Chalice Announces 2011 Annual Financial Statements

Thu Sep 15, 2011 7:01am EDT

* Reuters is not responsible for the content in this press release.

  PERTH, WESTERN AUSTRALIA, Sep 15 (MARKET WIRE) --
Chalice Gold Mines Limited (TSX:CXN)(ASX:CHN) is pleased to announce it
has lodged its Annual Financial Statements for the year ended June 30,
2011. A copy of the Annual Financial Statements can be found on the SEDAR
website at www.sedar.com and on the Company's website at
www.chalicegold.com.

    About Chalice

    Chalice Gold Mines Limited is focused on gold mine development and
exploration in Eritrea. It is developing, together with its 40% partner
ENAMCO (the Eritrean National Mining Corporation), the high grade, open
pit Koka Gold Deposit. The Koka Gold Deposit hosts a JORC and NI 43-101
compliant Probable Mineral Reserve of 4.6 million tonnes with a grade of
5.1 g/t gold, containing 760,000 ounces.

    The low cash operating cost of US $338/oz gold is expected to be in the
lowest quartile of global gold mine production costs. Planned mine
production will average 104,000 gold ounces per year over a 7 year mine
life.

    The Koka Gold Deposit lies within the 547 km2 Zara block of Exploration
Licenses where Chalice currently has an active drilling program underway
to test IP resistivity targets along strike from the Koka deposit.

    Chalice also holds 100% of a further 825 km2 of exploration ground
consisting of the Hurum license along strike from the Zara Licenses, and
the Mogoraib North license proximal to Nevsun's Bisha Mine. This
extensive exploration package hosts numerous, high potential, early and
advanced stage gold and base metal exploration targets. Chalice is
undertaking a systematic exploration effort on these licences with the
aim of discovering significant new deposits.

    TIM GOYDER, Executive Chairman

    Competent Persons and Qualified Person Statement

    The information in this report that relates to Exploration Results is
based on information compiled by Dr Doug Jones, a full-time employee and
Director of Chalice Gold Mines Limited, who is a Member of the
Australasian Institute of Mining and 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 of Exploration
Results, Minerals Resources and Ore Reserves, and is a Qualified Person
under National Instrument 43-101 - 'Standards of Disclosure for Mineral
Projects'. The Qualified Person has verified the data disclosed in this
release, including sampling, analytical and test data underlying the
information contained in this release. Dr Jones consents to the release
of information in the form and context in which it appears here.

    The Mineral Resource estimate was prepared by Mr. John Tyrrell who is a
Member of the Australasian Institute of Mining and Metallurgy. Mr.
Tyrrell is a full time employee of AMC and has sufficient experience in
gold resource estimation to act as Competent Person as defined in the
2004 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the JORC Code)' and was a
Qualified Person under National Instrument 43-101 - 'Standards of
Disclosure for Mineral Projects' at the date the National Instrument
43-101 was filed with the Toronto Stock Exchange. Mr Tyrrell consents to
the inclusion of this information in the form and context in which it
appears.

    The information in this statement of Mineral Reserves is based on
information compiled by Mr David Lee who is a Member of 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 and was a Qualified Person under National
Instrument 43-101 - 'Standards of Disclosure for Mineral Projects' at the
date the National Instrument 43-101 was filed with the Toronto Stock
Exchange. Mr Lee consents to the inclusion of this information in the
form and context in which it appears.

    Forward Looking Statements

    This document may contain forward-looking information within the meaning
of Canadian securities legislation and forward-looking statements within
the meaning of the United States Private Securities Litigation Reform Act
of 1995 (collectively, forward-looking statements). These forward-looking
statements are made as of the date of this document and Chalice Gold
Mines Limited (the Company) does not intend, and does not assume any
obligation, to update these forward-looking statements.

    Forward-looking statements relate to future events or future performance
and reflect Company management's expectations or beliefs regarding future
events and include, but are not limited to, statements with respect to
the estimation of mineral reserves and mineral resources, the realization
of mineral reserve estimates, the likelihood of exploration success, the
timing and amount of estimated future production, costs of production,
capital expenditures, success of mining operations, environmental risks,
unanticipated reclamation expenses, title disputes or claims and
limitations on insurance coverage. In certain cases, forward-looking
statements can be identified by the use of words such as plans, expects
or does not expect, is expected, budget, scheduled, estimates, forecasts,
intends, anticipates or does not anticipate, or believes, or variations
of such words and phrases or statements that certain actions, events or
results may, could, would, might or will be taken, occur or be achieved
or the negative of these terms or comparable terminology. By their very
nature forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied
by the forward-looking statements. Such factors include, among others,
risks related to actual results of current exploration activities;
changes in project parameters as plans continue to be refined; future
prices of mineral resources; possible variations in ore reserves, grade
or recovery rates; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or financing
or in the completion of development or construction activities; as well
as those factors detailed from time to time in the Company's interim and
annual financial statements and management's discussion and analysis of
those statements, all of which are filed and available for review on
SEDAR at sedar.com. Although the Company has attempted to identify
important factors that could cause actual actions, events or results to
differ materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results not to
be as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such
statements.

    Accordingly, readers should not place undue reliance on forward-looking
statements.

    Cautionary Note

    For readers to fully understand the information in this news release,
they should read the Technical Report for the Koka Gold Deposit dated
July 27, 2010 (available at www.chalicegold.com) in its entirety,
including all qualifications, assumptions and exclusions that relate to
the information set out in this news release which qualifies the
Technical Information. Readers are advised that mineral resources that
are not mineral reserves do not have demonstrated economic viability. The
Technical Reports are each intended to be read as a whole, and sections
should not be read or relied upon out of context. The technical
information in those reports is subject to the assumptions and
qualifications contained in the Technical Reports.


Shares outstanding: 250 million         
Fully diluted:      258 million         


Contacts:
Chalice Gold Mines Limited
Tim Goyder
Executive Chairman
+61 9322 3960

Chalice Gold Mines Limited
Dr Doug Jones
Managing Director
+61 9322 3960

Chalice Gold Mines Limited
Joanne Jobin
North American Investor Relations Manager
+1 647 964 0292
jjobin@chalicegold.com
www.chalicegold.com

For media inquiries, please contact:
Read Corporate
Nicholas Read
+618 9388 1474

For North American Investors, please contact:
Chalice Gold Mines Limited
Dan Hrushewsky
Senior Vice-President Corporate Development
+1 647 864 2735
dhrushewsky@chalicegold.com

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