Ann: Quarterly Activities Report and Cashflow, page-2

Chalice resets for potentially transformational drilling programmes after identifying outstanding new gold targets in Victoria and Quebec

Highlights

<> Pyramid Hill Gold Project – Bendigo Region, Victoria
• Seven high-priority targets identified by peak gold-in-soil geochemical anomalies and gravity features.
• Maiden 8,500m Aircore/Reverse Circulation drilling programme set to commence in early November.
• Drilling commencing on granted Exploration Licences 20-50km north-west of >22Moz Bendigo Goldfield.
• New multi-purpose AC/RC rig to be mobilised to give operational flexibility.
• Chalice now a well-established and active explorer in the region, with ~3,080km2 of Exploration
Licences.

<> East Cadillac Project – Quebec, Canada
• Several new, extensive and coherent gold-in-soil anomalies defined in new geochemistry results.
• ~3.4km x 1.3km Legrand anomaly: similar geochem and structural signature to >16Moz Canadian
Malartic gold mine, ~70km to the west
• ~2.3km x 0.5km 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 upcoming winter drill season.
• Key western project area consolidated following acquisition of remaining 30% interest from Monarques Gold Corporation (TSX-V: MQR), giving Chalice 100% ownership (including the two new anomalies).

——> Corporate
• Strong cash balance of ~A$34.1 million at Quarter-end plus liquid investments and receivables of ~A$5.1 million (equivalent to total current assets of ~A$39.2 million or ~A14.7c 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 A4c per share (~A$10.7 million) was announced, to be voted on by shareholders at the upcoming Annual General Meeting.


Mit question:
all the promising explorator areas are rated virtually zero. How long will these super areas be ignored and zeroed out?