Chalice Gold Mines Limited - Corporate update

Symbol:                    ASX: CHNTSX:  CXN

Shares outstanding:              263 million

Fully diluted:                          272 million

PERTH, Western Australia, May 2, 2017 /CNW/ - Chalice Gold Mines Limited (ASX: CHN; TSX: CXN – "Chalice" or "the Company") advises that it has lodged a Form 605 "Notice of Ceasing to be a Substantial Holder" in Oklo Resources Limited (ASX: OKU) ("Oklo") following the sale of approximately 23.4 million shares in Oklo at a price of A$0.24 for proceeds of A$5.6 million. The sale has resulted in a profit of approximately A$0.8 million and it is expected that the Company will be able to utilize tax losses to offset any capital gain.

In addition, since March 31, 2017, Chalice has sold a further 2 million shares in TSX-V listed company First Mining Finance (TSX-V: FF) for proceeds of C$1.4 million. Since completing the sale of the Cameron Gold Project to First Mining Finance in 2016 for 32.3 million shares in First Mining, Chalice has now sold 25 million shares for proceeds of C$21.3 million.

Chalice continues to hold 7.3 million shares in First Mining Finance which have a current market value of A$4.4 million.

As a result of the abovementioned transactions Chalice will have cash at bank of approximately A$49 million.

Chalice continues to seek quality resource projects internationally through direct ownership. The Company is also concurrently advancing several exciting exploration projects which will include significant drilling programs at the East Cadillac Gold Project in the world class Abitibi Province in Quebec, Canada and the untouched potential of the Latitude Hill Nickel Project in the Musgrave Province of Western Australia.

TIM GOYDER
Managing Director

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, the results of business development activities which may result in a corporate transaction or investment, the actual number of shares and price which may be purchased pursuant to the share buy-back, the future share price performance of First Mining Finance Corp, 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, will, may would, 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 may 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 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; 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 statements.

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

SOURCE Chalice Gold Mines Limited

Tim Goyder, Managing Director, Chalice Gold Mines Limited, Telephone [phone]