Vancouver, B.C., December 3, 2020 – Chakana Copper Corp. (TSX-V: PERU; OTCQB: CHKKF; FRA: 1ZX) (the “Company” or “Chakana”), is pleased to release new drill results from four holes at its high-grade copper-gold-silver Paloma West discovery at the expanded Soledad Project in Ancash, Peru. These results are part of the ongoing Phase 3 drill program, a fully funded 15,000 metre drill program that started August 15, 2020. Phase 3 is testing a cluster of high-grade, gold-enriched tourmaline breccia pipe targets within the Paloma and Huancarama breccia complexes (Fig. 1). Sixteen holes have now been reported from the two Paloma targets for a total of 3,080 metres. Drilling is currently underway at Huancarama where ten holes have been completed thus far.

Mineralized intervals from these four holes at Paloma West 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).

Summary information for results reported in this release; all holes were drilled from a platform on the southwest side of the exposed breccia pipe:

• SDH20-145 – an additional intercept further down hole is reported with 8.1m of 0.28 g/t Au, 4.06% Cu, and 53.8 g/t Ag starting at 59.9m. This interval corresponds to a sulfide-tourmaline replacement structure with abundant chalcopyrite. The mineralized breccia intercept of 7.25 g/t Au, 10.2% Cu, and 163.5 g/t Ag over 10.7m from 32.4m was previously reported (see news release dated November 18, 2020).
• SDH20-146 was drilled to determine the direction of the high-grade intercept in SDH20-145. This hole failed to intercept breccia on the west side of the breccia body.
• SDH20-147 and SDH20-148 were drilled to the northeast and east-northeast, respectively (Figs. 2-3). SDH20-147 intersected two zones of high-grade breccia, with the first zone averaging 5.76 g/t Au, 2.98% Cu, and 252 g/t Ag over 12.2m starting at 21.6m.  The second zone averages 4.00 g/t Au, 1.99% Cu, and 37.2 g/t Ag over 5m starting at 50m. SDH20-148 intersected 34.7m of 0.28 g/t Au, 0.72% Cu, and 13.9 g/t Ag from 19.3m, including 6.7m with 0.44 g/t Au, 1.94% Cu, and 48.7 g/t Ag starting at 19.3m. Further down in SDH20-148 an intercept of 11.25m averages 0.36 g/t Au, 0.56% Cu, and 15.7 g/t Ag from 65m.

Examples of mineralized drill core from these holes are shown in Figure 4.

David Kelley, President and CEO commented, “these additional results confirm the consistent high-grade nature of mineralization at Paloma West. Drilling thus far has encountered a near-surface, high-grade zone of breccia that appears to be cylindrical in shape with an approximate diameter of 35m down to 100m depth below surface. Mineralization is open at depth and we look forward to chasing the mineralization deeper. Paloma West appears to be associated with a much larger breccia system that also includes Paloma East and several other targets in the Paloma area.”

Paloma Target Area
The Paloma target area consists of two mapped outcropping breccia pipes, Paloma East and Paloma West (Fig. 2) and at least one breccia dike. First-pass surface sampling encountered strongly anomalous gold at both Paloma breccia pipes as well as within several scattered small exposures of breccia and vein-like structures in the Paloma area.

About Chakana Copper
Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the high-grade gold-copper-silver Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of high-grade gold-copper-silver mineralization hosted in tourmaline breccia pipes. A total of 33,353 metres of drilling has been completed to-date, testing nine (9) of twenty-three (23) confirmed breccia pipes with more than 92 total targets.  Chakana’s investors are uniquely positioned as the Soledad Project provides exposure to several metals including copper, gold, and silver. For more information on the Soledad project, please visit the website at www.chakanacopper.com.

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 samples that 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 by AA24.  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:
Joanne Jobin, Investor Relations Officer
Phone: 647 964 0292
Email: jjobin@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 northern Soledad cluster. Pipes that have been drilled in previous campaigns are shown in red. Targets shown in green are the focus on this 15,000m drill campaign. Other pipes and occurrences remain to be tested by drilling. Additional breccia pipes occur on the south half of the property and are not shown here.  

Figure 2 – Map showing location of outcropping Paloma East and Paloma West breccia pipes and drill hole lithology in holes completed to date. Red represents tourmaline breccia.  Location of section line for Figure 3 indicated.

Figure 3 – Section looking northwest showing the drill holes at Paloma West reported in this release. Light red 3D shape shows approximate shape of breccia based on the first nine holes.

Figure 4 – Detailed core photos from Paloma West: SDH20-145 (64.1m) chalcopyrite-pyrite-tourmaline replacement; SDH20-147 (31.9m)  chaotic breccia with clasts replaced by chalcopyrite-pyrite; SDH20-147 (33.25m) chaotic breccia with clasts replaced by chalcopyrite-pyrite; SDH20-148 (20.1m) mosaic breccia with chalcopyrite-pyrite cement; F) SDH20-148 (66.7m) mosaic breccia with chalcopyrite-pyrite cement.