Vancouver, B.C., September 10, 2019 – Chakana Copper Corp. (TSX-V: PERU; OTCQB: CHKKF; FRA: 1ZX) (the “Company” or “Chakana”), is pleased to announce that drilling has encountered an unexpected tabular body of mineralized breccia in close proximity to Breccia Pipe 5 (Bx 5). The body is very well mineralized, open and has important exploration implications to all the targets at Soledad. These results are part of Chakana’s fully funded 20,000m Phase 3 drill program at the Soledad copper-gold-silver project in central Peru.

Bx 5 East Target

There are twenty-three confirmed outcropping breccia pipes identified to date on the property (Fig. 1). Previous drilling at Bx 5 had outlined a mineralized, east-plunging breccia pipe to a depth of approximately 300m (see news release dated February 22, 2018, November 13, 2018, and January 10, 2019). Bx 5 is situated at the intersection of east and north-northeast trending structures. Two holes were drilled to test immediately east and down-plunge of the known breccia pipe from a step-out platform located 135m south-southeast from previous drilling at Bx 5 (Figs. 2 and 3). Both holes intersected long sections of mineralized breccia in a body that extends east and north of the known breccia pipe. These two holes returned 144m with 0.88 g/t Au, 0.88% Cu, and 13.6 g/t Ag in SDH19-126, and 172m with 0.29 g/t Au, 0.93% Cu, and 8.4 g/t Ag in SDH19-127. Important margin zone mineralization was also encountered in each hole, where grades are significantly higher. Assays are pending from a third hole (SDH19-128) that was drilled into the zone from a platform to the north (Fig. 3). Additional drilling is planned to follow this high-grade zone to depth.

“This is a significant development in the understanding of mineralization around Bx 5. The orientation of the breccia zone plunges to the north and is open at depth. While previous drill results on Bx 5 were favorable, this new zone has higher grades and has mineralized margin zones, something we have not seen since drilling at Bx 1. It may indicate that this new zone is a separate blind breccia pipe that intersects the breccia pipe that crops out at surface. Alternatively, we could be seeing zoning to higher grade copper with depth” said President and CEO David Kelley. “These results indicate the importance of continued drilling once a favorable structure has been discovered. Breccia pipe mineralization at Soledad is zoned both vertically and horizontally, blind pipes exist, and high-grade domains are important” added Kelley. Examples of mineralized breccias from holes in this release are shown in Figures 4 and 5.

Mineralized intervals from Bx 5 East include: ​​​​​​

* Cu_eq and Au_eq values were calculated using copper, gold, and silver. Metal prices utilized for the calculations are Cu – US$2.90/lb, Au – US$1,300/oz, and Ag – US$17/oz. No adjustments were made for recovery as the project is an early stage exploration project and metallurgical data to allow for estimation of recoveries are not yet available. The formulas utilized to calculate equivalent values are Cu_eq (%) = Cu% + (Au g/t * 0.6556) + (Ag g/t * 0.00857) and Au_eq (g/t) = Au g/t + (Cu% * 1.5296) + (Ag g/t * 0.01307).

Reported mineralized intervals are not true widths given the vertical nature of the breccia pipe and the steep inclination of the holes.

Bx 6 In-Fill Drilling

Additional drilling was completed on Bx 6 to further delineate the geometry of the breccia and to investigate the grade distribution. Two holes were drilled near the surface outcrop of the breccia to intersect the north margin, and four holes were drilled from a step-out platform approximately 110m to the south to further define the north margin of the upper breccia at depth (Fig. 6 and 7). “These holes successfully demonstrated that the north margin of the breccia pipe is expanding at depth, which is consistent with our understanding of how these breccia pipes form” stated Kelley.

Mineralized intervals from Bx 6 include:

* Cu_eq and Au_eq values were calculated using copper, gold, and silver. Metal prices utilized for the calculations are Cu – US$2.90/lb, Au – US$1,300/oz, and Ag – US$17/oz. No adjustments were made for recovery as the project is an early stage exploration project and metallurgical data to allow for estimation of recoveries are not yet available. The formulas utilized to calculate equivalent values are Cu_eq (%) = Cu% + (Au g/t * 0.6556) + (Ag g/t * 0.00857) and Au_eq (g/t) = Au g/t + (Cu% * 1.5296) + (Ag g/t * 0.01307).

Target Testing

Four drill holes were completed in the Bx 3W target in the north central part of the property (Fig. 1). Significant breccia was encountered with quartz-tourmaline-pyrite but without significant grades. Another hole was drilled to the southeast in order to test a geophysical anomaly, encountering sericite-pyrite-altered intrusive rocks without significant grades. The relation of these altered intrusive rocks to the breccia mineralization is unknown at this time.

About the Phase 3 Drill Program

The Phase 3 drill program is planned for 20,000m to test a variety of targets on the expanded property and to complete additional definition drilling. Approximately 4,300m of drilling has been completed since the start of the Phase 3 program. Based on extensive surface exploration work completed since Phase 2 drilling, a total of 92 targets have been defined and ranked. Targets are categorized as 1) outcropping breccia (n=45), 2) inferred breccia based on breccia float, geochemistry or geophysics (n=39); and 3) non-breccia or intrusive-hosted mineralization and polymetallic vein occurrences (n=8). Of these targets, 23 are tourmaline breccia pipes, and 12 others are areas possessing the alteration characteristic of the halo proximal to known breccia pipes. The strategy is to drill approximately 750m into each target in accordance with permitting and ranking criteria to further determine if closer-spaced drilling is justified.

Sampling and Analytical Procedures

Chakana follows rigorous sampling and analytical protocols that meet or exceed industry standards. Core samples are stored in a secured area until transport in batches to the ALS facility in Callao, Lima, Peru. Sample batches include certified reference materials, blank, and duplicate samplesthat are then processed under the control of ALS.All samples are analyzed using the ME-MS41 (ICP technique that provides a comprehensive multi-element overview of the rock geochemistry), while gold is analyzed by AA24 and GRA22 when values exceed 10 g/t. Over limit silver, copper, lead and zinc are analyzed using the OG-46 procedure. Soil samples are analyzed by 4-acid (ME-MS61) and for gold by Fire Assay on a 30g sample (Au-ICP21).

Results of previous drilling and additional information concerning the Project, including a technical report prepared in accordance with National Instrument 43-101, are made available on Chakana’s SEDAR profile at www.sedar.com.

Qualified Person

David Kelley, an officer and a director of Chakana, and a Qualified Person as defined by NI 43-101, reviewed and approved the technical information in this news release.

ON BEHALF OF THE BOARD

(signed) “David Kelley”
David Kelley
President and CEO

For further information contact:

Michelle Borromeo, Manager – Corporate Communications
Phone: 604-715-6845
Email: mborromeo@chakanacopper.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statement Advisory: This release may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Chakana to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relates to, among other things, the interpretation of the nature of the mineralization at the Soledad copper-gold-silver project (the “Project”), the potential to expand the mineralization, and to develop and grow a resource within the Project, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our belief in the potential for mineralization within unexplored parts of the Project. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward- looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.

Figure 1 – View looking north showing breccia pipes and occurrences within the Soledad cluster. Pipes that have been drilled are shown in red. Additional breccia pipes not shown occur in the Compañero cluster on the south half of the property.

Figure 2 – A) View looking east at drill set up for SDH19-112 on Bx 5; B) Map showing drill holes with geology discussed in this release. Black line shows approximate surface expression of breccia based on outcrop and float mapping. Dashed line shows general footprint of Bx5 East zone from recent drilling.

Figure 3 – Section looking west showing the modeled breccia pipe at Bx 5 highlighting holes in this release. Light red 3D shape is based on Leapfrog model of breccia from all holes drilled to date. Drill hole traces show tourmaline breccia (red), andesitic tuff (green and light blue), volcanic conglomerate (yellow) and undifferentiated andesite (dark green). Section includes data from 75m in front of section. Red arrows indicate open direction of tourmaline breccia from this perspective.

Figure 4 – Mineralized intercepts from drill holes reported in this release showing different styles of mineralization in Bx 5 East zone: A) SDH19-126 – mixed mosaic and chaotic shingle breccia with chalcopyrite-pyrite cement; the interval 257.0-263.0m assays 8.41g/t Au, 1.68%Cu, and 68.6 g/t Ag; B) SDH19-126 – mosaic breccia with strong tourmaline replacement and chalcopyrite-dominant cement; the interval 345.0-350.0m assays 0.59 g/t Au, 1.99% Cu, and 19.9 g/t Ag; C) SDH19-127 – chaotic shingle breccia with tourmaline-chalcopyrite-pyrite cement; the interval 323.0-328.0m assays 1.24 g/t Au, 1.90% Cu, and 22.2 g/t Ag; D) SDH19-127 – mosaic breccia with chalcopyrite cement; the interval 468.77-474.0m assays 1.25 g/t Au, 2.31% Cu, and 43.2 g/t Ag; E) SDH19-120 – mosaic breccia; the interval 72.0-77.0m assays 0.81 g/t Au, 0.78 Cu, and 600.4 g/t Ag; F) SDH19-122 – chaotic shingle breccia with larger clasts and lithic tuff wall rock; the interval 237.0-243.0m assays 7.52 g/t Au, 1.67% Cu, and 61.9 g/t Ag.

Figure 5 – Detailed core photos from drill holes discussed in this release; A) SDH19-126 Bx5 East, 245.0m, shingle breccia with chalcopyrite dement; B) SDH19-126 Bx5 East, 356.15m, vuggy tourmaline breccia with coarsely crystalline chalcopyrite and siderite; C) SDH19-127 Bx5 East, 417.65m, mosaic breccia with tourmaline-replaced clasts and chalcopyrite matric; D) SDH19-127 Bx5 East, 478.1m, mosaic breccia with chalcopyrite-replaced clasts and chalcopyrite cement; E) SDH19-120 Bx6, 89.75m, mosaic breccia with tourmaline-chalcopyrite-pyrite-sphalerite cement; curvilinear fragments may represent decompressive shock textures; F) SDH19-122 Bx6, 236.95m, contact between lithic tuff wall rock with sheeted veining and tourmaline breccia.

Figure 6 – A) View looking southwest at drill set up for step-out drilling at Bx 6; B) Map showing drill holes with geology discussed in this release. Black line shows approximate surface expression of breccia based on outcrop mapping.

Figure 7 – Section looking west showing the modeled upper breccia pipe at Bx 6 highlighting holes in this release. Lower breccia is not shown in this depth range. Light red 3D shape is based on Leapfrog model of breccia from all holes drilled to date. Drill hole traces show tourmaline breccia (red), andesitic tuff (green) and porphyritic andesite (dark green). Section includes data from 75m in front of section. Red arrows indicate open direction of tourmaline breccia from this perspective.