#201 - 1512 Yew Street 1620 - 1140 West Pender Street
Vancouver, B.C.
V6K 3E4 Vancouver, B.C.
V6E 4G1
March 4, 2010 NR 1-2010
NEWS RELEASE
Chesapeake Gold Corp.
agrees to sell its Talapoosa and La Cecilia gold-silver projects to
Christopher James Gold Corp.
in exchange for a controlling interest in Christopher James
Chesapeake Gold Corp.
("Chesapeake") (TSX-V: CKG) and Christopher James Gold Corp.
("Christopher
James") (TSX-V: CJG) are pleased to announce that a letter of intent has been signed today
(March 4, 2010) for the proposed acquisition by Christopher James of Chesapeake"s Talapoosa gold-silver
property ("Talapoosa") located in Nevada and the La Cecilia gold-silver property ("La Cecilia") located in
Sonora State, Mexico.
Pursuant to the terms of the letter of intent, Christopher James will acquire all of the issued shares of
Chesapeake"s wholly-owned subsidiary, American Gold Capital Corporation (which indirectly holds the
Talapoosa property) and La Cecilia from Chesapeake"s Mexican subsidiary, Minerales El Prado S.A.
de
C.V.
Concurrent with the closing of the proposed transaction, the shares of Christopher James, subject to
shareholder approval, will be consolidated on a 10:1 basis resulting in 5,524,475 post-consolidation shares
("Shares") (6,161,975 Shares fully-diluted) being issued to the existing shareholders of Christopher James.
If the proposed transaction with Chesapeake is approved, Christopher James will change its name to
Gunpoint Exploration Ltd.
and issue 18,485,924 post-consolidation shares to Chesapeake, representing
approximately 75% of the outstanding shares of Christopher James on a fully diluted basis.
The proposed
transaction is an arm"s length transaction and will constitute a reverse takeover of Christopher James as
defined by the policies of the TSX Venture Exchange.
Christopher James is a Canadian mineral exploration company with a large portfolio of gold projects in
Nevada and British Columbia.
The Company has experienced technical management and over $1,500,000
in treasury to pursue its gold exploration properties.
The acquisition of the Talapoosa and La Cecilia
properties will strengthen and complement Christopher James" recently optioned pipeline of Nevada gold
exploration projects.
The Talapoosa project is a low-sulphidation stockwork/breccia hosted epithermal gold-silver deposit.
Extensive exploration and development work has been completed including 71,000 meters of drilling along
with metallurgical test work and environmental studies.
In 1996 Miramar Mining Corporation cited a
measured and indicated resource of 42.7 million tons of 0.025 opt gold (1.06 million ounces) and 0.34 opt
silver (14.5 million ounces).
This estimate is historical, predates National Instrument 43-101 and should not
be relied upon for purposes of current classification.
In addition to this historical resource, Chesapeake has
identified two high-priority exploration targets on the Talapoosa property:
• Approximately 5 kilometers of potentially mineralized structure, associated with extensive
hydrothermal alteration and outcropping hydrothermal breccias bodies containing epithermal vein
fragments (presumably derived from underlying epithermal veins).
• Indications of a potentially higher-grade feeder structure beneath the existing resource at Talapoosa.
La Cecilia is a classic low sulfidation, epithermal gold-silver system associated with a rhyolite dome
complex.
The gold-silver mineralization occurs as a series of high grade vein structures over 1000 meters
of strike and as lower grade, broad zone of stockwork veinlets both surrounding the veins and following the
breccias within rhyolite domes.
Three meter channel samples up to 5.6 g/t gold and 26 g/t silver and local
high grade samples up to 53 g/t gold and 1128 g/t silver were collected across the dome complex.
In 1995
Cambior Inc.
conducted a shallow drill program and results include 30 meters grading 1.4 g/t gold and
42 meters grading 0.5 g/t gold.
Surface work carried out by Chesapeake identified a new prospective area
on the northern side of the dome with a channel cut returning 119 meters of 0.9 g/t gold including 2.3 g/t
gold over 30 meters.
The Cambior drill holes were orientated to test the stockwork vein zones and
consequently were drilled sub-parallel to the vein structures.
Initial exploration work will focus on better
defining the orientation and extent of outcropping zones of mineralization in preparation for a drill program.
Max Baker, President and CEO of Christopher James, commented, "The acquisition of Talapoosa gives the
company a tangible asset base and a project which can be rapidly advanced to pre-feasibility.
The
associated high-priority exploration targets have the potential to turn Talapoosa into a major asset, and this
objective will be the initial focus of our work at Talapoosa.
Meanwhile, we will push aggressively ahead with
the exploration on our existing earn-in joint venture agreements with AuEx Ventures Inc.
and Fortune River
Resource Corp which management believes have significant potential.
The acquisition of La Cecilia gives
us the opportunity to fast-track a promising near surface oxide gold prospect in Mexico as well.
Management of Chesapeake believes that the value of its Talapoosa and La Cecilia projects are not
recognized in the market nor reflected in its share price.
By vending these projects, management of
Chesapeake believes the value of these assets for its shareholders will be realized.
Chesapeake looks
forward to being a major shareholder and supporter of Gunpoint Exploration with Talapoosa and La Cecilia
as principal assets together with the opportunity of grassroots exploration leading to a potential new
discovery.
The Directors of both Chesapeake and Christopher James have approved the letter of intent.
Pursuant to
the letter of intent, Chesapeake has agreed not to solicit third party interests in American Gold Capital
Corporation or in the Talapoosa and La Cecilia properties and Christopher James has agreed to keep
Chesapeake fully informed of any material changes to Christopher James.
The proposed transaction is subject to execution of a definitive agreement by March 31, 2010, regulatory
approval including the TSX Venture Exchange, the approval of Christopher James" shareholders, and other
conditions.
Subject to the satisfaction of these conditions, the transaction is expected to be completed by
June 30, 2010 or such later date as may be agreed by the parties.
Completion of the transaction is subject to a number of conditions, including Exchange acceptance and
disinterested shareholder approval.
The transaction cannot close until the required shareholder approval is
obtained.
There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular to be prepared in
connection with the transaction, any information released or received with respect to this transaction may
not be accurate or complete and should not be relied upon.
Trading in the securities of Christopher James
should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has
neither approved nor disapproved the contents of this press release.
Mr.
Gary A.
Parkison, Project Manager is a Qualified Person for Chesapeake Gold Corp.
as defined by NI
43-101 and has reviewed the technical information contained in this release.
E.
Max Baker B.Sc.(Hons) PhD, Member AustIMM is the Qualified Person as defined by National
Instrument 43-101 for Christopher James Gold Corp.,and has reviewed the technical information contained
in this release.
For additional information please contact either,
P.
Randy Reifel, President, Chesapeake Gold Corp.
604-731-1094; or
Visit the Company"s website at www.chesapeakegold.com.
Dr.
E.
Max Baker, President, Christopher James Gold Corp.
604-408-8829
Visit the Company"s website at www.christopherjamesgold.com.
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.
Forward-Looking Statements:
All statements above that address activities, events or developments that either Chesapeake or Christopher James
believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to
completion of the transaction, funding availability, anticipated exploration results, resource estimates, and future
exploration and operating plans) are forward-looking statements.
These forward-looking statements reflect the current
expectations or beliefs of the two companies based on information currently available to the companies.
Forwardlooking
statements are subject to a number of risks and uncertainties that may cause the actual results of the two
companies to differ materially from those discussed in the forward-looking statements and, even if such actual results
are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or
effects on, the two companies.
Factors that could cause actual results or events to differ materially from current
expectations include, among other things, uncertainties relating to completion of the transaction, the availability and
cost of funds, timing and content of work programs, results of exploration activities, interpretation of drilling results and
other geological data, future metals prices, reliability of mineral property titles, changes to regulations affecting
activities, delays in obtaining or failure to obtain required project approvals, operational and infrastructure risks, and
other risks involved in the mining and exploration business.
Although Chesapeake and Christopher James believe that
the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be put on such statements due to their
inherent uncertainty.
