Chalice restructures board and senior management team

Changes designed to streamline and reposition the company's board and management for the future

Symbol: ASX: CHN TSX: CXN
Shares outstanding: 287 million
Fully diluted: 294 million

PERTH, Western Australia, Oct. 14, 2014 /CNW/ - Chalice Gold Mines Ltd. (TSX:CXN; ASX:CHN) announced yesterday a number of changes to its board and senior management team to position it for its next phase of growth and development.

Bill Bent has stepped down as Managing Director, effective immediately, and will be succeeded as Managing Director and CEO by the Company's founder and current Executive Chairman, Tim Goyder.

The Board expressed its thanks to Mr Bent for his substantial contribution to Chalice over the past 18 months, during which he led the review of numerous acquisition opportunities and the acquisition of the Cameron Gold Camp and Rainy River gold projects in Ontario, Canada from Coventry Resources Inc.

As Managing Director, Mr Goyder will assume direct day-to-day responsibility for the Company's strategy and development moving forward, including the continued evaluation and development of the Cameron Project and its business development program. Mr Goyder will also assume responsibility for investor relations activities. The terms of Mr Goyder's employment agreement as Managing Director are attached as Annexure A. Mr Goyder has considerable experience in and is well known across the resource industry as an executive and investor, and has been a Director of Chalice since 2005. He is also a Director of Uranium Equities and Liontown Resources.

Mr Goyder will be replaced as Chairman by fellow Director Tony Kiernan. Mr Kiernan is a former practising lawyer and corporate advisor with extensive experience in the administration and operation of listed public companies. He is Chairman of BC Iron, Venturex Resources, the Fiona Wood Foundation and a Director of South Boulder Mines.

As part of the restructure, Dr Doug Jones will also step down from the Board as an Executive Director immediately following a lengthy and distinguished period of service in an executive capacity including as the former Managing Director.

The Board expressed its sincere appreciation to Dr Jones for his many years of dedicated service and for his substantial contribution, both corporately and technically, to the Company's development.

Following the changes, the Chalice Board now comprises Tony Kiernan (Chairman), Tim Goyder (Managing Director) and Stephen Quin (Non-Executive Director).

As a result of the changes, performance rights which were to be granted to both Mr Bent and Dr Jones, subject to shareholder approval at the Company's upcoming AGM (as outlined in the Company's 2014 Remuneration Report), will now not be put to shareholders.

The Company has also appointed highly experienced mining executive Gary Snow to the role of Chief Operating Officer who will oversee the evaluation and development of the Company's Projects. Mr Snow has 28-years' experience with a career spanning the global mining industry and joins Chalice from his most recent role as Executive General Manager, Exploration and New Business for Intrepid Mines. Prior to that, he was Early Stage Operations Manager, Australia and Asia and Global Exploration Manager for Iron Ore at BHP Billiton. He also previously held senior executive positions with Consolidated Minerals, RSG Global, Placer Dome and Delta Gold.

Richard Hacker remains as Chief Financial Officer.

Commenting on the changes, Mr Goyder said: "I'd like to express my sincerest thanks both to Bill and Doug for the substantial contribution they have made to the Company - in Bill's case as MD over the past 18 months and in Doug's over a significantly longer period of time.

"In no small part due to their efforts, Chalice is today in a fantastic position in the junior resource sector with over $44 million in cash at bank, a great gold asset in the Cameron Gold Camp in Canada and tremendous prospects to move forward and create substantial value for our shareholders.

"I would like to thank Tony for agreeing to take over the Chairmanship at this important time, and also to welcome Gary Snow to the Company in a senior executive role," Mr Goyder said. "I am confident that we have a tightly focused team in place with the right blend of skills and experience to take the Company forward and deliver value for shareholders."

(signed)
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 Ltd. (the Company) does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law or regulation. 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, statements with respect to the estimation of mineral reserves and mineral resources, the realisation of mineral reserve estimates, 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, 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 include, among others, risks related to actual results of exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry, 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.

Annexure A
Key Terms of Managing Director Executive Service Agreement

SOURCE Chalice Gold Mines Ltd.