Chieftain Closes Flow-Through Private Placement for Its 2013 Exploration Campaign

TORONTO, ONTARIO--(Marketwired - Aug 6, 2013) - Chieftain Metals Corp. ("Chieftain" or the "Company") (TSX:CFB) is pleased to announce that it has issued 1,250,000 flow-through shares at $0.80 per share for gross proceeds of $1,000,000 in a non-brokered private placement transaction to finance the Company's 2013 exploration campaign. In connection with the closing today, the company is paying finders' fees equal to 7% of the gross proceeds and issuing finders' warrants equal to 6% of the number of flow-through shares issued. Each finders' warrant is exercisable for 12 months into common shares at $0.80 per common share.

Mr. Victor Wyprysky, President and CEO stated, "Under the current market conditions, we are pleased to close the first tranche of financing our 2013 exploration campaign which will allow Chieftain to test specific targets selected as part of the conclusions arrived at from the geological reinterpretation of the Tulsequah Chief and Big Bull areas recently announced."

A desktop review of decades of exploration data and reports yielded significant targets near the Tulsequah Chief Mine as well as regionally (see the Company's press release dated May 29, 2013). The potentially mine-size Induced Polarization Inversion targets near the Tulsequah Chief Mine are the first priority given their geological features, followed by the regional targets at Big Bull and Banker-Sparling areas.

About Chieftain Metals Corp.:

Chieftain Metals Corp. is the public holding company of Chieftain Metals Inc. ("Chieftain Inc."), whose principal business is the acquisition, exploration and development of mineral properties. Since incorporation, the Company's business has focused entirely on the acquisition, and thereafter the development, of the Tulsequah Chief Polymetallic Project, in north-western British Columbia, Canada. Chieftain Metals Inc.'s property consists of 54 mineral claims and Crown-grants covering approximately 30,547 hectares and covers two previously producing mines. For more information on Tulsequah and related projects, please refer to the NI 43-101 compliant technical reports, being "Technical Report for the Tulsequah Chief Project of Northern British Columbia, Canada" with an effective date of December 12, 2012 as well as "Tulsequah Chief Deposit, Tulsequah Chief Property, Northern British Columbia" and "Big Bull Project, Tulsequah Chief Property, Technical Report, Northern British Columbia", each dated as of November 8, 2010, which are available under the Company's profile on SEDAR (www.sedar.com).

Forward-Looking Information:

This press release contains forward-looking information. This forward-looking information includes statements with respect to, among other things, the Private Placement, the expected timing of closing subsequent tranches of the Private Placement and the proposed development of the Tulsequah Chief project, Big Bull and the Company's other mineral properties. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the inherent risks involved in the exploration and development of minerals properties, the inherent volatility of metal prices, the risk that the Company may not be able to complete additional financing or arrange the necessary additional financing to construct and operate the Tulsequah Chief mine, the possibility of delays in the commencement of production from the Tulsequah Chief mine and other factors. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no responsibility to update or revise it to reflect new events or circumstances, except as required by law.