Chalice Mining Advances Gonneville Palladium-Nickel-Copper Project Toward 2028 Final Investment Decision

Gonneville: A Globally Significant Critical Minerals Asset

Chalice Mining’s Gonneville project represents a major development opportunity within Western Australia’s premier mining jurisdiction. Discovered as a greenfield site in 2020, the company has since delineated the resource and reserve base. According to the latest update, Gonneville holds the largest and lowest-cost undeveloped palladium-nickel-copper reserve in the western world, underscoring the deposit’s scale and attractive economic profile expected to deliver strong returns over its operational lifespan.

Situated in Western Australia, a top-tier mining jurisdiction with robust infrastructure, regulatory frameworks, and mining expertise, the project benefits from significant development advantages. Palladium, nickel, and copper are critical minerals increasingly vital for battery technologies, renewable energy, and industrial manufacturing. The combination of strong commodity demand, project-scale economics, and jurisdictional quality positions Gonneville as a strategically important asset in the global critical minerals supply chain diversification.

Feasibility Study and Concurrent Advancement of Permitting and Financing

Chalice Mining is advancing multiple workstreams concurrently to meet the targeted 2028 FID. The ongoing feasibility study provides a comprehensive technical and economic assessment of the mining operation. Simultaneously, the company is progressing regulatory approvals, negotiating offtake agreements with potential customers, and engaging in project financing discussions with financial institutions. This integrated approach aims to shorten development timelines and mitigate execution risks by addressing key requirements early.

By advancing feasibility, approvals, offtake, and financing in parallel, Chalice aligns with industry best practices for large-scale critical minerals projects. This strategy enhances the likelihood of securing all necessary approvals, commercial agreements, and financial commitments by H1 2028, maximizing efficiency and creating a clear path to development.

Reserves and Mineral Resources Supporting Production Targets

The company’s update references ore reserves from the "Gonneville Palladium-Nickel-Copper Project PFS" announcement dated 8 December 2025. Production targets are primarily based on Measured (1%) and Indicated (93%) Mineral Resources, with a minor portion (6%) from Inferred Resources. Chalice cautions that Inferred Resources carry a low geological confidence level, and there is no certainty that further exploration will convert these into Measured or Indicated categories or that production targets tied to Inferred Resources will be achieved.

Resource estimation has evolved through additional drilling and metallurgical testing. A 23 April 2024 announcement titled "Gonneville Resource Remodelled to Support Selective Mining" detailed resource modelling refinements for mining selectivity. Subsequent updates on 17 February 2025 and 6 May 2025 reported metallurgical and process flowsheet improvements influencing current estimates. The company confirms no material changes or new information affecting original reserve and resource assumptions.

Rapid Payback and Long Mine Life Economics

Chalice characterizes Gonneville as offering rapid capital payback alongside significant upside potential. The project is planned as an open-pit mine with an anticipated 23-year life, delivering a long-term cash flow stream expected to generate exceptional shareholder returns. Rapid payback reduces exposure to commodity price volatility and accelerates cash generation, a critical advantage in today’s investment environment.

The project's economics benefit from its status as the lowest-cost undeveloped palladium-nickel-copper reserve in the western world. This cost advantage enhances resilience against commodity price downturns and increases appeal to offtake partners and financiers. The 23-year mine life supports sustained production, long-term employment, regional economic benefits, and ongoing investor returns.

Exploration Upside: Copper-Gold Targets Across Australian Jurisdictions

Beyond Gonneville, Chalice has identified eight new copper-gold exploration targets scheduled for drilling in Q3 2026 across Western Australia, South Australia, and the Northern Territory. Drilling is underway on a significant anomaly featuring over 2.5 kilometres of copper-in-soil anomalism and rock chip assays exceeding 15% total rare earth oxides (TREO), indicating potential resource extensions.

This multi-jurisdictional exploration strategy reflects a disciplined approach to expanding the critical minerals portfolio. Strong geochemical signals, including extensive copper anomalies and elevated rare earth elements, support further drilling. Positive results could add resources beyond Gonneville, enhancing growth prospects. The Q3 2026 drilling aligns with Gonneville’s development timeline, balancing capital allocation between project advancement and exploration.

Strong Financial Position to Fund Development Through FID

Chalice Mining holds approximately A$63 million in cash and listed investments as of the announcement date, sufficient to fund operations through the targeted FID in H1 2028. This robust financial position reflects disciplined capital management and provides a clear runway without immediate need for equity or debt raises, allowing focused project development without financing pressure.

The company notes availability of significant government critical minerals funding programs and the scarcity of western development projects globally, which may provide additional funding opportunities. Various governments and development finance institutions support critical minerals projects in allied jurisdictions, recognizing their strategic importance. Chalice is well-positioned to access such support to complement its internal funding and strengthen the financial case for development.

Critical Minerals Sector Growth and Western Australia’s Development Edge

The Gonneville project benefits from strong global demand drivers in the critical minerals sector. Palladium is essential for autocatalysts and hydrogen fuel cells; nickel is critical for batteries in electric vehicles and energy storage; copper is fundamental to electrical infrastructure and renewable energy systems. Demand for these metals is expected to grow substantially as the world transitions to clean energy and electrified transport, positioning Gonneville to capitalize on these trends.

Western Australia’s status as a premier mining jurisdiction offers Chalice key advantages, including world-class infrastructure, a skilled workforce, established supply chains, and mature regulatory frameworks. These factors reduce execution risks and operating costs compared to less-developed regions. The company’s emphasis on developing within a top mining jurisdiction highlights the importance of jurisdiction quality on project economics, timelines, and stakeholder relations.

Technical Progress and Metallurgical Breakthroughs Since Discovery

Since the 2020 discovery, Chalice Mining has made substantial technical progress optimizing Gonneville ore processing. A "major metallurgical breakthrough" was announced on 17 February 2025, followed by further process flowsheet enhancements on 6 May 2025. These advancements improve metal recovery, reduce processing costs, and simplify operations, positively impacting project economics and reducing technical risk in the feasibility study.

The company’s development has progressed through exploration, resource definition, reserve estimation, and metallurgical testing. Previous announcements include identification of "new wide high-grade zones" (31 July 2023), extension of "high-grade copper-PGE zones" (30 November 2023), and discovery of an "exceptional copper-rare earth target" at the Deep Blue prospect (4 June 2026). This technical evolution demonstrates Chalice’s capability to advance complex mineral systems toward development.

Forward-Looking Statements and Resource Confidence Risks

Chalice Mining’s update contains forward-looking statements identified by terms such as 'may', 'could', 'believes', 'estimates', 'targets', 'expects', or 'intends', which involve risks and uncertainties. These statements are based on current assessments and assumptions deemed reasonable as of the announcement date but are not guarantees of future performance. Investors are cautioned against undue reliance, and the company does not intend to update these statements except as required by law or ASX rules.

Production targets rely mainly on Measured and Indicated Mineral Resources, with a small portion from Inferred Resources, which carry low geological confidence. There is no assurance further exploration will upgrade these resources or that production targets linked to Inferred Resources will be realized. Additionally, some information is derived from third-party sources not independently verified, and no warranty is made regarding its accuracy or completeness. These standard industry disclosures emphasize the importance of investor due diligence.

Upcoming Milestones and Investor Focus Areas

Chalice Mining’s development roadmap centers on achieving the 2028 FID for Gonneville. Key upcoming milestones include completion of the feasibility study, securing major regulatory approvals, finalizing offtake agreements, and arranging project financing. These milestones are critical gateways before FID and will be closely monitored by investors for indications of progress or challenges.

The Q3 2026 drilling campaign targeting eight new copper-gold exploration prospects is another important event. Positive results could enhance exploration upside and portfolio optionality beyond Gonneville. The company’s A$63 million cash position supports operations through FID, making capital management and potential government funding access important investor considerations. Future announcements are expected to focus on feasibility progress, permitting achievements, and exploration outcomes from the 2026 drilling program.