Chalice Gold Mines - Press Release

PERTH, Western Australia, Jan. 31, 2012 /CNW/ - Chalice Gold Mines ("the Company") ASX:CHN TSX:CHN advises that its Activity and Cash Flow Reports for the quarter ended December 31, 2012 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

- Chalice agrees to sell its remaining 60 percent interest in the Zara Gold Project (Eritrea, East Africa) for up to US$100M to China SFECO Group.

- Terms of the sale of a 30 percent interest to the Eritrean National Mining Corporation have been varied to align completion of the transaction to the SFECO sale transaction.

- Chalice to focus its exploration efforts at the Mogoraib North VMS project, 10km north of the Bisha Mine.

- 5,000m drill program to commence at Mogoraib North shortly to test multiple bedrock conductor targets.

- The Koka Mining Licence was granted.

- Further high-grade results were received from drilling at Koka South.



For further information:

For further information, please contact:
Tim Goyder, Executive Chairman
Dr Doug Jones, Managing Director
Chalice Gold Mines Limited
Telephone +61 9322 3960

For media inquiries, please contact:
Nicholas Read
Read Corporate
Telephone: +618 9388 1474