Last updated on April 17, 2014 at 21:23 EDT

$25 million capital return completed

December 14, 2012

Symbol:  ASX: CHN TSX: CXN
Shares outstanding:    250 million
Fully diluted: 255 million

PERTH, Western Australia, Dec. 14, 2012 /CNW/ – Chalice Gold Mines Limited (ASX: CHN/TSX: CXN) is pleased to advise that it has today despatched the payment of its
capital return by cheque to shareholders, amounting to 10 cents per
share and totalling $25 million. The payment has been made to
shareholders registered at the close of business on December 10, 2012
(December 9, 2012 for TSX shareholders) (‘the Record Date”).

Shareholders are also advised that, as outlined in the 2012 AGM Notice
of Meeting, the Company now has 4.6 million unlisted share options with
varying exercise prices and 200,000 performance rights on issue. As
approved by shareholders and in accordance with ASX Listing Rules, the
exercise price for each option has been reduced by 10 cents. In
relation to the performance rights, the number of performance rights
will be adjusted to take into account the effect of the capital return
on the basis outlined in the 2012 AGM Notice of Meeting.

Following payment of the capital return, Chalice has approximately $54
million cash on hand and no debt, which will enable the Company to
acquire a sizeable resource asset and continue to explore at the 60 per
cent owned Mogoraib North Project in Eritrea.

At Mogoraib North, exploration will focus on targeting high grade zones
within the T209 Volcanogenic Hosted Massive Sulphide zone, which has
identified massive and semi massive sulphides over a minimum 5km’s of

Planned surface and down-hole electromagnetic surveys will be undertaken
over the next two months prior to the commencement of drilling at the
project in early 2013.

Executive Chairman

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; 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