Mr. Jean-Paul Tsotsos reports

CHESAPEAKE ANNOUNCES PROPRIETARY HEAP OXIDATION TECHNOLOGY UPDATES

Chesapeake Gold Corp. has provided a progress update on its proprietary heap oxidation technology on its Metates project, located in Durango, Mexico.

Jean-Paul Tsotsos, chief executive officer, commented: "The first results from the third phase of Metates's metallurgical testing highlight several significant advances through our variability program, including the ability to maintain and improve precious metals recoveries while reducing oxidation times. The improvements are expected to provide several cost-economic benefits and the opportunity to further enhance production while lowering working capital and costs. In addition, the preliminary high-pressure grinding roll (HPGR) testwork under way offers another opportunity to further enhance recoveries. Industry interest in our technology is growing, with several third party projects participating in the testwork program as we execute on our commercialization strategy."

During the phase III variability testwork program, new procedures were implemented to better simulate actual mine operations. These procedures have been positive, achieving better gold and silver recoveries in a reduced 90-day oxidation time (as compared with the phase II 240-day and the phase I 180-day oxidation times). The massive intrusive domain from Metates, which represents a majority of the future mine plan, reacted well, with precious metal recoveries achieving 70 per cent for gold and 61 per cent for silver over the shortened 90-day oxidation phase. Compared with the phase I test program, gold recoveries increased significantly, while silver recoveries doubled as the oxidation time halved. More importantly, initial phase III recoveries were broadly similar to phase II, but they were achieved in nearly a third of the oxidation time.

Additionally, this same procedure was applied to the intrusive breccia domain from Metates. This domain represents a smaller portion of the overall deposit and overlays the massive intrusive, hosting similar precious metal grades. The procedure on this domain showed significant recovery improvement, with precious metal recoveries increasing to 57 per cent for gold and 60 per cent for silver over a similar 180-day oxidation phase. Compared with the phase I test program, precious metal recoveries nearly doubled over the same oxidation time. More importantly, initial phase III recoveries exceeded phase II recoveries over a shorter oxidation time.

The performance enhancements in massive intrusive and intrusive breccia highlight a pathway to increasing final precious metal recoveries while reducing required oxidation-phase processing time. Over all, this is expected to improve Metates's economics by reducing project capital and operating costs and lowering working capital requirements during mine ramp-up.

Comparative crushing tests were performed during phase III testwork to determine the potential benefits of conventional crushing versus an HPGR system. When run in parallel, direct cyanidation of the HPGR-crushed material showed marked improvement over conventional crushing, with gold and silver recoveries increasing by 16 per cent and 23 per cent to 47 per cent and 65 per cent, respectively. These results demonstrate the potential to increase baseline precious-metal recoveries before heap oxidation. The optimization phase metallurgical testwork to be conducted in preparation for the company's planned prefeasibility study (PFS) is intended to explore combining the HPGR system with the technology to reduce the oxidation phase and further increase final precious-metal recoveries.

Increased Metates silver recoveries

The phase III variability testwork focused on improving silver recoveries, given that Metates hosts one of the largest undeveloped silver deposits globally1 with 423.2 million ounces of silver at 14.3 grams per tonne within 921.2 million tonnes in the measured and indicated mineral resource category and a further 59.0 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. 22, 2023, the reliance on which remains contingent on the company's successful recovery of San Vicente 3.)

The initial results of the phase III program demonstrate several positive developments with silver recovery. The phase II program achieved 50-per-cent to 55-per-cent silver recovery, whereas the new test procedures in the variability program increased recoveries to approximately 60 per cent, and the HPGR program achieved 65-per-cent recovery in the absence of the technology. With over 400 million ounces of silver, a potential 15-per-cent increase in silver recoveries would have a significant positive impact on Metates project economics.

Metates large diameter and long residence variability columns

The two large diameter columns have completed the oxidation and cyanidation phases and are now being validated and reconciled with the analytical data collected throughout the program. The long residence variability columns covering the future mine plan are also in the validation and reconciliation stage. The planned PFS is expected to incorporate these key results to determine oxidation rates, input costs, capital estimates, and recoverable gold and silver ounces.

Growing pipeline of third party testwork

The first round of third party testwork is nearing completion, with results to be released when available. Interest in the technology's sulphide precious metal unlocking capability has continued to gain momentum. The company has received samples from three new projects, bringing the total number of projects participating in the technology testwork to six. This testwork continues in parallel with the Metates test program to demonstrate the technology's applicability across a wide range of deposits and to support Chesapeake's strategy to commercialize the process and generate a significant stream of economic value.

Next steps: Metates optimization phase metallurgical program and planned prefeasibility study

Testwork continues to build on phase III results, expand the HPGR program with heap oxidation and develop plans for a pilot plant demonstration facility.

Concurrently, the company is also advancing several workflows associated with the planned Metates PFS. The timing of the PFS remains contingent on the successful recovery of the San Vicente 3 concession to achieve the optimal valuation for this study.

The company intends to release the remaining results for the phase III program and third-party testwork as they become available.

Qualified persons

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 persons have reviewed and approved the contents of this release.

About Chesapeake Gold Corp.

Chesapeake Gold'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 59.0 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. 22, 2023.

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