Media Release: Chalice & Shire of Toodyay sign HOA for Community Fund

Media Statement

25 August 2023

Chalice & Shire of Toodyay sign HOA for Community Fund

Agreement reflects shared objective to deliver long-term benefits that flow to the local community from a potential mine development at Gonneville

Highlights

• Chalice Mining and the Shire of Toodyay have signed a Heads of Agreement (HOA) for the future establishment of the Chalice Mining Community Fund.
• The HOA establishes a framework under which Chalice and the Shire of Toodyay can plan and prioritise future spending initiatives to deliver long-term benefits and investment in the local community.
• Since the Gonneville Nickel-Copper-PGE Project (Gonneville or Gonneville Project) discovery in 2020, Chalice has already contributed ~$230,000 through its Community Investment Program and spent a further ~$3 million on goods and services with local Toodyay businesses. An additional ~$5 million has been spent by direct Chalice contractors.

Overview

Perth-based exploration and development company Chalice Mining Limited ("Chalice" or "the Company") together with the Shire of Toodyay ("Shire") are pleased to announce the signing of a landmark Heads of Agreement (HOA) for the future establishment of the Chalice Mining Community Fund.

The agreement reflects a shared objective to deliver long-term benefits to the local community from a potential mine. The Gonneville Project is located on Chalice-owned farmland within the Shire of Toodyay.

Under the terms of the HOA, Chalice has agreed to provide funding for the delivery of community projects and programs that have been identified by the Shire of Toodyay and that align with Chalice's eligibility criteria.

Eligible projects will demonstrate community development and social investment priorities that are aligned with and preserve and promote the Shire of Toodyay's Council Plan, with a focus on local employment and training outcomes as well as other initiatives that contribute to community sustainability.

This framework will also form the basis for Chalice to establish similar community funds with other neighbouring Shires in the region.

Chalice Managing Director Alex Dorsch said the HOA helped formalise the Company's strong commitment to community development and provided guidelines for Chalice to work with the Shire of Toodyay to ensure community spending delivered long-term benefits for local residents.

Registered Office

ABN 47 116 648 956

Level 3, 46 Colin Street, West Perth WA 6005, Australia

PO Box 428, West Perth WA 6872

T: [phone]

[e-mail]

www.chalicemining.com

@chalicemining chalice-mining

"We are pleased to be working with the Shire of Toodyay to establish a unique and innovative Community Fund that we believe sets a new benchmark for collaboration between local communities and mining companies," Mr Dorsch said.

"This up-front and progressive approach provides strong assurance to the local community that their needs and priorities will be addressed to deliver genuine long-term, shared benefits from a possible mine at the Gonneville Project.

"Gonneville has the potential to be a long-life asset and we want to ensure that the social and economic benefits that flow from it are appropriately channelled and shared with the local community for many decades to come.

"We're very proud of this initial first step and we look forward to progressing towards a formal agreement as the Project is defined."

Shire President, Cr Rosemary Madacsi agrees this is a milestone achievement.

"The signing of the Heads of Agreement is an important milestone in our journey to consolidate our community's future. We appreciate being able to work collaboratively with Chalice, in a way that is unprecedented in our state, to ensure that direct benefits flow to our community in the event of a mine being established in our Shire."

The completion of a formal agreement and the establishment of the Community Fund are contingent on the Chalice Board making a Final Investment Decision (FID) in favour of proceeding with a development at the Gonneville Project, and the project achieving all the necessary approvals and funding requirements.

For further information on the Gonneville Project please visit www.chalicemining.com/communityor contact:

Enquiries

Alex Dorsch

Managing Director & CEO Chalice Mining Limited [phone] [e-mail]

LinkedIn: chalice-mining

Twitter: @chalicemining

Cr Rosemary Madacsi Shire President

Shire of Toodyay

[phone] [e-mail]

Media Enquiries

Nicholas Read

Principal and Managing Director Read Corporate Investor Relations [phone] [e-mail]

ASX:CHN

Chalice Min ing Limite d 2