, 20-30m wide

Bulk of resource shallower than 150m
depth

10Category

Lower grade
cut-off(G/t Au)

Tonnes(Mt)

Grade (g/tAu)

ContainedGold (Oz)

Indicated
Resource

1.2

55.3

840,000

ProbableReserve

1.2

5.1

760,0005.1

760,000

Chalice – Exceptional Exploration Upside
Near Mine:
Intensive exploration underway within highly
prospective 6km long Koka-Konate corridor
Regional:~20,000 sq km of highly prospective
tenements & applications in Eritrea
Stream BLEG sampling north-west of Koka
reveals potential for mineralisation over
10km strike
Regional airborne radiometric & magnetic
survey planned for Q4 – 12,700 line km
11Near–Mine Targets
Multiple structures withalteration and artisanal
workings:
Konate – artisanal workings
on quartz stockwork – drillingin progress
Koka South – untested IP
resistivity target
Fah – extensive quartz
stockwork within 4 km x 0.8
km alteration zone – drilling
plannedDeep penetration 3D IP survey
to cover 6 x 1.5 km corridor
All within trucking distance of
Koka plant
122 kmKonate13

KonateZone of intensive artisanal workings
5km south of Koka:
Koka-style quartz veinstockwork in silica-sericite
altered microgranite
Diamond drilling underway
Significant quartz veining withsulphides intersected
Assays pending

14

Koka South Gradient IP Resistivity Anomaly
Strong IP resistivity anomaly
identified 200-500m south ofKoka

Koka Main
Resistivity Anomaly

Koka-style alteration systemopen to south
Main anomaly remains untested
3D IP planned before furtherdrilling
Koka South ResistivityAnomaly

15Regional Geochemical SamplingFirst pass BLEG drainage
geochemistry completedResults reveal numerous highorder anomalies on Zara andZara North properties
Follow up sampling underway
to determine sources ofanomalies

16Corporate Snapshot
Board
Tim Goyder (Executive Chairman)
Dr Doug Jones (Managing Director)
Mike Griffiths (Executive Director)
Anthony Kiernan (Non-Executive)
Stephen Quin (Non-Executive)

Senior Management
Steven Chadwick Project Studies Manager
Richard Hacker(adj. for rights issue)

CFO

Dr Harry Wilhelmij Exploration Manager

Shares on Issue - 211M

Dr Brett Davis

Options on Issue – 13.075M

Chief Geologist

Yohannes Samuel Administration Eritrea
17

Capital Structure

Cash – A$16M

Comparative Valuations

EV / Reserves
503

500

400

300

200100

Kentor

1.

18

Banro

Chalice

CrewAdamus

Troy

AvosetMineralBased on fully diluted shares of 222 million (post capital raising and options exercise) and adjusted cash balances (post capital raising and options exercise)

Centamin

PerseusArabian-Nubian Shield Gold Companies

Market Cap AU $m

3200
2800
2400
2000
1600
1200
800

4000Chalice

19Citadel

NevsunCentaminSummaryKoka Gold Deposit:
Strong economics

Low technical risk
Permitting process commenced
Aggressive exploration programs
underway to expand resource base
Extensive ground position in highly
prospective gold & base metal
province
TSX Listing imminent20

ASX: CHN
Development targeted for 2011
• 104,000 oz per year producer• Huge exploration upside•

Building an African Gold Mining Powerhouse
Africa Down Under
September 2010www.chalicegold.com