Chesstown Capital Inc.

October 18, 2010 08:49 ET

Chesstown Capital Inc. (TSX VENTURE:CHC.H) Announces the Termination of Its Agreement in Principle

BURLINGTON, ONTARIO--(Marketwire - Oct. 18, 2010) - On March 8, 2010, Chesstown Capital Inc. (TSX VENTURE:CHC.H)("Chesstown") announced that it entered into an Agreement in Principle with Canadian Star Minerals Limited ("CSML") pursuant to which Chesstown would, subject to a number of conditions, acquire certain assets of CSML (the "Transaction"). Chesstown is a Capital Pool Company under the policies of the TSX Venture Exchange ("TSXV") and it was intended that the Transaction, if completed, would constitute Chesstown's Qualifying Transaction under TSXV policies.

The Agreement in Principle, after two extensions, expired on October 15, 2010, and Chesstown hereby announces that it has chosen not to further extend the Agreement in Principle. As a result, Chesstown will not proceed with the Transaction, and the sale of Chesstown shares referred to in Chesstown's press release of February 8, 2010 will not proceed.

Chesstown continues to examine opportunities that could qualify as its Qualifying Transaction and enhance shareholder value.

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.

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 of this release. 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.

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