June 16, 2011 adminsns

Chalice Diamond Increases Private Placement

VANCOUVER, BC – June 16, 2011 – Chalice Diamond Corp. (TSX-V:COD) (the “Company”) is pleased to announce that further to the Company’s news release dated May 4, 2011 the Company has increased its private placement from 3,500,000 non flow-through units (the “NFT units”) to 4,303,330 NFT units and from 2,500,000 flow-through units (the “FT units”) to 3,080,000 FT units for gross proceeds of $1,261,499.50.

Each NFT unit ($0.15 per unit) and each FT unit ($0.20 per unit) consisted of one common share and one-half of one non-transferable common share purchase warrant. Each full warrant entitles the holder to purchase one additional non flow-through common share of the company at an exercise price of $0.30 for two years from the date of issue of the warrant.

Finders’ fees will be paid on a portion of the funds raised. The private placement is subject to regulatory approval.

Proceeds from the flow-through portion of the placement will be applied to Chalice’s exploration expenditures on the Company’s Canadian properties and the proceeds from the non flow-through portion of the placement will be applied to general working capital.

For further information contact:

Rasool Mohammad, President & CEO
Phone: (604) 639-4533
Email: info@chalicediamond.com


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