Chesapeake Announces Completion of $15.0 Million Private Placement

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/21/10 -- Chesapeake Gold Corp. ('Chesapeake') (TSX VENTURE: CKG) is pleased to announce that it has completed the $15.0 million brokered private placement (the 'Private Placement') of 1,463,414 common shares of Chesapeake at $10.25 per share announced in its news release of December 9, 2010.

The Private Placement was conducted on a best efforts agency basis by a syndicate co-led by Byron Securities Limited and GMP Securities L.P. and including Mackie Research Capital Corporation (collectively, the 'Agents'). The Company paid the Agents a cash commission equal to 5.5% of the aggregate gross proceeds of the Private Placement.

The common shares of Chesapeake issued pursuant to the Private Placement are subject to a hold period which expires on April 22, 2011. In connection with the Private Placement, two insiders of Chesapeake completed a 'gypsy swap' transaction pursuant to which they sold through the Pure trading facilities of CNSX Markets Inc. an aggregate of 682,927 common shares of Chesapeake at a price of $10.25 per share and subsequently utilized the proceeds from the sale to purchase, through the Private Placement, an equal number of common shares of Chesapeake at $10.25 per share.

The Private Placement is subject to final approval of the TSX Venture Exchange.

About Chesapeake:

Chesapeake is focused on developing its flagship Metates Project in Mexico. The Company's management team has a strong track record of mineral discovery and mine development in Latin America. M3 Engineering and Technology of Tucson, Arizona recently completed a positive Preliminary Economic Assessment ('PEA') on the Metates project in Durango state. The PEA forecasts a 27 year mine life with the expected recovery of 14.8 million ounces of gold, 391 million ounces of silver and 2.4 billion pounds of zinc. During the first seven years of full production, the PEA estimates average annual production of 600,000 ounces of gold and 22 million ounces of silver with low cash costs and fast payback of capital. Net proceeds from the private placement will fund the completion of a Pre-feasibility study in late 2011.

For more information, please visit our website at www.chesapeakegold.com.

CHESAPEAKE GOLD CORP

P. Randy Reifel, President

CAUTIONARY DISCLAIMER - 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 the proposed use of proceeds from the Private Placement and plans and prospects regarding the Metates Project. 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; as well as those factors described in the section 'risk factors' contained in the Company's most recent MD&A filed with the Canadian securities regulatory authorities. 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is 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