Chaparral Gold Responds to Hostile Proposal

SCOTTSDALE, AZ, Feb. 18, 2014 /CNW Telbec/ - Chaparral Gold Corp ("Chaparral" or "Company") (TSX: CHL) announces that its Board of Directors will meet in the immediate future to consider the unsolicited hostile takeover offer announced by Waterton Precious Metals Fund II Cayman, LP ("Waterton") on February 18, 2014 to acquire 100% of the common shares of the Company for C$0.50 per share in cash.

Waterton's unsolicited offer represents proceeds to the shareholders of the Company of approximately C$58.8 million. Net of the Company's estimated working capital, this unsolicited offer implies a negative value for the Company's mineral properties.

The Company will update its shareholders following the Board of Directors' meeting. In the meantime, shareholders are urged to take no actions in connection with the Waterton offer at this time.

The Company has engaged Maxit Capital as its financial advisors and Axium Law Corporation as its legal advisors to assist in responding to this unsolicited takeover attempt.

About Chaparral Gold

Chaparral is a Nevada-focused precious metals company actively permitting the 100%-owned Gemfield deposit at the Goldfield property, in central Nevada. In addition to the Goldfield property, Chaparral holds a 100% interest in the advanced-stage Converse property, also located in Nevada. As at February 18, 2014, the Company had 117,636,376 common shares issued and outstanding.

At December 31, 2013, Chaparral had estimated working capital (unaudited) of C$59.7 million (including cash and equivalents of C$49.0 million).

Cautionary Statements:

Some of the statements contained in this release are "forward-looking statements" within the meaning of Canadian securities law requirements, including statements relating to the development of the Gemfield project. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks relating to permitting, including delays, and risks of obtaining required financing. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE: Chaparral Gold Corp

In North America:
Scott Brunsdon or Nick Appleyard
Tel: [phone] or
Tel: [phone]

Robert Thaemlitz
Renmark Financial Communications
Tel: [phone]

In Europe:
Oliver Holzer
Marketing Consultant
Tel: [phone]

Or email the Company at:  [email protected]
Web Site:  www.chaparralgold.com