Symbol: ASX: CHN TSX: CXN
Shares outstanding: 251 million
Fully diluted: 259 million

PERTH, Western Australia, Oct. 11, 2013 /CNW/ – Chalice Gold Mines Limited (TSX: CXN; ASX: CHN; “Chalice”) and Canadian gold developer Coventry Resources Inc. (ASX: CYY; TSX: CYY;
“Coventry”) advise that, in relation to the proposed merger by
Statutory Plan of Arrangement between the two companies announced on
September 30, 2013, the parties have agreed to extend the 14 day due
diligence period by a further 21 days.

The due diligence period will now end on or before November 2, 2013. A
revised indicative timetable to complete the merger will be detailed
upon executing an Arrangement Agreement.

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 Limited (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 whether the conditions to the completion of the merger
between Chalice and Coventry Resources will be met, 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, results of due
diligence activities in relation to the proposed merger between Chalice
and Coventry Resources; risks related to actual results of current
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.

None of the securities anticipated to be issued pursuant to the
Arrangement have been or will be registered under the United States
Securities Act of 1933, as amended (the “U.S. Securities Act”), or any
state securities laws, and any securities issued in the Arrangement are
anticipated to be issued in reliance upon available exemptions from
such registration requirements pursuant to Section 3(a)(10) of the U.S.
Securities Act and applicable exemptions under state securities laws.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities.

SOURCE Chalice Gold Mines Limited