Chalice Gold Mines Limited ('Chalice' or 'the Company', ASX: CHN | OTCQB: CGMLF) is pleased to report results from its maiden diamond drill program at the 100%-owned Pyramid Hill Gold Project in the Bendigo Region of Victoria.

The maiden 10-hole diamond drill program was designed as a first-pass geological assessment of three key under cover targets generated from the Company's initial phases of shallow air-core (AC) drilling - Karri, Ironbark North and Ironbark South. All three greenfield targets were generated by Chalice and are located under 40-80m of Murray Basin cover.

Geological logging and assay results have now been finalised for all 10 holes, confirming the presence of prospective structural settings for orogenic gold deposits and, as such, further exploration is planned. In the case of the Karri Prospect, the combination of tightly folded Castlemaine Group sediments, quartz veining and a large-scale gold footprint with primary high-grade gold make it a compelling opportunity.

Forward plan

Chalice is continuing its systematic approach to gold exploration under cover in central Victoria, targeting Fosterville / Bendigo style gold discoveries. Exploration continues at Pyramid Hill in parallel with ongoing exploration programs at the Julimar Nickel-Copper-PGE Project and generative projects in Western Australia. The promising maiden diamond drill results at Karri, Ironbark North and Ironbark South Prospects demonstrate the presence of primary gold systems at relatively shallow depth, paving the way for the next stage of exploration which will be targeted towards the discovery of primary gold lodes.

The Company also plans to continue its reconnaissance exploration activities across multiple target areas to systematically explore the southern part of the Muckleford and Mt William Areas. These areas will be tested with a combination of soil geochemical sampling and/or wide-spaced reconnaissance AC drilling. The objective of the next phase of regional exploration (outside of Karri and Ironbark) is both to refine existing targets and to identify any potential new large-scale gold targets.

Contact:

Alex Dorsch

Tel: +61 8 9322 3960

Email: info@chalicegold.com

About the Pyramid Hill Gold Project, Victoria, Australia

The 100%-owned Pyramid Hill Gold Project was staked in late 2017 and now covers an area of >5,000km2 in the Bendigo region of Victoria. The Project comprises three key districts within the Murray Basin covered North Bendigo Zone: Muckleford, Mt William and Percydale. The central Muckleford Area extends to the north-west of the high-grade historic >22Moz Bendigo Goldfield. The Mt William Area extends to the north-east of one of the world's highest-grade producing gold mines, the >9Moz Fosterville Gold Mine owned by Kirkland Lake Gold (NYSE / TSX: KL | ASX: KLA). The 'Gold Undercover' initiative by the Victorian Government in 2006-2009 estimated a potential 32Moz (P50 mid-case) of undiscovered gold beneath Murray Basin cover in the Bendigo Zone. However, the vast majority of the covered area remains sparsely explored. Given there is highly variable, shallow cover over a large portion of the Project, the Company believes that there is excellent potential for the discovery of new commercially viable gold deposits.

Chalice is targeting tier-1 scale (>US$1bn NPV), high-grade gold discoveries and is currently conducting a systematic, regional-scale greenfield exploration program. The Company is utilising all available targeting tools at its disposal, including the substantial pre-existing regional geophysics database (including crustal scale 2D seismic), regional-scale soil sampling and ground geophysics. Low-cost reconnaissance air-core (AC) drilling to the top of the target basement on wide-spaced lines has been used effectively to narrow the target search space over the very large Project area. Over 700 AC holes have been completed by Chalice to date, identifying the Karri and Ironbark Prospects as well as several other secondary targets. The Company's first phase of geological diamond drilling (10 holes for 3,500m) was completed in H1 2020, which confirmed prospective geology and fertile gold systems at each of the Karri, Ironbark North and Ironbark South Prospects.

Forward Looking Statements

This report may contain forward-looking information within the meaning of Canadian securities legislation and forwardlooking 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 report and Chalice Gold Mines Limited (the Company) does not intend, and does not assume any obligation, to update these forwardlooking 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, the Company's strategy, the price of O3 Mining securities, the estimation of mineral reserve and mineral resources, the realisation of mineral resource estimates, the likelihood of exploration success at the Company's projects, the prospectivity of the Company's exploration projects, the timing of future exploration activities on the Company's exploration projects, planned expenditures and budgets and the execution thereof, the timing and availability of drill results, potential sites for additional drilling, 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 'can', 'plans', 'planning' 'promising', 'prospective', 'expects' or 'does not expect', 'is expected', 'will', 'may', 'would', 'potential', 'estimates', 'anticipates' or 'does not anticipate', 'believes', 'occur', 'suggests' or 'be achieved' 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 may include, among others, risks related to actual results of current or planned exploration activities; changes in project parameters as plans continue to be refined; changes in exploration programs based upon the results of exploration; future prices of mineral resources; possible variations in mineral resources or 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; movements in the share price of O3 Mining securities and future proceeds and timing of potential sale of O3 Mining securities, as well as those factors detailed from time to time in the Company's interim and annual financial statements, all of which are filed and available for review on SEDAR at sedar.com, ASX at asx.com.au and OTC Markets at otcmarkets.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.

(C) 2020 Electronic News Publishing, source ENP Newswire