VANCOUVER, BRITISH COLUMBIA, Sep 21, 2012 (MARKETWIRE via COMTEX) — Chesapeake Gold Corp. /quotes/zigman/308689 CA:CKG +1.23% (“Chesapeake”) reports on the current status of the pre-feasibility study (“PFS”) on its 100% owned Metates project located in Durango State, Mexico. The Metates project contains a NI 43-101 measured and indicated resource of 19.0 million ounces gold and 519 million ounces silver together with 4.2 billion pounds of zinc (see NR2-2012 dated February 16, 2012) making it one of the largest undeveloped gold-silver projects in the Americas.

All of the work related to the design and engineering of the major scoping changes that were announced earlier this year (see NR5-2012 dated May 25, 2012) has now been completed. M3 Engineering & Technology, the lead PFS consultant, is now integrating the results of these significant modifications, including the larger capacity zinc SX/EW plant and filtered tailings facilities at Metates into the cost model for the PFS.

Another important development which is nearing completion are the water conservation measures that have been integrated into the development of the Metates mine and Ranchito process sites. These measures include the capture and storage of water at the Metates site and adoption of dry filtered tailings at the Ranchito site significantly reducing the footprint of this co-disposal storage facility. The efficient water management practices at both sites have effectively made them self-sufficient in terms of average annual water demand based on the current project wide water balance model and historical climate records.

The Mexican government has recently provided additional information on the general routing and anticipated delivery date of natural gas from the proposed new pipeline to be constructed down the west coast. In Sinaloa state, the pipeline will pass within about 50 kilometers of the Ranchito site. The long term positive implications of a gas powered electrical utility and efficient generation of oxygen for the autoclave circuit are significant. As a result, Chesapeake’s consultants are now finalizing the optimum size of the dedicated power plant to match up with the project’s electrical demand load and operational cost benefits stemming from a direct gas feed to the process site.

Given the industry trends of escalating capital and operating cost estimates indicative of successive studies performed over the last few years, management is placing increased scrutiny on the estimation of these costs by all of the consulting groups contributing to the PFS. Such scrutiny will ensure the integrity and credibility of the PFS which has also contributed to the delay of its completion in Q4.

Mr. Randy Reifel, President of Chesapeake said, “The near completion of the energy and water conservation studies is meaningful to the technical and economic integrity of the PFS. The overall level of work supporting the PFS is very high, and in many cases at full feasibility level. We continue to believe that the results of the PFS will confirm that this project has the potential to be a low cash cost, long lived precious metal producer with excellent project economics.”

Currently, Chesapeake has $48 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.

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