Chesapeake Gold to sell Tatatila gold-copper project

Mr. Jean-Paul Tsotsos reports CHESAPEAKE GOLD ANNOUNCES SALE OF TATATILA PROJECT Chesapeake Gold Corp. has entered into a definitive agreement to sell its Tatatila gold-copper project located in Veracruz state, Mexico, to Mexican Gold Mining Corp. (TSX Venture Exchange: MEX) in exchange for such number of common shares of Mexican Gold representing 14.99 per cent of the outstanding common shares of Mexican Gold at closing and a 1.5-per-cent net smelter returns royalty. Mexican Gold may repurchase 0.5 per cent of the royalty (reducing the royalty to 1.0 per cent) for $500,000 (U.S.) within 10 years from the date of execution of the agreement. The consideration shares shall be subject to a lock-up, in addition to the statutory four-month-and-one-day hold period commencing on the date of the issuance. On the one-year anniversary of the date of issuance and every six months thereafter, 25 per cent of the consideration shares shall be released from the lock-up such that all consideration shares shall be released from lock-up 2.5 years from the date of issuance. Chesapeake has also agreed for a period of 2.5 years to vote the consideration shares in accordance with Mexican Gold management instruction. Tatatila is a gold-copper skarn district located in Veracruz state that Chesapeake identified in 2007. Tatatila surrounds Mexican Gold's Las Minas project, which has a reported National Instrument 43-101 mineral resource estimate and preliminary economic assessment. Several skarn prospects were discovered on Tatatila by Chesapeake, including possible extensions of the Las Minas existing resource. Closing of the transaction remains subject to TSX Venture Exchange approval, as well as customary closing conditions for a transaction of this kind. 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 Americas1 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. We seek Safe Harbor.