An anonymous director reports

CHALICE SEPTEMBER 2018 QUARTERLY ACTIVITY & CASH FLOW REPORTS

Chalice Gold Mines Ltd. has provided its quarterly activity and cash flow reports for the quarter ended Sept. 30, 2018. The full text of these reports are available at the company's website and under the company's profile on SEDAR.

Quarterly highlights

Pyramid Hill gold project -- Bendigo region, Victoria:

• Seven high-priority targets identified by peak gold-in-soil geochemical anomalies and gravity features;
• Maiden 8,500-metre air-core/reverse circulation drilling program set to commence in early November; drilling commencing on granted exploration licences 20 to 50 kilometres northwest of over-22-million-ounce Bendigo goldfield;
• New multipurpose air-core/reverse circulation rig to be mobilized to give operational flexibility;
• Chalice now a well-established and active explorer in the region with approximately 3,080 square kilometres of exploration licences.

East Cadillac project -- Quebec, Canada:

• Several new, extensive and coherent gold-in-soil anomalies defined in new geochemistry results;
• Approximately 3.4-kilometre-by-1.3-kilometre Legrand anomaly -- similar geochemical and structural signature to over-16-million-ounce Canadian Malartic gold mine, approximately 70 kilometres to the west;
• Approximately 2.3-kilometre-by-0.5-kilometre Anderson anomaly -- on a regional structure that hosts several large gold deposits;
• These untested targets to be drilled in early 2019 as part of the coming winter drill season;
• Key western project area consolidated following acquisition of remaining 30-per-cent interest from Monarques Gold Corp., giving Chalice 100-per-cent ownership (including the two new anomalies).

Corporate:

• Strong cash balance of approximately $34.1-million (Australian) at quarter-end plus liquid investments and receivables of approximately $5.1-million (Australian) (equivalent to total current assets of approximately $39.2-million (Australian), or approximately 14.7 Australian cents per share);
• Chalice refined its growth strategy to focus principally on high-impact gold exploration opportunities;
• As such, a proposed capital reduction and return of up to four Australian cents per share (approximately $10.7-million (Australian)) was announced, to be voted on by shareholders at the coming annual general meeting.

The information in this report that refers to the Pyramid Hill gold project is extracted from the announcements dated July 17, 2018, and Sept. 27, 2018.

The information in this report that refers to the East Cadillac gold project is extracted from the announcement dated Oct. 25, 2018.

We seek Safe Harbor.