Mr. Randy Reifel reports

CHESAPEAKE GOLD ARRANGES $20 MILLION PRIVATE PLACEMENT FINANCING

Chesapeake Gold Corp. has arranged a non-brokered private placement of four million common shares at a price of $5 per share for gross proceeds of $20-million. Of that amount, $15-million is being placed with Eric Sprott's company, 2176423 Ontario Ltd., a large shareholder of Chesapeake holding 11.8 per cent of the current issued and outstanding common shares. The Sun Valley Gold Master Fund Ltd., an existing shareholder that holds 7.4 per cent of the current issued and outstanding common shares, is subscribing for $5-million of the private placement.

After completion of the private placement, Mr. Sprott will beneficially own and control 9,089,099 common shares, representing approximately 16.4 per cent of the issued and outstanding common shares. The Sun Valley Gold Master Fund will own 4,790,138 common shares, representing approximately 8.6 per cent of the issued and outstanding common shares.

The proceeds of the financing will be used to undertake Metates metallurgical test work and continuing regional exploration, and for general working capital. There are no finders' fees or other commissions associated with the private placement.

Randy Reifel, president, stated: "Metates is world class with proven and probable reserves of over 18 million ounces of gold, 500 million ounces of silver and four billion pounds of zinc in a pro-mining Mexico jurisdiction. Eric Sprott and Sun Valley Gold Master Fund continue to be strong supporters and recognize as major shareholders this compelling opportunity in a record-high gold and silver market. We believe the potential future development of Metates together with the satellite exploration project pipeline will create long-term significant value for our shareholders."

The private placement is subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The common shares to be issued under the private placement will be subject to a hold period under applicable Canadian securities laws until four months after the closing of the private placement.

The private placement involves a related party transaction within the meaning of TSX-V Policy 5.9 and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions adopted in the policy. The company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the private placement as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction is expected to exceed 25 per cent of the company's market capitalization (as determined under MI 61-101).

About Chesapeake Gold Corp.

Chesapeake is a development-stage company focusing on the discovery, acquisition and development of major gold-silver deposits in North and Central America. Chesapeake's flagship asset is the Metates project located in Durango, Mexico. Metates hosts one of the largest undeveloped gold-silver-zinc deposits in the Americas.

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