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Intersects 11m of 6.29 g/t Au and 92.8 g/t Ag (7.66 g/t Au-eq) 14m below surface

Vancouver, B.C., March 24, 2021 – Chakana Copper Corp. (TSX-V: PERU; OTCQB: CHKKF; FRA: 1ZX) (the “Company” or “Chakana”), is pleased to announce the discovery of a second high-grade breccia pipe within the Huancarama Breccia Complex at the Soledad Project in Ancash, Peru (Table 1, Fig. 1). This new high-grade breccia pipe (Huancarama West) is located approximately 75m west of the previously announced Huancarama East discovery (see news releases starting January 12, 2021). To date, a total of thirty-three HQ diamond core holes have been completed within the Huancarama Breccia Complex to delineate the boundaries of the breccia pipes.

David Kelley, President and CEO commented, “The discovery of a second high-grade tourmaline breccia pipe within the Huancarama Breccia Complex is an exciting development for the project. The drill rig was set up 50m north of the H5 breccia in an area with andesitic tuff exposed at surface. High-grade gold and silver mineralization was encountered about 3m below surface, demonstrating the significant potential of near-surface mineralization at Soledad. The precious metal-rich nature of the mineralization may be related to oxidation but also primary zonation. Often breccias at Soledad become strongly mineralized at depth with copper in addition to precious metals.”

Huancarama West New Discovery
Table 1. Mineralized intervals from the new discovery at Huancarama West include:

DDH #

From - To (m)

Core Length (m)

Au
g/t

Ag
g/t

Cu %

Cu-eq
%*

Au-eq g/t*

SDH21-170

No Significant Results

SDH21-171

3.00

45.00

42.00

0.84

26.8

0.03

 

1.24

including

33.00 

42.00 

9.00 

1.76 

108.0

0.09

 

3.31

and

54.00

57.00

3.00

0.79

7.14

0.01

 

0.90

SDH21-172

3.60 

59.00 

55.40 

1.64 

54.2

0.20

 

2.65

including

26.00

51.00

25.00

2.49

110.2

0.42

2.99

4.57

SDH21-173

4.00

111.00

107.00

0.46

17.7

0.06

 

0.78

SDH21-174

3.10

25.70

22.60

3.93

48.3

0.06

 

4.65

including

14.00

25.00

11.00

6.29

92.8

0.10

 

7.66

and

43.20

52.00

8.80

1.56

136.1

0.51

2.69

4.12

SDH21-175

2.75

15.80

13.05

5.47

45.5

0.03

 

6.11

* 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).

Six holes were drilled on the western side of the breccia complex to test for mineralization associated with the H4 and H5 breccias exposed at surface (Fig. 2). Holes SDH21-171 to SDH21-175 were drilled from a platform on the northwest side of the complex. No breccia is exposed at surface in this area, instead andesitic tuff with sericite alteration is exposed concealing the underlying breccia. All five holes intersected mineralized breccia starting at depths ranging from 2.75 to 4.0m depth below surface (Fig. 3). The breccia is partially oxidized to depths of 30m below surface. Significant mineralized intercepts were encountered, including 55.4m with 1.64 g/t Au and 54.2 g/t Ag (2.65 g/t Au-eq) starting at 3.6m, and 22.6m with 3.93 g/t Au and 48.3 g/t Ag (4.65 g/t Au-eq) starting at 3.1m below surface. Copper is low within the intervals reported due to oxidation and primary zoning within the breccia pipe. Examples of mineralized drill core from these holes are shown in Figure 5.

Huancarama East
Three additional drill holes from Huancarama East are also reported (Table 2). All three holes were designed to test the upper central part of the breccia pipe from the north side and drilled to the south-southeast (Fig. 2). The holes intersected volcanic host rock before entering mineralized tourmaline breccia (Figs. 2 and 4). Volcanic rock separates the H1 and H2 breccias that crop out at surface. Beneath the volcanic rock the two breccia bodies coalesce at depth, forming a larger breccia body with approximate dimensions of 100m x 65m and persisting to a depth of 290m below surface (see news release dated March 3, 2021). Holes SDH21-167 and SDH21-169 exited the breccia pipe on the south-southeast side. SDH21-168 was stopped prematurely in mineralized breccia at 105.1m depth due to proximity to open underground workings. The highest-grade interval occurs in SDH21-169 with 29.55m of 0.34 g/t Au, 0.80% Cu, and 87.3 g/t Ag (1.77% Cu-eq) starting at 84.45m down hole, including 7.55m with 0.98 g/t Au, 2.17% Cu, and 269.6 g/t Ag (5.12% Cu-eq). Examples of mineralized drill core from these holes are shown in Figure 5.

“These drill holes were successful in confirming the contact between the overlying volcanic host rock and the underlying mineralized breccia around the collapse zone. The breccia is closer to surface than previously thought with depths ranging from 20-28m below surface, adding additional volume to the breccia body. Infill drilling is currently underway at Paloma East and Huancarama East. We look forward to reporting additional exploration results from our fully-funded 26,000m drill program soon,” Kelley added.

Table 2. Mineralized intervals from three additional holes at Huancarama East include:

DDH #

From     -    To (m)

Core Length (m)

Au
g/t

Ag
g/t

Cu %

Cu-eq
%*

Au-eq g/t*

SDH21-167

71.45

137.80

66.35

0.20

24.7

0.39

0.73

1.12

SDH21-168

79.00

105.10

26.10

0.39

16.2

0.50

0.89

1.37

SDH21-169

84.45 

115.30 

30.85 

0.33 

84.4

.77

1.77

2.70

including

84.45 

92.00 

7.55 

0.98 

269.6

2.17

5.12

7.82

* 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).

Huancarama Target Area and the Current Drill Program
The Huancarama Breccia Complex is located 300m south of and 400m above the deepest breccia intercept at Paloma. Within the complex there are five principal breccia bodies exposed at surface over approximately 200m horizontally (Fig. 6). There is a distinctive feature believed to be a collapse zone with dimensions of 50m by 30m. Unverified reports suggest that this may be due to small-scale mining. Two historic adits are in the complex, one trending north-northeast for 170m along the western side of H1 (Fig. 2), and a second shorter adit of 21m at H2. Surface sampling from the breccia bodies and channel sampling of the adits yielded strongly anomalous gold results (see news release dated November 19, 2019). In addition to several targets within the complex, numerous additional targets exist in the Huancarama and Paloma area.

Results reported here are part of the recently expanded and fully funded 2021 drill program of 26,000m. Combined with the drilling in 2020 that started last August, a total of approximately 32,000m is anticipated through 2021. Of this, 8,094m have been reported in 43 drill holes for the Paloma and Huancarama areas. For the 26,000m of drilling planned in 2021, the Company will complete 16,000m of resource definition drilling, and 10,000m of exploration drilling testing new targets. This drill program will be integral to the publication of a maiden resource in 2021.

About Chakana Copper
Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the 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 42,728 metres of drilling has been completed to date, testing ten (10) of twenty-three (23) confirmed breccia pipes. The exploration team has identified 110 targets in total on the project, confirming that Soledad is a large, well-endowed mineral system with strong exploration upside. 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. Outcropping breccia pipes shown in green are the focus of the current 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 of the Huancarama Breccia Complex and drill hole lithology in holes completed to date. Red shapes projected to surface represents tourmaline breccia pipes based on all holes drilled to date and lithology mapped in the underground tunnel. Black dotted outlines show surface expression of mapped breccias (H1-H5); white dashed line shows collapse zone. Location of section lines for Figures 3 and 4 indicated.

Figure 3 – Section looking northeast highlighting the drill holes at Huancarama West discovery reported in this release. Light red 3D shape shows preliminary shape of breccia based on these five drill holes. The green surface trace represents andesitic tuff exposed at surface.

Figure 4 – Section looking northeast highlighting the drill holes at Huancarama East reported in this release. Light red 3D shape shows preliminary shape of breccia based on all drill holes to date and lithology mapped in the underground tunnel.

Figure 5 – Core photos from drill holes reported in this release: SDH21-167 (122.45m) mosaic tourmaline breccia with partial chalcopyrite-pyrite clast replacement; SDH21-169 (85.4m) tourmaline breccia with chalcopyrite-pyrite-covellite; SDH21-169 (89.1m) massive sulfide – chalcopyrite-pyrite; SDH21-171 (41.55m) strongly oxidized tourmaline breccia with remnant pyrite; SDH21-172 (13.2m) partially oxidized tourmaline mosaic breccia with pyrite. Core diameter is 6.35cm (HQ) in all instances.

Figure 6 – Drone image looking northeast at the Huancarama Breccia Complex showing the five principal tourmaline breccia bodies exposed at surface (H1-H5), historic adit portal, and drill platforms. Note the drill rig in center of image.

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