questions??, page-2

From what I've observed so far the Eritrean government is nothing like the Congo. In Eritrea the government offers and pays full value for their equity stake, in Congo they just steal it. It is a command economy however and nothing happens without direct government approval. It seems that mineral development is a priority as directed from the president, in such an environment we can hopefully expect little bureaucratic resistance and much assistance.

The fact that the government is taking 40% of the project (30% fully funded) is actually a big plus. It practically eliminates political risk, it reduces Chalices requirement to raise all the capital for start up. It should also reduce any risk premium associated with debt financing. For a company trying to get its first mine off the ground these things are very helpful.

The recent announcements just through seem to validate the level of support Chalice are receiving.