Chesstown Capital Inc. (TSX VENTURE: CHC.H) Announces the Signing of a Non-Binding Letter of Intent for Its Proposed Qualifying

  Letter of Intent

Chesstown Capital Inc. ("Chesstown") (TSX VENTURE: CHC.H) is pleased to announce that on December 10th, 20 10, it entered into an arm's length and non-binding letter of intent ("LOI") with Apex Royalty Corporation ("Apex") pursuant to which Chesstown will, subject to a number of conditions, acquire all of the issued and outstanding shares of Apex. Apex owns an option to acquire an undivided one hundred percent legal and beneficial interest in and to certain mining claims located in northern Ontario (the "Transaction").

Chesstown is a Capital Pool Company under the policies of the TSX Venture Exchange ("TSXV") and it is intended that the Transaction, if completed, will constitute Chesstown's Qualifying Transaction under TSXV policies. It is anticipated that the Resulting Issuer will meet Tier 2 listing requirements of the TSXV for a Mining Issuer upon completion of the Transaction.

A comprehensive news release will be issued upon the reaching of an Agreement in Principle between Chesstown and Apex.

TSXV Approval

Completion of the Transaction is subject to a number of conditions, including but not limited to, TSXV acceptance and if applicable pursuant to TSXV requirements, majority of the minority shareholder approval. Where applicable, 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 or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

For Investors

This press release may include statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Chesstown cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Future events and results may vary substantially from what Chesstown currently foresees. Discussion of the various factors that may affect future results is contained in Chesstown's recent filings, available on SEDAR.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contacts: Chesstown Capital Inc. Brian Crawford CEO 905-681-1925 [e-mail]