Chesapeake Updates Regional Exploration Program

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 7, 2017) - Chesapeake Gold Corp. ("Chesapeake") (TSX VENTURE:CKG) is pleased to provide an update on the regional exploration program conducted near its 100% owned Metates project in Durango and proposed El Paso plant site in Sinaloa States, Mexico. Metates hosts one of the largest undeveloped gold, silver and zinc reserves in the world. Four precious and base metal projects with district scale potential have been identified and systematically advanced in 2016 and 2017. Currently, Chesapeake's regional land position totals more than 85,000 hectares.

The four projects are strategically located along a prolifically mineralized corridor that parallels the Pacific coast and lies along the western margin of the Sierra Madre Occidental. Two projects, Yarely and El Paso, are located within 15 kilometers of paved highways and 25 kilometers of the El Paso plant site. Chesapeake believes this highly prospective, under-explored region could develop an organic pipeline of high value projects with potential synergies with the future development of Metates.

Yarely, Sinaloa

On-going regional reconnaissance northwest of the El Paso plant site has identified a large area of extensive alteration hosting several mineralized hydrothermal systems. A systematic program of geological mapping, trenching, and channel sampling has defined three multi-phase mineralized zones (North, Central and South) within an open corridor over 4 kilometers long and up to 2 kilometers wide. Through staking and acquisition, Chesapeake has assembled a 70,000 hectare land package at Yarely.

Yarely North hosts a swarm of north-south trending high grade quartz carbonate epithermal veins hosted within coarse and medium grained sandstone Mapping and sampling has discovered over 100 historical workings from the Spanish Colonial period. The Spaniards mined high grade oxide veins to an average depth of 20 meters which overlies a sulfide zone at depth. Chesapeake has traced 12 veins ranging up to 11 meters in width each with an average strike length of 650 meters. Surface and underground channel samples returned values of 2 meters of 19.5 g/t gold and 505 g/t silver, 11 meters of 1.1 g/t gold and 42 g/t silver, 8 meters of 1.6 g/t gold and 33 g/t silver and 3 meters of 1.1 g/t gold and 805 g/t silver. The vein complex remains open laterally and along strike.

Yarely Central contains several wide zones of quartz stockwork and disseminated polymetallic mineralization hosted in highly altered sedimentary rocks. The mineralized area measures 1.5 by 2.0 kilometers. Channel samples collected from trenches reported 14 meters of 1.5 g/t gold and 143 g/t silver, 93 meters of 17 g/t silver and 36 meters of 0.7 g/t gold and 26 g/t silver.

Preliminary sampling within breccias, veins and disseminations at Yarely South has discovered silver, copper and molybdenum mineralization with channel samples up to 83 g/t silver, 2.9% copper and 0.12% molybdenum.

An 80 line-kilometer IP/Resistivity geophysical survey is currently underway. Preliminary results have defined anomalies that are coincident with the mineralized zones at both Yarely North and Central. At Yarely North, structures can be followed on the resistivity sections to depths of over 300 meters. At Yarely Central, a strong chargeability anomaly 500 meters wide indicates a sulfide-bearing body extends to over 400 meters depth. Two preliminary chargeability anomalies have been defined at Yarely South.

One anomaly is coincidental with a 250 meter wide molybdenum mineralized breccia. The second anomaly is a blind 250 meter wide zone.

The final interpretation of the geophysics program at Yarely will be integrated with the geology and geochemistry to prioritize drill targets. A 5,000 meter drill program is planned for Q3 pending permit approvals.

El Paso, Sinaloa

The El Paso district is located northwest of the town of Cosala and covers more than 150 square kilometers near the El Paso processing site. The district hosts extensive polymetallic exoskarn and intrusive-hosted quartz stockwork zones. Channel samples within wollastonite-magnetite-garnet skarn returned 69 meters of 2.2 g/t gold, 8 g/t silver and 1.1 % zinc and 50 meters of 0.6 g/t gold and 12 g/t silver within the quartz stockwork. A combined Magnetometer-IP/Resistivity survey is planned later this year to delineate drill targets.

Nicole, Durango

Nicole is located 45 kilometers northwest of the Metates deposit within a regional hydrothermal alteration zone spanning over 12 square kilometers. Over a vertical extent of one kilometer, quartz breccia veins transition to disseminated and stockwork mineralization at depth. Channel samples from the upper levels e returned values of 7 meters of 3.1 g/t gold, 238 g/t silver and 0.3% zinc and 3 meters of 12 g/t gold and 450 g/t silver. Lower in the system, channel sampling of disseminated and stockwork mineralization has returned results of 135 meters of 0.8 g/t gold, 16 g/t silver, and 0.7% zinc and 35 meters of 0.7 g/t gold, 20 g/t silver and 0.5% zinc. Limited historic core drilling targeting the disseminated and stockwork mineralization returned intercepts of 30 meters of 1.2 g/t gold, 29 g/t silver and 1.5% zinc and 30 meters grading 0.7 g/t gold, 19 g/t silver and 0.7% zinc. A 45 line-kilometer IP/Resistivity survey has defined a large 1.0 by 1.5 kilometer coincident low resistivity/ high chargeability anomaly which underlies the area of drilling.

San Javier, Durango

San Javier is located 10 kilometers south of the Metates deposit. Reconnaissance stream sediment geochemistry followed by detailed geologic mapping and rock chip sampling led to the discovery of the San Javier project. Two different mineralized zones have been defined within a 15 square kilometer alteration zone. Sampling of the 4 kilometer long northeast trending quartz-silver stockwork zone has returned values of 60 meters of 71 g/t silver and 0.6% lead and 28 meters of 158 g/t silver and 0.3% lead. A 3 kilometer long northwest trending zone of structurally associated breccia has returned sample values of 48 meters of 1.0 g/t gold. An IP/Resistivity survey and trenching program is planned later this year.

"We are very excited by the exploration results from these emerging new districts" states Randy Reifel, President. "Generative studies and systematic work at Yarely has defined five mineralized zones that warrant drilling. A greenfield discovery at Yarely or El Paso would have the strategic advantage of capitalizing on any future development of a process plant and infrastructure for Metates."

Chesapeake continues its regional exploration activities around the Yarely camp following up encouraging stream sediment anomalies and new mineralized targets with assays pending. The geophysics program is expanding the grid and mechanized trenching and sampling is extending the known zones of mineralization.

Presently, Chesapeake is well funded with C$20 million in working capital.

ALS Global was the analytical laboratory used for the samples included in this release. Sample preparation was primarily performed in Hermosillo, Mexico with analyses done in Vancouver, Canada.

Alberto Galicia, P. Geo, Vice President Exploration for Chesapeake and a Qualified Person as defined by NI43-101, has reviewed the technical information in this release.

For more information on Chesapeake and its Metates Project and regional exploration program, please visit our website at www.chesapeakegold.com or contact investor relations at 604-731-1094.

CHESAPEAKE GOLD CORP

"P. Randy Reifel"

P. Randy Reifel

President

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING STATEMENTS

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward looking statements and information herein include, but are not limited to, statements regarding prospective gold, silver and related metal production, timing and expenditures to explore and develop prospective mineral properties, gold, silver and related metal resources, grades and recoveries, cash costs per ounce, capital and operating expenditures and sustaining capital and the ability to fund mine development. 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. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Chesapeake and its operations to be materially different from those expressed or implied by such statements. Such factors include, among others: ability to finance mine development, fluctuations in the prices of gold, silver and zinc, fluctuations in the currency markets (particularly the Mexican peso, Canadian dollar and U.S. dollar); changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining(including environmental hazards, industrial accidents, unusual or unexpected geological conditions, pressures, cave-ins and flooding);inadequate insurance, or inability to obtain insurance; availability of and costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, diminishing quantities or grades of mineral reserves as properties are mined; risks in obtaining necessary licenses and permits, and challenges to the Company's title to properties. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward- looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.