Chalice Mining Allocates Over 7.7 Million Performance Rights and Options to Employees and Executives

Chalice Mining’s Annual Employee Incentive Program and Remuneration Approach

Chalice Mining Limited has announced its annual employee incentive distribution, granting a total of 7,784,081 performance rights and options to its workforce. Specifically, 3,206,852 performance rights and 4,577,229 options were issued to key management and employees under the Employee Securities Incentive Plan. This recurring issuance reflects the company’s strategic focus on equity-based remuneration over cash compensation, aiming to align employee interests with shareholder value creation through ownership stakes.

Equity incentives are a central component of Chalice Mining’s strategy to retain key talent. The company emphasized that this approach is consistent with previous years, demonstrating a sustained commitment to equity-linked remuneration. The Employee Securities Incentive Plan provides a structured framework for issuing these securities, which are subject to Board-established performance and vesting criteria. This governance ensures performance-based rewards while maintaining disciplined oversight of incentive outcomes.

Details of Options Issued to Chalice Mining Employees

The options granted by Chalice Mining feature specific terms designed to promote long-term company performance alignment. Each option has an exercise price of $1.78, defining the price at which holders may convert options into ordinary shares. The vesting date is set for 21 July 2028, requiring employees to wait approximately two years from the announcement date before exercising their options. The expiry date is 23 July 2029, allowing a twelve-month period post-vesting for option holders to exercise or let their options lapse.

This three-year timeline from issuance to expiry establishes a robust performance incentive. The relatively low exercise price compared to typical share valuations indicates the company’s intention to provide meaningful economic incentives. The two-year vesting period encourages employee retention, while the one-year exercise window offers flexibility for option holders to optimise their conversion timing based on market conditions and personal circumstances.

CEO Alex Dorsch’s Awards Pending Shareholder Approval

Managing Director and CEO Alex Dorsch has been allocated 523,417 performance rights and 703,300 options under the Employee Securities Incentive Plan. However, these allocations are conditional upon shareholder approval, which will be sought at the 2026 Annual General Meeting. This requirement aligns with corporate governance standards for senior executive remuneration, particularly for securities issued to directors and top management. Until shareholder ratification, these securities will not take effect.

Seeking shareholder approval underscores Chalice Mining’s commitment to transparency and accountability in executive compensation. Investors will have the opportunity to evaluate and vote on the CEO’s remuneration package at the upcoming AGM, reinforcing shareholder influence over senior management incentives. This approval process is anticipated to occur in the months leading up to the 2026 Annual General Meeting.

Performance and Vesting Conditions to Be Detailed in 2026 Annual Report

The company confirmed that specific performance and vesting conditions attached to the issued performance rights and options will be disclosed in the 2026 Annual Report, due in September. Detailed performance criteria were not included in the current announcement. Investors and employees will need to consult the annual report to understand the exact metrics and milestones triggering vesting. Typical conditions may include revenue growth, operational targets, safety standards, or shareholder returns, though Chalice Mining has not specified which will apply.

Deferring detailed disclosure until the annual report is standard practice among ASX-listed companies, allowing comprehensive documentation of performance frameworks. The September timeline provides investors with a clear date for accessing full details. The vesting conditions will determine whether employees achieve full, partial, or no vesting based on company and individual performance, promoting a results-driven incentive structure aligned with shareholder interests.

Chalice Mining’s Operations and Regional Presence

Chalice Mining Limited is an exploration and development company headquartered in West Perth, Western Australia. Its primary operational focus is within Western Australia, leveraging the region’s rich mineral resources and established mining infrastructure. As an ASX-listed company under ticker CHN, Chalice Mining operates within Australia’s regulatory framework, with its registered office located at Level 3, 46 Colin Street, West Perth. This location serves as the central hub for corporate communications and investor relations.

Operating in Western Australia positions Chalice Mining within a premier mining jurisdiction, offering access to robust supply chains, skilled workforce, and regulatory support for resource development. The company’s equity-based remuneration and formal employee incentive plans reflect a mature, professionally managed corporate structure. Compliance with ASX Listing Rules and Australian securities regulations governs its operations as a publicly listed entity.

Governance and Disclosure Protocols for Unquoted Securities

Chalice Mining will issue a separate "Notification Regarding Unquoted Securities" to the ASX following this announcement, providing further details on the performance rights and options granted. This supplementary disclosure complies with ASX requirements for unquoted securities, which, while not traded on the exchange, remain valuable compensation instruments. The company’s commitment to this additional notification demonstrates adherence to regulatory transparency and governance standards.

This two-step disclosure process—initial company update followed by detailed technical notification—ensures investors receive both accessible context and comprehensive information. ASX regulations mandate timely disclosure of material information affecting security holders, and Chalice Mining’s approach aligns with best practice governance. The Disclosure Committee has authorised this announcement, confirming internal governance procedures have been observed.

Employee Securities Incentive Plan as a Retention and Alignment Mechanism

The Employee Securities Incentive Plan formalizes Chalice Mining’s distribution of equity-based remuneration across its workforce. This plan ensures consistency, transparency, and governance over incentive issuance, clarifying terms and conditions for all eligible employees. Incorporating both performance rights and options, the plan offers flexible incentive structures tailored to various employee roles and levels.

The plan’s recurring annual issuance underscores Chalice Mining’s view of equity incentives as a core long-term compensation strategy rather than a one-off measure. This consistency supports employee expectations and demonstrates the company’s commitment to meaningful remuneration beyond base salaries. Performance conditions embedded in the plan ensure incentives are earned through measurable contributions, aligning employee motivation with shareholder value creation through performance-driven rewards.

Upcoming Disclosure Milestones for Investors

Shareholder approval for CEO Alex Dorsch’s performance rights and options allocation will be sought at the 2026 Annual General Meeting, marking a key milestone for investors monitoring executive remuneration. Although the exact AGM date was not disclosed, this vote offers shareholders a formal opportunity to influence senior management incentives. Prior to the AGM, Chalice Mining will release the "Notification Regarding Unquoted Securities" to the ASX, providing detailed information on all issued securities.

The 2026 Annual Report, scheduled for September release, will include comprehensive disclosure of the performance and vesting conditions tied to these securities. This timeline offers investors a clear schedule for accessing detailed incentive program information. Between this announcement and the AGM, investors can expect progressively detailed disclosures, supporting informed evaluation of Chalice Mining’s remuneration policies and governance practices.