Agreement to sell residual interest in the Gnaweeda Gold Project terminated

Symbol: ASX: CHN TSX:  CXN
Shares outstanding: 250 million
Fully diluted: 258 million

PERTH, Western Australia, Oct. 4, 2012 /CNW/ - Chalice Gold Mines Limited (ASX: CHN/TSX: CXN) advises that, further to the announcement dated 13 June 2012, Chalice has terminated the agreement to sell its remaining 13.5% interest in the Gnaweeda Gold Project to Archean Star Resources Inc because of non-performance by Archean Star.

Chalice will now revert to its 13.5% interest in the Project with all commensurate rights.

DOUG JONES
Managing Director

SOURCE Chalice Gold Mines Limited