Mr. Alex Dorsch reports

NEW PHASE OF EXPLORATION UNDERWAY AT EAST CADILLAC GOLD PROJECT IN QUEBEC

Chalice Gold Mines Ltd. has commenced the next phase of field activity at its East Cadillac gold project in Quebec.

This field program, which will take place from July, 2018, to September, 2018, aims to:

• Field assess newly recognized targets identified from a regional structural geology/geophysical interpretation over the expanded project area;
• Further investigate the recent gold discoveries at North Contact and Lac Rapides;
• Define drill-ready targets for the next drilling program in the late fourth quarter of 2018.

The program builds on previous work to date on the project, which included:

• Completing a National Instrument 43-101 and Joint Ore Reserves Committee 2012 compliant mineral resource estimate for Nordeau West (from historical drilling), outlining an indicated mineral resource of 225,000 tonnes at 4.17 grams per tonne gold (Au) for 30,200 ounces Au and an inferred mineral resource of approximately 1.11 million tonnes at 4.09 g/t Au for 146,300 oz Au;
• MMI soil, rock chip and bark sampling, and aeromagnetic and LiDAR geophysical surveys across the western part of the project (prior to Forsan and Denain-Pershing earn-in joint ventures);
• Detailed 200 m line-spaced 3-D Orevision induced polarization geophysical surveys along the western 16 kilometres of Larder Lake Cadillac fault zone;
• Approximate 28,700-metre diamond drilling program aimed at testing regional reconnaissance targets and testing downplunge extensions of known mineralization at Nordeau West and Simon West prospects;
• Extended known mineralization at Simon West to approximately 3.5 km of strike length, open to the west;
• Two new significant wide zones of mineralization, open along strike and down dip, intersected at North Contact and Lac Rapides prospects.

Chalice chief executive Alex Dorsch said: "Every phase of fieldwork is providing more evidence of the exploration potential at East Cadillac, given our proximity to several globally significant gold mines, we consider that potential to be very high.

"We have already established downplunge extensions at Nordeau West and Simon West, and the presence of wide zones of gold mineralization at North Contact and Lac Rapides. We believe there is significant upside on our district-scale land package within the five focus areas of the current program."

Planned field activities

Since the last summer field season, the landholding at the project has increased by approximately 50 per cent and hence a large portion of work is planned on newly optioned/acquired claims to undertake first pass geochemical sampling and define new targets. This will complement additional work around areas of newly identified gold mineralization discovered in early 2018.

The planned field program will focus on five main areas:

• Area 1: The area north of the LLCFZ including the Forsan deposit in the central-north and the McDonough gold showing in the northwest (acquired/optioned in 2017);
• Area 2: The eastern extension of the LLCFZ into the newly optioned Denain-Pershing claims;
• Area 3: South of the Nordeau West and Simon West deposits in the vicinity of the newly discovered mineralization spatially associated with felsic porphyry dikes;
• Area 4: East of Lac Saucisse in the central-south part of the property;
• Area 5: North and west of Simon West to follow up on gold intersections from recent drilling and a new target identified from recent structural studies.

North of the LLCFZ, infill MMI soil sampling to 200-metre-by-200-metre spacing will further refine surface geochemical targets along strike of the McDonough gold showing in the west and the Forsan deposit in the east. Airborne magnetic and very low frequency-electromagnetic geophysics coverage will be extended north to cover this portion of the property as well as two isolated blocks of ground on the western end of the LLCFZ. With this increased data coverage in the north Chalice will be vectoring into the highest potential targets along LLCFZ parallel structures within this largely mafic volcanic package.

From the Lac Rapides target east to the shores of Lac Matchi-Manitou, Chalice will extend coverage of 200 m by 200 m MMI geochemical sampling to test for extensions to high-priority gold and pathfinder anomalies. Ground 3-D-IP coverage will be extended along the LLCFZ east to the shore of Lac Matchi-Manitou. The area east of Lac Rapides has not been subject to modern exploration techniques and given the new gold discovery at Lac Rapides, the area has high potential for additional gold discoveries.

Chalice will undertake 200 m by 200 m infill MMI soil sampling over a previously identified gold and pathfinder anomaly located East of Lac Saucisse, where a recent interpretation of the airborne magnetics has outlined potential for buried felsic intrusions in the same general area of pegmatite outcrops. Felsic intrusions are important hosts to gold mineralization elsewhere in the Abitibi subprovince, and the identification of potential buried felsic/porphyry intrusions enhances the exploration potential of this area.

A team of Chalice geologists will be mapping and prospecting any new bedrock outcrop discovered during the course of the aforementioned work in these main follow-up areas, including the newly optioned Denain-Pershing claims.

Structural interpretation

Chalice recently completed a detailed structural interpretation of the expanded ECG project using a combination of aeromagnetic interpretation of detailed (50 m and 70 m) flight line surveys and fact geology. Key areas for follow-up field investigation are outlined in this news release.

• Stepover regions where the LLCFZ propagates along areas of strong rheological contrast;
• First- and second-order flexures along the major faults including the LLCFZ;
• Areas of enhanced competency contrast along major lithological contacts (in example, greywacke/BIF/volcanics/felsic intrusion contacts);
• Potential felsic bodies (porphyry) intruded along major structural corridors.

Chalice plans to undertake follow-up field checking, mapping (if outcrop present) and soil sampling this field season over these exciting targets outlined from the detailed structural investigation.

Program timing and budget

The program has a combined budget of $1.9-million and will continue through the third quarter of 2018 with final results expected in late Q3 2018. Drill-ready targets are anticipated to be finalized by the middle of Q4 2018.

About the East Cadillac gold project, Quebec, Canada

The East Cadillac gold project covers an area of 245 square kilometres and is located approximately 35 km east of the more-than-20-million-ounce Val d'Or gold camp in Quebec, Canada. With landholdings encompassing a strike length of 27 km of the Larder Lake-Cadillac fault, the most prolifically endowed gold trend in the southern Abitibi, the project is situated amongst some of the region's most significant mines, and surrounds the historical Chimo gold mine, owned by Cartier Resources. The project is a consolidation of several earn-in option agreements (Chalice earning 70 per cent to 100 per cent) and Chalice's 100-per-cent-owned claims.

Competent persons and qualifying persons statement

The information in this news release that relates to exploration results in relation to the company's projects is based on information compiled by Dr. Kevin Frost, BSc (honours), PhD, who is a member of the Australian Institute of Geoscientists. Dr. Frost is a full-time employee of the company and has sufficient experience in the field of activity being reported to qualify as a competent person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and is a qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. The qualified person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release. Dr. Frost consents to the release of information in the form and context in which it appears here.

We seek Safe Harbor.