Mr. P. Randy Reifel reports

CHESAPEAKE PROVIDES DEVELOPMENT PLAN FOR METATES UPDATED PRE-FEASIBILITY STUDY

Chesapeake Gold Corp. and M3 Engineering & Technology, together with several industry-leading international consultants, are currently working toward the completion of an updated prefeasibility study on the Metates gold-silver-zinc project located in Durango state, Mexico. The updated PFS will build on the results of the original PFS titled "Metates gold-silver project NI 43-101 technical report preliminary feasibility study," dated March 18, 2013.

The Metates project hosts one of the largest undeveloped gold, silver and zinc reserves in the world.

The updated PFS is based on a lower initial ore throughput rate of 30,000 tonnes per day (tpd) (phase 1) versus the 60,000-tonne-per-day rate defined in the 2013 PFS. The updated PFS will incorporate a staged expansion up to 90,000 tpd (phase 2) which will be financed primarily from internal cash flow. The company believes this scalable approach will provide the optimal combination of lower initial capital cost while maintaining key operating efficiencies. The phase 1 production will operate for the first four years of the mine life with phase 2 production starting in the fifth year. Active pit mining is planned for a total of 27 years followed by 10 years of processing the stockpiled low-grade ore. The mine schedule has been optimized to supply higher-grade ore during the first 10 years of operation which will generate attractive economic metrics and preserve the full benefit of mining the world-class reserves at Metates. The results of the updated PFS are currently expected to be released during first quarter 2015.

Chesapeake has also defined several scope changes that will be incorporated into the updated PFS. A multidisciplinary evaluation of several alternative processing plant sites has identified a new location closer to the Metates mine site which will require less infrastructure development as compared with the prior Ranchito site. Further advantages of this new site include closer proximity to a high-quality limestone resource, more favourable topography and lower civil work costs.

Metallurgical and geotechnical investigations completed this year have supported the dry stack disposal of combined autoclave neutralization waste and cyanide leach tailings. Compared with the traditional wet disposal impoundment in the 2013 PFS, the dry stack option will result in substantially lower water consumption, a reduced environmental footprint and allow for concurrent life-of-mine reclamation.

Over all, the positive testwork and scope changes should result in a significant reduction in the capital cost to place Metates into production. The initial capital cost for the phase 1 operation is anticipated to be in the range of $1.0-billion (U.S.) to $1.5-billion (U.S.). Chesapeake has also identified other potential areas for further outsourcing of capital that may be incorporated into the updated PFS. In comparison, the phase 1 initial capital cost of the 2013 PFS was estimated at $3.2-billion with a production rate of 60,000 tpd. On an annual basis, phase 1 metal production for the updated PFS is anticipated to average 140,000 ounces gold, 16 million ounces silver, and 58 million pounds of zinc, with early production from phase 2 (years five through 10) anticipated to average 675,000 ounces gold, 14 million ounces silver and 150 million pounds of zinc.

Metates is unique among other large-scale development projects with world-class reserves of gold, silver and zinc located in a favourable mining jurisdiction. Metates also has the distinct advantage of being situated near excellent regional infrastructure, low-cost natural gas power and a skilled labour pool.

Chesapeake currently has $30-million in cash and marketable securities with no debt.

Gary Parkison, CPG, Chesapeake vice-president, development, and a qualified person as defined by NI 43-101, has reviewed the technical information presented in this release in regard to the Metates project.

We seek Safe Harbor.