VANCOUVER, BC – October 21, 2010 – CHALICE DIAMOND CORP. (TSX-V: COD) (the “Company”) is pleased to announce that shareholders of the Company and the TSX Venture Exchange (the “Exchange”) have approved the consolidation of the Company’s shares on a 10:1 basis. The Company will begin trading on a consolidated basis on Friday, October 22, 2010.
At the Company’s Special Meeting held on October 18, 2010, shareholders approved a consolidation of its share capital on the basis of one (1) new common share for every existing ten (10) common shares (the “Consolidation”). Where the exchange resulted in a fractional share, the number of common shares will be rounded to the nearest whole common share. The Consolidation will enhance the marketability of the common share as an investment and facilitate additional financings to fund future operations. Shareholder and Exchange approval of the Consolidation has been received with the record date set as October 22, 2010. The Company now has a total of 10,989,152 common shares issued and outstanding.
After reviewing its Albert Lake, Lapp Lake and Josephine properties and its 50% interest in the Forge Lake and Otter Pond/Hawk Junction properties, the Board of Directors has determined not to continue with its option on these properties. The Board of Directors also announces the resignation of Peter Caldbick as a director of the Company.