Chalice Mining (CHN) Diggers and Dealers Conference summary

Project Overview and Development

• Flagship palladium-nickel-copper project in Western Australia with 17 million ounces of PGEs, 960,000 tons of nickel, 540,000 tons of copper, and 96,000 tons of cobalt in a single open pit, positioned as a long-life, low-cost asset.

• AUD 225 million invested since 2020 discovery, including resource drilling, land acquisition, and infrastructure planning.

• Project scaled down and flowsheet simplified to adapt to lower commodity prices, with a strong balance sheet of AUD 78 million in cash and investments.

• Major and Strategic Project Status granted by state and federal government, with environmental submissions targeted for mid CY26 and FID in late 2027.

• PFS to be finalized in Q4 2024 or Q4 CY25, with off-take and full-form approvals planned for 2025-2026 and first production expected in 2029-2030.

Market Conditions and Investment Case

• Palladium market is tightening due to supply cuts and underinvestment, with over 85% of global supply from Russia and South Africa, making the project a strategic Western supply option.

• Demand remains robust, driven by hybrid vehicles and stricter emissions standards, with policy shifts and slowing BEV uptake expected to support price recovery.

• Recycling and primary supply have both declined, with analysts consistently overestimating growth.

• Asset offers significant leverage to commodity price movements, trading at 2.5-5x spot price changes, with minimal new supply expected globally.

• Share price doubled in three months, largely due to rising palladium prices and new institutional investors.

Technical and Operational Advancements

• Metallurgical breakthrough achieved, enabling saleable nickel concentrate via flotation and simplified process flowsheet, removing need for hydrometallurgical circuit.

• Project capital hurdle reduced to under AUD 1 billion, with staged development and lower entry costs.

• High-grade mineralization accessible from surface, with minimal pre-strip and infrastructure requirements.

• Byproduct credits from copper, magnetite iron ore, and potential iron byproduct expected to further reduce costs.

• Over 1,200 drill holes totaling ~320,000m completed since March 2020, with recoveries proven across grade spectrum and foundational PFS milestone expected.