Last updated on April 18, 2014 at 6:46 EDT

Capital Reduction and Return

December 4, 2012

Shares outstanding: 250 million
Fully diluted: 255 million

PERTH, Western Australia, Dec. 4, 2012 /CNW/ – Chalice Gold Mines Limited (ASX: CHN/TSX: CXN) advises that Shareholders have approved a capital return and reduction
of A$0.10 (or ~C$0.104) per ordinary share of the Company.  The key
dates with respect to the special distribution are:

    Ex-distribution date   December 4, 2012 (Perth time)

                           December 5, 2012 (Toronto time)

    Record date            December 10, 2012 (Perth time)

                           December 9, 2012 (Toronto time)

    Payment date           December 14, 2012 (Perth time)

                           December 14, 2012 (Toronto time)

This special distribution is not subject to any future changes.

As previously outlined, Chalice has received a draft Class Ruling from
the Australian Taxation Office (‘ATO’) indicating that the proposed
distribution will not be taxed as a dividend.  It is estimated that the
ATO will publish the Class Ruling on or around December 5, 2012.  The
Company will release full details of the Class Ruling shortly

For further information on the proposed equal capital return and
reduction, please refer to previous press releases on October 23, 2012
and November 28, 2012 as well as the 2012 AGM Notice of Meeting which
has been sent to all shareholders and was released to the ASX and SEDAR
in Canada on October 24, 2012.

Chief Financial Officer & Company Secretary

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,
except as required by law or regulation. 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; the ultimate outcome for shareholders of any Class Ruling
received from the Australian Tax Office (“ATO”) in relation to any
proposed capital return, 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.  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


SOURCE Chalice Gold Mines Limited

Source: PR Newswire