SOURCE: Golden Chalice Resources Inc.

July 17, 2007 18:20 ET

Golden Chalice Resources Intersects Large Zinc Zone on the Abitibi East Property

VANCOUVER, BC--(Marketwire - July 17, 2007) - Golden Chalice Resources Inc. (TSX-V: GCR) (PINKSHEETS: GCRIF) is pleased to announce the discovery of a wide zinc mineralized zone in a geological setting similar to the world class Kidd Creek Deposit. The new zinc discovery occurs on the company's Abitibi East Property located approximately 65 km east of Xstrata's zinc processing metallurgical facility in Timmins, Ontario. The Abitibi East Property is also located about 70 km north-east of the Company's Langmuir Property where a new nickel discovery was first announced on May 16, 2007. Drilling continues on both properties. Laboratory results for the Langmuir Property drilling are expected to be received and announced later this week.

Drilling on the Abitibi East Property in 1998 by previous operators first identified geology favourable for hosting Volcanogenic Massive Sulphide (VMS) style zinc, lead, copper mineralization similar to the Kidd Creek Mine (117,547,000 tonnes @ 2.2% copper (Cu), 7.25% zinc (Zn), 0.28% lead (Pb) and 147.43 g/t silver (Ag)). The Kidd Creek deposit is associated with felsic lava domes and cryptodomes that occur proximal to synvolcanic fault zones. The Company's initial drilling in 2005 confirmed the VMS potential, intersecting 1.25% Zn, 0.13% Pb, and 0.04% Cu over 4.5 metres of core length. Systematic follow-up drilling during 2006 and 2007 across what is considered to be a 6 kilometre wide basin located the most favourable area for more detailed drilling to discover a VMS deposit.

To date, a consistent horizon of stringer and disseminated Zn, Cu and Pb mineralization with anomalous Ag has been identified spanning a strike length of approximately 2.0 kilometers. Geological, geochemical (MMI), and geophysical (VTEM and IP) information have been used to target and identify areas for testing mineralization at depth.

The new discovery was found with the first two holes drilled at depth on one of a number of targets. The results suggest that zinc mineralization is increasing in tenor to depth. The first hole was an extension of an earlier drilled hole, Hole GCAE-07-02. This hole, drilled at azimuth 195 degrees and dip -50 degrees, intersected 1.59% Zn, 0.41% Pb, and 0.02% Cu over 12.10 metres of core length from 391.5 to 403.6m. The second hole GCAE-07-16, was drilled on the same section with a collar 100 metres to the north behind hole GCAE-07-02 and with a dip of -70 degrees. This deeper hole intersected 2.00% Zn, 0.55% Pb, and 0.01% Cu over 10.0 metres of core length from 668 to 678 metres, within a longer intercept of 1.61% Zn, 0.38% Pb, and 0.02% Cu over 20.9 metres of core length from 668 to 688.9 metres. This larger and more mineralized zone is more than 300 metres down dip of the zone in hole GCAE-07-02.

In addition, the deeper hole not only intersected stringer and fracture filled zinc mineralization, but also what appears to be replacement style mineralization. This is the first hole where zinc rich bands appear to be replacing bedding. This style of mineralization may be an indicator of increased proximity to a massive sulphide zone.

Dr. George Hudak, an Associate Professor at the University of Wisconsin-Oshkosh and researcher on the relationships between volcanology, hydrothermal alteration and VMS deposits, has assisted Company geologists in the recognition of lithologies and alteration at the Abitibi East Property. Dr. Hudak is currently utilizing lithogeochemistry (rock chemistry) and petrographic studies (microscope analysis of rock) to help vector (target) in on felsic domes and potential synvolcanic fault zones which are often associated with VMS deposits.

The increase in size and strength of the zinc mineralized zone at depth combined with the recognition of debris flows with felsic lava fragments and sulphidic clasts, graphitic and cherty exhalites, moderate to strong silicification and sericitization, stringer Zn, Cu and Pb mineralization, and replacement style mineralization in the drilling to date, support the potential for a volcanogenic massive sulphide deposit on the Abitibi East Property.

A Summary of Volcanogenic Massive Sulphide Deposit Environments and how they relate to the Abitibi East exploration is available on Golden Chalice Resources' web site www.goldenchaliceresources.com.

Further drilling is planned to target the downdip and strike extent of this newly discovered mineralization. Peter Caldbick, P.Geo., is the qualified person for the purposes of National Instrument 43-101 and has read and approved this news release.

About Golden Chalice

Golden Chalice is well positioned to discover and capitalize on world class gold, silver, copper, nickel, zinc, platinum and palladium deposits. During the last couple of years the Company has strategically accumulated large land packages in existing mining or mineral districts such as the Abitibi in Ontario and the Bathurst Camp in New Brunswick. These properties have existing infrastructure and are often within road access to metallurgical facilities to process mined ores. Details relating to exploration activities on specific properties will be announced during the coming months as the work program is implemented.

GOLDEN CHALICE RESOURCES INC.
On behalf of the Board of Directors

Richard W. Hughes, Chairman

For Further Information Contact:

The Hughes Exploration Group
Phone: (604) 685-2222 or visit Golden Chalice's website:
www.goldenchaliceresources.com to see Smartstox interviews with Company
Chairman and President.

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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