Chesapeake's Metates Pre-Feasibility Study to Be Released in

Chesapeake's Metates Pre-Feasibility Study to Be Released in January
2013 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/28/12 -- Chesapeake
Gold Corp. (TSX VENTURE:CKG) ("Chesapeake") wishes to report on the
current status of the pre-feasibility study ("PFS") on its 100% owned
Metates project located in Durango State, Mexico. The Metates project
is one of the largest undeveloped gold-silver projects in the
Americas.  
The Metates gold-silver project has forecast annual production of
759,000 ounces of gold and 19,959,000 ounces of silver over a 19 year
mine life based on the Preliminary Economic Assessment ("PEA")
released by M3 Engineering & Technology ("M3") in March 2011. The PFS
that is near completion will be based on the same 120,000 tonnes per
day processing rate but incorporate optimized processing circuits and
site layouts as well as lower energy costs.  
During the past six months a number of studies critically important
to the PFS have been undertaken by several industry-leading
consultants which have resulted in positive developments with respect
to water sourcing and management, electric power, mine reclamation
and closure. Currently, M3 is integrating the results of these
studies with their own work which includes finalizing the capital and
operating cost inputs into the project economic model.  
In late November the Mexican government completed the award process
for the various segments of the new 1,271 kilometer natural gas
pipeline to be constructed down the west coast. Sempra Energy and
TransCanada Pipeline will construct the pipeline which is slated to
start mid-2013 with targeted completion of the segment near the
Ranchito processing site during 2016. As a result, Chesapeake's
energy consultants have been able to define the capacity,
configuration and optimum location for the dedicated gas fired power
plant to deliver the lowest, long term electric power cost to the
Metates project. Compared to the coal-fired power plant assumed in
the PEA, the gas power plant will offer significantly lower power
costs while improving environmental management. The ability to
utilize natural gas will also provide flexibility for future
operational enhancements as well as recognizing that over 35% of the
project's operating costs are directly attributed
 to power.   
During the past few weeks, Chesapeake's consultants completed the
optimization of the oxygen purity requirements for the autoclave
circuit together with the related power demand and layout for the
dedicated oxygen plant. At the Ranchito site the design of the
co-disposal facility to store the cyanide leach tailings and
neutralization products has been finalized to achieve maximum water
recovery while minimizing the facility footprint and potential
geo-hazard risks. Tailings filtration along with other innovative
water management measures adopted at both sites, now result in an
overall reduction of approximately 60% in the project's water
consumption as compared to the conventional tailings management
practices envisioned in the PEA. Furthermore, the integrated waste
management practices to be incorporated into the PFS will allow for
concurrent reclamation and the development of sustainable closure
scenarios that significantly reduce both short-term and long-term
environmental risk.   
Mr. Randy Reifel, President of Chesapeake said, "While it is
unfortunate that the results of the PFS will not be available this
year, the delay has resulted in significant and fundamental
improvements to the PFS. We are pleased with the technical work that
has contributed to such a high quality study in terms of responsible
development and mining best practices. We are confident that the
results of the PFS to be released in January will uniquely position
the large scale Metates project as one of the most significant
gold-silver-zinc producers in a stable political jurisdiction and
with superior economic returns."  
Currently, Chesapeake has $44 million in cash and marketable
securities.  
Gary Parkison, CPG, Chesapeake Vice President Development and a
Qualified Person as defined by NI 43-101, has reviewed and approved
the technical information contained in this release.  
CHESAPEAKE GOLD CORP  
P. Randy Reifel, President 
FORWARD-LOOKING STATEMENTS 
Some of the statements contained in this release are forward-looking
statements, such as estimates and statements that address future
events and conditions that describe the Company's future plans,
objectives or goals which are subject to various risks and
uncertainties in relation to the Company. The assumptions used in the
preparation of such statements although considered reasonable at the
time of preparation may prove to be imprecise and as such, actual
results in each case could differ materially from those currently
anticipated in such statements. The Company does not intend to, and
does not assume any obligation to update such forward-looking
statements or information, other than as required by applicable law. 
Neither TSX Venture Exchange nor its Regulation Services Provider (as
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. 
Contacts:
Chesapeake Gold Corp.
Investor Relations
604 731 1094
www.chesapeakegold.com