Chalice Mining : Exceptional High-Grade Extensional Results at Julimar

ASX Announcement

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2 May 2022

Exceptional high-grade extensional results at Julimar

Step-out drilling continues to extend high-grade zones outside the Gonneville Resource while initial results at Hartog reveal a prospective intrusive sequence

Highlights

• « Wide-spaced step-out drilling is continuing at Gonneville, focused on expanding the high-grade, in-pit, indicated and inferred Resource (74Mt @ 1.8g/t 3E1, 0.22% Ni, 0.21% Cu, 0.021% Co (~1.0% NiEq2)3 into an underground category, as well as potentially increasing the size of the Resource pit shell.

• « New high-grade (>0.6% NiEq) extensional results, up to ~260m beyond the limit of the current Gonneville Resource pit shell, to be included in the upcoming Resource update in June:

  • « 3m @ 10.9g/t 3E, 1.0% Ni, 1.0% Cu, 0.06% Co (5.6% NiEq) from 653m (JD220W2);

  • « 16.4m @ 5.4g/t 3E, 0.5% Ni, 1.3% Cu, 0.03% Co (3.4% NiEq) from 667.9m (JD220W1) incl: « 6.1m @ 11.5g/t 3E, 1.0% Ni, 0.4% Cu, 0.06% Co (5.4% NiEq) from 667.9m; and « 3.8m @ 2.9g/t 3E, 0.5% Ni, 4.7% Cu, 0.04% Co (4.7% NiEq) from 677m;

  • « 3.4m @ 5.3g/t 3E, 1.0% Ni, 0.4% Cu, 0.07% Co (3.3% NiEq) from 661.7m (JD220W1) incl: « 2.2m @ 7.8g/t 3E, 1.6% Ni, 0.6% Cu, 0.10% Co (4.8% NiEq) from 661.7m;

  • « 9.1m @ 4.4g/t 3E, 0.7% Ni, 0.3% Cu, 0.04% Co (2.6% NiEq) from 631.9m (JD220W2) incl: « 5.1m @ 7.1g/t 3E, 1.2% Ni, 0.4% Cu, 0.07% Co (4.3% NiEq) from 631.9m;

  • « 12m @ 4.1g/t 3E, 0.5% Ni, 0.2% Cu, 0.03% Co (2.2% NiEq) from 633m (JD220W1);

  • « 4m @ 5.6g/t 3E, 0.1% Ni, 0.1% Cu, 0.01% Co (1.9% NiEq) from 552m (JD258);

  • « 7.6m @ 3.6g/t 3E, 0.2% Ni, 0.1% Cu, 0.02% Co (1.5% NiEq) from 382.4m (JD250);

  • « 14m @ 3.2g/t 3E, 0.1% Ni, 0.1% Cu, 0.01% Co (1.3% NiEq) from 567m (JD258);

  • « 26.9m @ 2.2g/t 3E, 0.2% Ni, 0.3% Cu, 0.02% Co (1.2% NiEq) from 430.1m (JD258).

• « Step-out drilling is underway within the ~500m gap between holes JD258 and JD220W2 highlighted above and all zones intersected remain open down-dip.

• « Exceptional intersection at the northern base of Gonneville Resource pit-shell highlights the potential to deepen the pit-shell - 16m @ 10.2g/t 3E, 0.2% Ni, 0.4% Cu, 0.02% Co (4.1% NiEq) from 330m (JD250).

• « Several narrow intervals of ortho-magmatic nickel-copper sulphides intersected in mafic-ultramafic rocks at the Hartog target - a highly encouraging indication of prospectivity:

  « Eight of 70+ planned sites have been drilled at Hartog to date, all targeting lower priority targets while access is restricted to existing tracks only.

• 1 3E = Palladium (Pd) + Platinum (Pt) + Gold (Au), with an average in-situ ratio of ~4:1:0.04 (Pd:Pt:Au)

• 2 NiEq (Nickel Equivalent %) = Ni (%) + 0.37xPd (g/t) + 0.24xPt (g/t) + 0.25xAu (g/t) + 0.65xCu (%) + 3.24xCo (%)

• 3 Refer to full 9-Nov-21 Mineral Resource Statement in Appendix B

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Level 3, 46 Colin Street, West Perth

WA 6005, Australia

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PO Box 428, West Perth WA 6872

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@chaliceminingchalice-mining

Overview

Chalice Mining Limited ("Chalice" or "the Company", ASX: CHN | OTCQB: CGMLF) is pleased to provide 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.

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Exploration activities are continuing across the >30km long Julimar Complex, with most activity currently focused on the Gonneville PGE-Ni-Cu-Co-Au Deposit at the southern end of the Complex (Gonneville Indicated and Inferred Mineral Resource Estimate of 330Mt @ 0.94g/t Pd+Pt+Au (3E), 0.16% Ni, 0.10% Cu, 0.016% Co, refer to Appendix B).

Initial early-stage exploration continues at the Hartog, Jansz and Torres targets to the north of Gonneville, however access for exploration remains restricted across large parts of the Complex.

Five diamond rigs and one RC rig are currently continuing step-out, infill and metallurgical drilling at Gonneville. A combined total of 870 diamond and RC drill holes for ~220,000m and 643 AC drill holes have been completed at the Project to date.

New assay results have been received for 78 RC/diamond holes at Gonneville which were not included in the maiden Resource published in November 2021 and four complete and two partial diamond holes at Hartog. New assay results have been received for drilling targeting:

• « Down-dip and down-plunge extensions of the high-grade G2 zone;

• « Down-plunge extensions of the high-grade G4 zone;

• « Infill of shallow (<250m deep) Resources currently classified as Inferred;

• « Discrete geophysical targets east of Gonneville; and

• « Lower-priority targets in the Hartog area.

Drilling has extended the high-grade (>0.6% NiEq) sulphide zones beyond the Gonneville Resource pit shell. Importantly, sulphide mineralisation has now been extended up to 400m below the limit of the Gonneville Resource pit shell, which indicates the potential for material growth into a future underground resource category.

Eight holes have been completed to date at lower priority targets (due to access constraints) within the ~6.5km x 2.0km Hartog area immediately north of Gonneville, with assays pending for four holes. A total of 70 drill sites are planned to be tested across the Hartog-Dampier area with drilling expected to continue and accelerate over the coming months as the geological model continues to be refined and permits are obtained for off-track drilling locations.

Assay results are pending for a further 55 completed drill holes at Gonneville and Hartog, with laboratory turnaround times currently averaging approximately eight weeks.

A program of infill moving loop EM (MLEM) also continues across the Julimar Complex.

Chalice Managing Director and Chief Executive Officer, Alex Dorsch, said: "With each new round of drilling results, the scale, quality and potential upside of this world-class critical minerals system just keeps getting better and better. Notwithstanding the district-scale opportunity that exists along the >30km Julimar Complex to the north, these latest drill results from Gonneville have reminded us of the obvious growth potential just at Gonneville itself.

"Targeted drilling outside the November 2021 Mineral Resource pit shell has intersected extensive intervals of high-grade mineralisation that will be included in our next Resource update, which is on track to be delivered in June. This bodes well for the potential to expand the current high-grade in-pit Resource.

"One of the key emerging developments at Gonneville is that the high-grade extensions we are delineating at depth continue to confirm the emerging underground potential which is likely to be a key growth avenue for us into the future. Importantly everything we drill at depth continues to remain open.

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"Our initial strategy will be to define Inferred Resources at depth to assist in determining the potential opportunity for a future underground mining operation, before upgrading these with in-fill drilling to Indicated Resources to underpin future underground mining studies.

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"The indications from our recent drilling are that Gonneville has the potential to be a very long life open-pit and underground mine, without taking into consideration anything we may find at our exciting targets along the Julimar Complex to the north.

"Our drilling to the north is still restricted by access constraints which we hope are resolved soon, however we are also very excited to see tantalising indications of an emerging mineralised system at the Hartog target, with several narrow intervals of ortho-magmatic nickel-copper sulphides observed in the right mafic-ultramafic rocks in recent drilling.

"This is an exciting development and the recent results reinforce the potential of the northern targets, which we plan to drill as our exploration effort expands."

Technical discussion

Gonneville extensional drilling results

Targeted drilling outside the Gonneville Resource pit shell (9 Nov 2021) has intersected extensive intervals of sulphide mineralisation. Significant high-grade (>0.6%NiEq) sulphide intersections from three broadly spaced wedge holes have defined an area of continuous high-grade mineralisation extending 170m down-plunge, beneath the current Resource pit(Figure 1andFigure 2).

JD220W1, drilled the furthest down plunge, intersected three zones of high-grade mineralisation; « 12.0m @ 3.4g/t Pd, 0.7g/t Pt, 0.0g/t Au, 0.5% Ni, 0.2% Cu, 0.03% Co (2.2% NiEq) from 633m; « 3.4m @ 3.7g/t Pd, 1.6g/t Pt, 1.0% Ni, 0.4% Cu, 0.07% Co (3.3% NiEq) from 661.7m, including; « 2.2m @ 5.3g/t Pd, 2.5g/t Pt, 1.6% Ni, 0.6% Cu, 0.10% Co (4.8% NiEq) from 661.7m;

«

16.4m @ 4.4g/t Pd, 0.9g/t Pt, 0.1g/t Au, 0.5% Ni, 1.3% Cu, 0.03% Co (3.4% NiEq) from 667.9m, including; « 6.1m @ 9.3g/t Pd, 2.1g/t Pt, 0.1g/t Au, 1.0% Ni, 0.4% Cu, 0.06% Co (5.4% NiEq) from 667.9m and; « 3.8m @ 2.6g/t Pd, 0.2g/t Pt, 0.1g/t Au, 0.5% Ni, 4.7% Cu, 0.04% Co (4.7% NiEq) from 677m.

In addition, an extensive zone of disseminated mineralisation was intersected in JD220W1:

«

105.0m @ 0.6g/t Pd, 0.2g/t Pt, 0.2% Ni, 0.1% Cu, 0.02% Co (0.6% NiEq) from 702m;

A second wedge hole, JD220W2, intersected two zones of high-grade mineralisation ~100m south-east of the high-grade JD220W1 intersections:

• « 9.1m @ 4.1g/t Pd, 0.3g/t Pt, 0.7% Ni, 0.3% Cu, 0.04% Co (2.6% NiEq) from 631.9m, including; « 5.1m @ 6.6g/t Pd, 0.5g/t Pt, 1.2% Ni, 0.4% Cu, 0.07% Co (4.3% NiEq) from 631.9m;

• « 3m @ 8.3g/t Pd, 2.2g/t Pt, 0.4g/t Au, 1% Ni, 1% Cu, 0.06% Co (5.6% NiEq) from 653m (JD220W2).

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Figure 1. Gonneville 3D View (looking east-north-east) - key extensional drill results, sulphide Resource blocks (>0.8% NiEq only shown) and pit shell.

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Figure 2. Gonneville 3D View (looking north) - key extensional drill results, sulphide Resource blocks (>0.8% NiEq only shown) and pit shell.

Chalice Mining Limited