Vancouver, British Columbia--(Newsfile Corp. - March 28, 2023) - Couloir Capital Ltd. is pleased to announce it has updated research coverage on Chesapeake Gold Corp. (TSXV: CKG) (OTCQX: CHPGF). The new report is titled, "Resource Update Yields Higher Grades, Metallurgical Testwork Provides Proof of Concept "

Report excerpt: "The updated resource estimate coming off the improved resource grading follows CKG having earlier announced in 2022 that drilling results from a 23-drill-hole campaign (covering approximately 7,485 meters) had returned assay grades that averaged significantly above internal block model inputs used in previous resource estimation for Metates. As covered in our previous update, the 2022 assays averaged 23% higher than CKG's block model, which was built on 2021 drilling where assay grades averaged over 18% higher than suggested block model grades. Given the turnaround on cycling assay results into an updated resource, we believe the company has built its credibility to communicate and forecast potential resource upgrades to the market, which can be important in telegraphing catalysts.

The update to Metates' resource estimate is significant given the change in the mineral asset base represented by estimated gold-equivalent ounces in the ground. As covered in our valuation section, the EV/ net resource metric is a significant contributor to our estimation of CKG's intrinsic valuation, and has been throughout Couloir Capital's coverage of the company. As a result, absolute increases or decreases in the net resource of CKG should have a material impact on our valuation of the company (before accounting for movement in peer multiples and its impact on CKG's relative value). Though the absolute size of Metates' net resource has decreased, based on our discussions with management, the grade improvement on the overall resource is expected to result in better project unit economics (relative to Metates' PEA projections). Whilst we were unable to verify this, if true, the resource update could offset the net resource decrease with valuation leverage on the future PFS NPV for the project. This would arise if the net free cash flow from production estimated in a future PFS was projected to increase relative to the PEA based on lower unit costs. However, this requires confirmation from the future Metates PFS."

The report can be accessed through Couloir Capital's portal:

About Couloir Capital Ltd.

Couloir Capital Ltd. is an investment research firm comprised of a team of veteran investment professionals dedicated to providing opportunities in the natural resource exploration and development sectors. Couloir Capital Ltd. is affiliated with a registered securities dealer, Couloir Securities Ltd.

For further information, please contact:

Rob Stitt, Managing Director, Couloir Capital Ltd.

Email: rstitt@couloircapital.com

Analyst Disclosure:

1. The analyst and/or affiliated companies do not hold shares or warrants in Chesapeake Gold.
2. Couloir Capital Ltd. has been retained under a service agreement by Chesapeake Gold. This service agreement includes analyst research coverage.

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