Chesapeake Gold Announces Sale Of Tatatila Project

(MENAFN- Newsfile Corp) Vancouver, British Columbia--(Newsfile Corp. - October 1, 2025) - Chesapeake Gold Corp. (TSXV: CKG) (OTCQX: CHPGF) (" Chesapeake " or the " Company ") announces that it has entered into a definitive agreement to sell its Tatatila gold-copper project (" Tatatila ") located in Veracruz State, Mexico to Mexican Gold Mining Corp. (TSXV: MEX) (OTCQB: MEXGF) (" Mexican Gold ") in exchange for such number of common shares of Mexican Gold representing 14.99% of the outstanding common shares of Mexican Gold at closing (the " Consideration Shares ") and a 1.5% net smelter returns royalty (the " Royalty "). Mexican Gold may repurchase 0.5% of the Royalty (reducing the Royalty to 1.0%) for US$500,000 within ten (10) years from the date of execution of the agreement.

The Consideration Shares shall be subject to a lock up (the " Lock Up "), in addition to the statutory four month and one day hold period commencing on the date of the issuance. On the one (1) year anniversary of the date of issuance and every six (6) months thereafter, 25% of the Consideration Shares shall be released from the Lock Up such that all Consideration Shares shall be released from Lock Up two and a half (2.5) years from the date of issuance. Chesapeake has also agreed for a period of two and one-half (2.5) years to vote the Consideration Shares in accordance with Mexican Gold management instruction.

Tatatila is a gold-copper skarn district located in Veracruz State that Chesapeake identified in 2007. Tatatila surrounds Mexican Gold's Las Minas Project, which has a reported NI 43-101 Mineral Resource Estimate and Preliminary Economic Assessment. Several skarn prospects were discovered on Tatatila by Chesapeake, including possible extensions of the Las Minas existing resource.

Closing of the transaction remains subject to TSX Venture Exchange approval, as well as customary closing conditions for a transaction of this kind.

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