Soledad Project Highlights:

• Five additional exploration drill holes completed on Bx 7 with significant intercepts
• Marker breccia tested with three shallow drill holes
• Resource definition drilling completed on six breccia pipes; assays from 51 drill holes pending
• Gradient-array and offset induced-polarization (IP) surveys identify new targets, define prospective corridors, detect mineralized breccia pipes, and refine the ranking of 110 existing targets identified to date; property-wide surveys ongoing

Vancouver, B.C., October 12, 2021 – Chakana Copper Corp. (TSX-V: PERU; OTCQB: CHKKF; FRA: 1ZX) (the “Company” or “Chakana”), is pleased to provide results from five additional exploration holes drilled in Bx 7 (totaling 792.75m) at the Soledad project, Ancash, Peru (see table below). The exploration drilling is part of a fully funded 26,000m exploration and resource drilling program planned for 2021 (Fig. 1).

“The long-mineralized intercept in hole SDH21-212 at Bx 7 is important in understanding the geometry and potential of this breccia pipe. Bx7 has stronger precious metal grades than copper at the depths drilled so far. Bx 7 is an excellent exploration target that requires additional drilling to constrain its shape and depth extents before initiating resource definition drilling. Beyond this, we have 51 resource definition drill holes from Bx 5 and Huancarama to report leading up to the initial resource estimate which is expected by the end of the year. We have paused our drill program to complete the geophysical surveys that are in progress. Results from these geophysical surveys have been transformational in our understanding of the structural framework that controls the breccia pipe locations, including numerous responses interpreted to be additional concealed breccia pipes that do not crop out at surface. We are fully permitted to test a multitude of targets on the north half of the project, and are well advanced in permitting the southern half, where numerous outcropping mineralized breccia pipes occur,” stated President and CEO David Kelley.

Exploration Drill Results

Bx 7 (Exploration)

* 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).

Exploration Drilling

The holes reported in this release are a smaller number of exploration holes testing two targets, Bx 7 and the Marker breccia.  The purpose of the exploration holes is to test to see if additional resource definition drilling is warranted. Exploration drilling at Bx 7 has encountered a breccia pipe from surface to a depth of 220m that is open at depth (Figs. 2B and 3).  Drill hole SDH21-212 intersected mineralization along this entire extent. Three higher grade intervals were encountered at depth with increasing gold grades, high silver grades, and moderate copper grades. The overall geometry of Bx 7 remains to be defined with additional exploration drilling.

Three shallow drill holes were completed in the Marker breccia, located 200m south-southwest of Paloma West (Fig. 2A) where a small breccia is exposed at surface. All three holes intersected tourmaline breccia with apparent thicknesses ranging from 19.90m to 42.40m but no significant grades were encountered. One additional hole was attempted at Paloma West, but the hole was lost in a fault before the target depth was reached (Fig. 2A). This drill rig then returned to Bx 5 to complete additional resource drilling.

Geophysical Surveys

Two different types of geophysical surveys have been tested to identify new breccia pipe targets and help refine the ranking of the existing 110 targets identified to date. Orientation surveys based on gradient-array induced-polarization (IP) and offset IP were completed over several known and well understood mineralized breccia pipes to determine the optimal survey configuration for breccia pipe targets; both techniques are highly effective in delineating mineralized breccia pipes. Surveys are now being completed throughout the 12-km2 footprint of the Soledad mineral system where tourmaline breccias are known.  These surveys will help detect zones of mineralization, define the structural controls on fertile corridors that host the breccia pipes, locate new breccia pipes that may not come to surface, and refine the existing targets defined by several other overlapping exploration data sets.

Gradient-array IP is a rapid geophysical mapping technique designed to detect structure, alteration (resistivity) and sulfide mineralization (IP) as well as structural corridors. Previous historical IP surveys at Soledad were limited to smaller areas of the overall mineral system and were done using a variety of contractors, instruments, and line spacings. This new property-wide survey is optimized for vertical breccia pipe targets using a small footprint configuration. Results from orientation surveys at Soledad show distinct corridors that host the known breccia pipes (Fig. 4). Extensions of these corridors and newly identified corridors are considered highly prospective for the discovery of additional breccia pipes throughout the 12-km2 area of the Soledad mineral system.

Offset IP/Resistivity, another form of 3D tomographic IP/Resistivity surveying, is a follow-up technique used to determine the depth and geometry of potentially mineralized breccia pipes and is used for drill targeting. The offset IP surveys are designed to image singular and nested mineralized breccia pipes in the 100-400m depth range depending on dipole spacing and topography. An example from Huancarama shows a very prominent response in the metal factor (conductive chargeable zones) directly over the known breccia pipe as defined by drilling (Fig 5).

Barrick Agreement Extension

An amendment agreement has been completed with Minera Barrick Peru S.A. (Barrick) regarding the three concessions owned by Barrick that make up a large portion of the southern half of the Soledad project. The concessions were part of an original Option and Mining Assignment Agreement dated July 11, 2018 (see news release dated July 16, 2018). Under the amendment, Chakana must obtain the Authorization to Initiate Activities (AIA) for exploration drilling on or before September 27, 2023 (First Option). Chakana then has 4 years from the date of the AIA to complete a minimum of 4,000m of drilling and a 43-101 compliant Preliminary Economic Assessment (Second Option). Barrick will have a one-time right to re-acquire the property with a 70% interest. If Barrick declines, an undivided 100% interest in the concessions will be transferred to Chakana.

“Based on our preliminary review of these concessions, we are excited about the additional opportunities for potential resource expansion on this southern half of the Soledad project,” stated David Kelley, President and CEO of Chakana Copper.

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 copper-gold-silver mineralization hosted in tourmaline breccia pipes. A total of 60,854 metres in 261 diamond core holes for exploration and resource definition drilling have been completed since 2017, testing 16 of 110 total exploration targets, 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 base and precious. 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 outcropping breccia pipes and occurrences within the northern Soledad cluster. Pipes that have initial resource drilling completed shown in green. Breccia pipes shown in yellow have had exploration drilling completed. 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 – Maps showing drill holes reported in this release, and modeled breccia pipes (light red shapes) based on all drill holes. Light gray contours are at 25m intervals. Blue rectangles in the inset map show the area of the two plan maps within the overall Chakana property.

Figure 3 – 3D sectional view of Bx 7 looking northwest. Light red 3D shape shows breccia pipe geometry based on all drill holes. Previous holes drilled shown in grey.

Figure 4 – Gradient-array IP map for the north-central Soledad project area showing metal factor - a scaled ratio of the measured IP and resistivity responses. Warm colors depict areas where the rocks are conductive and chargeable. Long linear trends are interpreted to be structures and are considered highly prospective for hosting mineralized breccia pipes.

Figure 5 – Isometric view of offset IP/Resistivity inversion model results showing metal factor - a scaled ratio of the measured IP and resistivity responses. Warm colors depict areas where the rocks are conductive and chargeable. Note correlation between strong metal factor response (red) and the Huancarama breccia pipe confirmed in drilling.