Chesapeake Announces $15 Million Private Placement

NEWS RELEASE December 9, 2010 Symbol: TSX V-CKG NR11-2010

CHESAPEAKE ANNOUNCES $15 MILLION PRIVATE PLACEMENT

Chesapeake Gold Corp. (“Chesapeake” or the “Company”) is pleased to announce that it has engaged a syndicate of agents co-led by Byron Securities Limited and GMP Securities L.P., and including Mackie Research Capital Corporation (collectively, the “Agents”) to arrange a brokered private placement of common shares of Chesapeake (the “Common Shares”) at a price of $10.25 per common share to raise aggregate gross proceeds of up to $15,000,000. The Company has agreed to pay the Agents a cash commission equal to 5.5% of the aggregate gross proceeds of the private placement.

The Common Shares issuable pursuant to the private placement will be subject to a hold period expiring four months and one day following the closing of the private placement. In connection with the private placement, certain insiders of the Company may complete a “gypsy swap” whereby they would sell up to 700,000 common shares of Chesapeake in prearranged trades over the facilities of the TSX Venture Exchange, and then purchase up to 700,000 Common Shares under the private placement subject to regulatory approval, including final approval of the TSX Venture Exchange.

The closing of the private placement is expected to occur on or about December 21, 2010 and is subject to the approval of the TSX Venture Exchange.

Proceeds from the private placement will be used to fund ongoing exploration and development work at the Company’s flagship Metates gold project in Durango state, Mexico, and for general corporate purposes.

For more information, 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

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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 anticipated completion of the private placement and the proposed use of proceeds from the private placement. 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.