Golden Chalice Resources Inc.
TSX VENTURE : GCR

Golden Chalice Resources Inc.

July 12, 2010 16:46 ET

Golden Chalice Resources: Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2010) - Golden Chalice Resources Inc. (TSX VENTURE:GCR) (the "Company") is pleased to announce that the new management team has conducted a financial review of the Company, commenced a property review, continues to build and add value to the Board of Directors and is developing its strategy to guide its 2010 exploration programs and budgeting.

FINANCIAL UPDATE:

The Company has sufficient funds for the remainder of the year but will require additional funding for any significant future exploration programs. A review of the Company's finances has led to a number of recommendations, some of which have already been implemented. Company overhead and operating expenditures have been drastically reduced and all work programs have been temporarily suspended pending a thorough property review by the new Board of Directors. "We will continue the process of reviewing expenditures to ensure the maximum amount of Company dollars are spent in the ground as exploration expenses," states Company CFO, Stephen Pearce.

PROJECT UPDATE:

The project review, scheduled for the beginning of August in Timmins, Ontario, will include the new Board of Directors and management team, project geologists, previous consulting geologists to the Company and several property vendors. Based on this review, the Company will develop specific plans for each project which will be announced shortly thereafter.

The Company has filed its National Instrument 43-101 technical report for the Langmuir W4 Nickel Deposit and shareholders are invited to visit sedar.com for a copy of this report. A technical report on the Company's Radio Hill project is expected to be filed on Sedar within the next week and the Company will announce its filing and summary at that time.

A preliminary review by the new management has identified certain priority project areas:

Langmuir W4 Nickel Deposit: The Langmuir nickel project, located within the boundaries of the City of Timmins, Ontario, is a high grade nickel deposit amenable to open pit mining methods. The deposit contains an indicated resource 677,000 tons grading 1% (14,813,000 pounds of nickel) and inferred resource of 171,000 tons grading 0.89% (3,360,000 pounds of nickel), see May 19, 2010 news release. According to the SRK Consulting report, the next step to advance the project is to commission environmental, metallurgical, and scoping studies as well as conduct infill drilling on sections of the deposit in the inferred category. It is recommended that deep drilling beneath and downdip of the deposit will be handled as a different campaign in order to expedite the initial scoping study.

Radio Hill Iron-Ore Project: The recent 43-101 Technical Report of the Radio Hill Iron-Ore Project conducted by MICON International Ltd. contained a number of exploration recommendations for the Company. A $3.5 million exploration program has been outlined by MICON to advance the project and provide the data necessary to commission a NI 43-101 Resource Estimate. Numerous historical resources estimates have been conducted on the project ranging 90.2 million tons of iron-ore grading 27.3% (limited to a 680 foot elevation cut-off) to 427.6 million tons grading 27.3% (no known elevation cut-off). An estimated 140 drill holes have been put into the Radio Hill Iron formation.

Other Projects slated for Review: Nevada UKE/Aphro Gold Project, Brinklow Gold, Bathurst Portage and Taylor Projects, Timmins West and Abitibi East.

CORPORATE UPDATE:

Dr. Trygve Hoy, P.Eng. has been added to the Board of Directors and he will play an instrumental role in the evaluation of the Company's projects. The new management team has commenced a review of the Company's website and expects this to be completed by the end of July. Following the project review, the Company will provide further updates to shareholders of its priorities and recommendations for each project. The Company's focus will continue to be on both base and precious metal exploration in areas with existing infrastructure in jurisdictions favourable to mining practices.

ABOUT GOLDEN CHALICE

On May 19, 2010, the Company announced it had completed a NI 43-101 resource estimate for its flagship Langmuir Nickel Project where 2007 drilling intersected 72 meters of 1.14% nickel. The Langmuir Project is easily accessible by road and is near existing mining infrastructure in the Timmins camp, host to numerous world-class gold and base metal deposits. The Company owns 100% of the property which covers more than 30 km of favorable stratigraphy with potential for hosting Kambalda-style deposits.

This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the corporation's control which may cause actual results, performance or achievements of the corporation to be materially different from the results, performance or expectation implied by these forward looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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