Chesapeake Closes $12 Million Brokered and $3 Million Non-Brokered Private Placements

Vancouver, August 28, 2019 - Chesapeake Gold Corp. (TSXV: CKG) (OTCQX: CHPGF) ("Chesapeake" or the "Company"), is pleased to announce closing of the previously announced bought-deal private placement (the "Brokered Offering") and the concurrent non-brokered private placement (the "NonBrokered Offering", and together with the Brokered Offering, the "Offerings"), for aggregate gross proceeds to the Company of $15,003,000.

Through the Brokered Offering, which was underwritten by Mackie Research Capital Corporation as sole underwriter and bookrunner (the "Underwriter"), the Company issued 5,334,000 common shares at a price of $2.25 per share for gross proceeds of $12,001,500. The Underwriter received a 4% cash commission of the gross proceeds of the Brokered Offering.

Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired the 5,334,000 common shares pursuant to the Brokered Offering. Prior to the Brokered Offering, Mr. Sprott beneficially owned and controlled 244,599 common shares of the Company representing approximately 0.5% of the issued and outstanding common shares of Chesapeake on a non-diluted basis. As a result of the Brokered Offering, Mr. Sprott beneficially owns and controls 5,578,599 common shares of the Company representing approximately 10.9% of the issued and outstanding common shares of Chesapeake on a nondiluted basis.

The common shares were acquired by Mr. Sprott, through 2176423 Ontario Ltd., for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company including on the open market or through private acquisitions or sell securities of the Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of 2176423 Ontario Ltd.'s early warning report will appear on the Company's profile on SEDAR and may also be obtained by calling (416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

Through the Non-Brokered Offering, the Company issued 1,334,000 common shares to the Sun Valley Master Gold Fund, Ltd. on the same terms as the Brokered Offering, for gross proceeds of $3,001,500.

President of Chesapeake, Randy Reifel stated, "We are pleased to have the continued confidence of Eric Sprott and the market awareness of his strategic investment. The financing further strengthens our pace to advance the significant project pipeline being developed around Metates. As well, Chesapeake is evaluating newly developed metallurgical technologies that may potentially lower Metates capital and operating costs by simplifying the process flow sheet."

The net proceeds from the Offerings will be used by Chesapeake for working capital and general corporate purposes. The common shares issued under the Offerings will have a hold period of four months and one day from the date hereof.

About Chesapeake

Chesapeake Gold Corp. is a development stage company focusing on the discovery, acquisition and development of major gold-silver deposits in North and Central America. The Company's primary asset is the Metates project ("Metates") located in Durango State, Mexico. Metates hosts one of the largest undeveloped gold-silver-zinc deposits in the Americas.

Chesapeake also has a portfolio of exploration properties in Mexico comprising 118,530 hectares in the states of Durango, Sinaloa, Oaxaca and Veracruz. The Company owns 74% of Gunpoint Exploration Ltd., which owns the Talapoosa gold project in Nevada and two Mexican properties, La Gitana and La Cecilia.

For Further Information:

For more information on Chesapeake and its Metates Project, 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 the 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" which may include, but is not limited to, statements with respect to the use of proceeds of the Offerings. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on various assumptions.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the receipt of applicable regulatory approvals, general business, economic, competitive, political and social uncertainties; the actual results of exploration activities; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry, and political instability. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

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