Bullion plans new year Chalice IPO

Bullion Minerals Ltd has revealed plans to spin off several gold exploration assets in an IPO of its newly registered subsidiary Chalice Gold Mines Ltd.

The float is planned for early next year with Bullion retaining a significant equity stake in Chalice which would then be distributed directly to Bullion shareholders later in the year.

Below is an extract of relevant material from the managing director's address to the AGM today:

Recently, we incorporated Chalice Gold Mines Limited (Chalice Gold Mines) as a
specialist gold exploration company.

[Image showing bullet points on Chalice Gold Mines Ltd]

(1) Trident resource published by Avoca Resources Ltd on 2 August 2005.
(2) Chalice 163,000 oz gold resources was calculated by Resolute Mining Ltd, as published in Resolute
Mining Ltds 2002 Annual Report.
(3) Indee resource of 529,000 oz published by Range River Gold Ltd on 4 March 2005. Wingina Well
resource of 203,300 oz published by De Grey Mining Ltd on 29 October 2004.

2

We intend, subject to market conditions remaining favorable, to undertake an IPO of
Chalice Gold Mines early next year, raising new capital to fund an aggressive drill
program, focusing in particular on our drill ready targets at Higginsville, Chalice and
Yandeearra.

The first year should deliver a steady news flow as we test the prime targets at Higginsville.

We plan for Bullion to retain a significant equity interest in Chalice Gold Mines, with the
intention to distribute that interest directly to Bullion shareholders later in the year.

So thats our goal for the gold business. Getting active in some of the hottest ground in
Australia at present, with a direct return to shareholders. We have done the preparatory
work over the past 2 months and are set to kick off when markets return in the New Year.