Eritrea Zara Project

Chalice Gold Mines Limited (“Chalice” or “Company”) is pleased to announce that it intends to seek a dual listing on the Toronto Stock Exchange (“TSX”).

The Directors believe that a dual listing on the TSX will represent an important milestone in the Company’s development and will further raise the profile and status of the Company within the global investment community.

A dual listing on the TSX should provide increased liquidity to the Company’s current and future shareholders. In addition, it will provide increased access to the larger Canadian and other northern hemisphere capital markets as the Company advances its Zara Project in Eritrea through to production.

The Company has engaged Haywood Securities Inc (“Haywood”) to act as the Company’s sponsor for the intended application for the TSX listing.

INVESTMENT HIGHLIGHTS

It is proposed that the Company will maintain its existing listing on the Australian Securities Exchange (“ASX”) as its primary listing.

Whilst there will be no impact on existing shareholders, shares trading on the ASX will also be able to be traded on the TSX if shareholders elect to transfer their shares to the relevant Canadian share registry and establish an account with an appropriate stockbroker.

The Company’s Australian share registrar, Computershare Investor Services, will be able to provide further details on such procedures to interested shareholders once the listing is completed. Further information and timing in relation to the proposed application for TSX listing will be provided in due course; however, at this stage, it is anticipated application will be made in May with a view to listing shortly thereafter.

About Haywood

Haywood is a highly regarded Canadian corporate advisory and broking firm with offices throughout Canada and in London. Haywood specialises in emerging companies within the resource and energy sectors that offer high growth potential, and has an extensive network of Canadian, US and European institutional and retail investors.

Enquiries: Tim Goyder Dr Doug Jones

Executive Chairman Managing Director

Tel: +618 9322 3960 Tel: +618 9322 3960

Chalice Gold Mines Limited is an East African-focused company developing the high grade 1 million ounce Zara Project in Eritrea. Chalice has already completed a Scoping Study and is currently conducting a Feasibility Study with a targeted first production in 2011.

An aggressive exploration program for gold and base minerals is also being undertaken to rapidly expand the existing resource base in the virtually untouched, yet highly endowed Arabian-Nubian Shield.