Chalice Gold Mines Limited - June 2016 Quarterly Report and Cashflows

Symbol:                    ASX: CHNTSX:  CXN

Shares outstanding:              281 million

Fully diluted:                            290 million

PERTH, Western Australia, July 27, 2016 /CNW/ - Chalice Gold Mines Limited (ASX: CHN, TSX: CXN) ("Chalice" or the "Company") advises that advises that its Activity and Cash Flow Reports for the quarter ended June 30, 2016 have been issued today.  The full texts of these reports are available at the Company's website www.chalicegold.com and under the Company's profile at www.sedar.com.

Quarterly Highlights:

Forward Looking Statements

• Sale of the Cameron Gold Project in Canada to TSX-V listed First Mining Finance Corp for 32.26M shares in First Mining, unlocking significant value for the Company.
• Chalice's investment in First Mining had a market value of ~A$25M at June 30, 2016. Therefore, at financial year-end, Chalice had net cash and investments totalling ~A$63M (or 22c per share).
• At closing on July 26, 2016, the First Mining shares were worth ~A$35M, A$10M more than on June 30.
• Subsequent to Quarter-end, Chalice commenced a share buy-back for up to 28.3M shares within 12 months.
• Low-cost and potentially high-impact exploration initiative continues to ramp-up with drilling to commence as soon as possible at the Warrego North project in the Tennant Creek Mineral Field of the Northern Territory.
• Significant ground positions secured in two of the world's premier gold provinces with further applications and claims staked in the Yilgarn Craton of Western Australia and the Abitibi Terrane in Canada.
• Agreements executed for the sale of two non-core exploration projects, Ardeen and Gnaweeda.
• Chalice continues to target additional high-potential opportunities globally.
• Appointment of respected Australian mining executive Morgan Ball as a non-executive Director.

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 and Kesselrun Resources, 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.

SOURCE Chalice Gold Mines Limited

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