Chalice Gold announces change to its Board of Directors

Symbol:  ASX: CHN TSX:  CXN

Shares outstanding: 250 million

Fully diluted: 258 million

PERTH, Western Australia, Nov. 21, 2011 /PRNewswire/ – Chalice Gold Mines (ASX: CHN; TSX: CXN) advises its Directors have been considering the composition of its
Board as the Company moves to development of its Zara Gold Project in
Eritrea and following execution of the Mining Agreement with the
Government of Eritrea.

These considerations have taken account of the need for an appropriate
balance between independent and non-independent directors and general
governance practices.  As the Company goes forward the Directors
consider there is a need to address this balance.

Amongst the resolutions proposed at the Company’s AGM (to be held
Tuesday 22 November 2011) were resolutions for the re-election of
Michael Griffiths (previously an executive director) and Juan Jeffery,
the Chief Operating Officer of the Company. To maintain an appropriate
balance of independent and non-independent directors, Resolutions 3 and
4 respectively for the re-election of Messrs Griffiths and Jeffery will
be withdrawn with both directors stepping down. The Company will then
seek to further address its Board composition and the need to attract
independent directors.

It should be noted that Mr Jeffery will remain the Chief Operating
Officer of the Company principally responsible for the development of
the Zara Project and Mr Griffiths will consult to the Company from time
to time in relation to its Eritrean Gold Projects.

Mr. Griffiths was previously the Managing Director of Sub Sahara
Resources, which merged with Chalice in 2008 and has been instrumental
in the development of the Eritrean project. His contribution to the
Company and the project has been considerable and Chalice recognises
and thanks him for this.

About Chalice

Chalice Gold Limited is an exploration and development company which
owns a 60% beneficial interest in the high grade, open-pittable Koka
Gold Deposit and a substantial, largely unexplored, land package in
Eritrea. The Koka Gold Deposit consists of an “in-pit” JORC and NI
43-101 compliant Indicated Mineral Resource of 5.0 million tonnes
grading 5.3 grams of gold per tonne, containing 840,000 ounces of gold.
This Mineral Resource includes a Probable Mineral Reserve of 4.6
million tonnes grading 5.1 grams of gold per tonne, containing 760,000
ounces of gold. The Company is focused on developing the Koka Gold
Deposit into a low cost gold mine which is expected to produce 104,000
ounces of gold per year over a 7 year mine life at an average cash cost
of US$338/oz gold (refer to the 43-101 Technical Report on the Koka
Gold Deposit, Eritrea dated 27 July 2010). Chalice also holds a
substantial strategic ground position of 1,372 km(2) consisting of licences along strike of the Koka Gold Deposit, and
proximal to Nevsun’s Bisha Mine. These exploration concessions host
numerous, high potential, early and advanced stage gold and base metal
exploration targets. Chalice is undertaking a systematic exploration
effort on these exploration concessions with the aim of discovering
significant new deposits.

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 and gold; 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; imposition of trade embargos or sanctions; 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 Report is intended to be
read as a whole, and sections should not be read or relied upon out of
context. The technical information in the report is subject to the
assumptions and qualifications contained in the Technical Report.

SOURCE Chalice Gold Mines Limited