Mr. Alan Pangbourne reports

CHESAPEAKE ANNOUNCES METALLURGICAL TESTWORK UPDATE

Chesapeake Gold Corp. has provided a metallurgical and mineralogical update for its world-class Metates gold-silver project located in Durango state, Mexico.

Alan Pangbourne, chief executive officer, commented: "We are very encouraged with the latest results from this phase of metallurgical test work. A systematic, methodological approach individually testing several parameters under different conditions is being undertaken in 42 columns. The results have identified certain parameters that provide the conditions where the leach technology oxidizes mineralization at a faster rate than our previous test work. Under these conditions, we believe the targeted oxidation curve will be achieved and provide the foundation for preparing the prefeasibility study early next year."

Metallurgical test work program

Since the company's last update in September, 2022 (NR04-2022), its metallurgical work has continued to investigate various parameters to improve the oxidation rates of its sulphide leach technology. The focus has included investigating several ways to accelerate the oxidation kinetics and to understand how to improve and optimize the oxidation rate.

The parameters tested during this stage of work include: (i) finer crushing sizes from one-half inch to three-eighth inches to one-fourth inch and the use of high-pressure grinding rolls (HPGR) to produce a very fine crush at approximately three millimetres; (ii) varying reagent strengths; (iii) targeting different pHs; (iv) testing on/off irrigation; (v) applying other oxidants; and (vi) varying air injection rates. Over 40 columns are currently under oxidation or cyanide leach.

The new conditions are showing very encouraging oxidation rates; the phase 3 columns have achieved an oxidation level of 15 per cent to 16 per cent in just 60 days, which, when compared with the initial sighter column, is 50 per cent faster, and for the phase 2 columns over 300 per cent faster. These phase 3 columns will be transitioned to cyanide leach once they achieve the target oxidation above 35 per cent.

Mineralogical investigations

At the completion of the phase 2 metallurgical test work, a comprehensive mineralogical program was initiated to analyze how the various sulphides were oxidizing. Twelve samples were taken from eight phase 2 columns (C2, C4, C5, C7, C10, C12, C14 and C16). Samples were both postoxidation or postoxidation and cyanide leach. Of these 12 samples, one-third were polished into thin sections for observation through a reflected light microscope (three samples), and the remaining were polished into pucks for scanning electron microscopy (SEM) -- microprobe analysis (nine samples). Within these nine microprobe samples, 103 areas of interest were identified for optical observation and in total 990 energy dispersive X-ray spectrometer chemical analyses were conducted on these areas to determine the minerals observed.

The mineralogical work identified several examples where the alkaline solution(s) had actively oxidized and transformed the sulphide minerals present within the Metates host rocks. Microprobe imaging of sample 11 shows an example of an iron sulphide marcasite mineral (another form of pyrite) that has been altered completely from its original chemistry, but the radial form of the mineral remains intact. The sulphur content within this mineral has been stripped away and replaced by oxygen, forming hematite, the same iron oxide that forms when iron rusts.

Sample 11 comes from column 12, which was an intrusive breccia sample from Metates that was crushed to one-half inch, and the sample examined was the passing 35-mesh-size fraction. This sample had been oxidized for 180 days with an alkaline solution prior to sampling for SEM microprobe work (no cyanide leaching was performed at this stage). This example highlights the breakdown of iron sulphide minerals through the oxidative leach technology. The partially exposed precious metals locked within are liberated and can be dissolved through the standard cyanide leach process typical of conventional oxide heap leaching projects.

Microprobe imaging of sample 7 captures an example of another iron sulphide mineral that was once pyrite, which is in the process of altering to hematite or limonite. This image shows the process of preferential mineral oxidation that has followed along the cleavage planes (structural fractures) of the mineral. Along these cleavage planes the sulphur from the pyrite has been stripped away and replaced with oxygen, transforming these regions into iron oxides, whereas in the centres, there are small core remnants of the original pyrite crystal.

Sample 7 is from column 12, which was an intrusive breccia sample from Metates that was crushed to one-half inch, and the sample examined was the passing 35-mesh-size fraction. This sample had been oxidized for 180 days with an alkaline solution, and cyanide leached for 90 days prior to sampling for SEM microprobe work. This example further collaborates and shows another pathway in which the oxidative leach technology breaks down the iron sulphide minerals and releases the precious metals locked within.

Microprobe imaging of sample 9 provides another example of the oxidation of an iron sulphide mineral that was once pyrite, now altering to hematite or limonite. This image captures the periphery of the pyrite mineral being oxidized first, and a transition zone and digestion boundary are clearly demarcated, creating a notable zonation.

Sample 9 is from column 4, which was a massive intrusive sample from Metates that was crushed to one-half inch, and the sample examined was the passing 35-mesh-size fraction. This sample had been oxidized for 180 days with an alkaline solution prior to sampling for SEM microprobe work. This example highlights another pathway in which the oxidative leach technology breaks down the iron sulphide minerals and releases the precious metals locked within.

Finally, reflected light microscope imaging of sample 8 discovered a native gold particle in the form of electrum. This identified electrum bleb is located within a pyrite crystal, and its existence signifies the presence of native gold within the Metates system, which is in addition to the gold known to be within the sulphide minerals.

Sample 8 is from column 16, which was an intrusive breccia sample from Metates that was crushed to one-half inch, and the sample examined was the passing 35-mesh-size fraction. This sample had been oxidized for 180 days with an alkaline solution, and cyanide leached for 90 days prior to sampling for mineralogy work.

Next steps

Chesapeake will continue to advance the metallurgical program. As the columns meet the oxidation curve target and switch to cyanide leaching, additional columns will be loaded and tested to confirm the improved oxidation rates. At the completion of this process, the results will be released outlining the oxidative curves and precious metal recoveries through cyanide leaching. Once sufficient metallurgical work is available, management plans to commence a prefeasibility study to further derisk Metates and advance the project toward the company's goal of developing one of America's largest gold and silver deposits.

In addition, the company is actively seeking other sulphide gold deposits where the leach technology can be applied to potentially unlock significant economic value.

Presently, Chesapeake remains well financed with almost $24-million in cash and cash equivalents.

Qualified person

Dr. Art Ibrado, PE, of Fort Lowell Consulting PLLC, is the independent qualified person responsible for the scientific and metallurgical technical information in this news release in accordance with National Instrument 43-101. The qualified person has reviewed and approved the contents of this release.

About Chesapeake Gold Corp.

Chesapeake Gold is focused on the discovery, acquisition and development of major gold-silver deposits in North and South America. Chesapeake's flagship asset is the Metates project located in Durango state, Mexico. Metates hosts one of the largest undeveloped gold-silver deposits in the Americas with over 16.77 million ounces of gold at 0.57 gram per tonne (g/t) and 423.2 million ounces of silver at 14.3 g/t within 921.2 million tonnes in the measured and indicated mineral resource category and a further 2.13 million ounces of gold at 0.47 g/t and 59 million ounces of silver at 13.2 g/t within 139.5 million tonnes in the inferred mineral resource category. See the technical report titled "Metates Sulphide Heap Leach Project Phase I" dated Jan. 13, 2023, and news release dated Feb. 23, 2023.

Chesapeake also has an organic pipeline of satellite exploration properties strategically located near Metates. In addition, the company owns 68 per cent of Gunpoint Exploration Ltd., which owns the Talapoosa gold project in Nevada.

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