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PERU.V ·

Chakana Copper Initiates Phase 2 Drill Program at Soledad Drilling Begins ON Breccia Pipes 3 and 6

Exploration Programs

CHA

Vancouve

CHKKF;

approval fr

drill permi

relocate tw

Chakana. C

Soledad P r

agreements

The Comp

allow an a

stages of

modified t

other brecc

submitted t

from Barri

Breccia Pi

Breccia pip

breccia pip

and west z

values from

surface di a

textures f r

including c

Soledad P

Chakana b

potential o

have been

pipe adjace

been comp

mineralizat

drilling at B

1.18 g/t Au

Cu, 1.68 g/

dated June

AKANA CO

D

er, B.C., A

; FWB: 1ZX

fro m t he I ns ti

it at its Sole d

wo drill platf o

Construction

ro j e c t w a s op

s for an 100%

pany is await i

additional 160

approval wi t

o further ex p

cia pipes an d

to allow drill

ck (see news

ipes 3 and 6

pes 3 and 6 h

pes (Fig. 2; se

zone, with the

m surface com

ameter of ap p

rom both Bx

classic shingle

hase 1 Drillin

egan a Phase

f several quar

drilled to-dat

ent to Bx 1 (s

pleted at Bx 1

tion is still op

Bx 5 are forth

u, and 64.9 g/

/t Au and 27.4

26 and Febru

OPPER INI

DRILLING

August 15,

X) (the “Com

ituto Geológ i

dad copper-g o

orms to brecc

of platforms

ptioned from

% interest in 3

ing approval

0 platforms t h

th INGEM M

pand drilling

d targets. A s e

ling breccia p

release dated

have strong s

ee news releas

e principal bre

mposite rock

proximately 2

3 and Bx 6

e breccia (Fig

ng Update

1, 16,000m d

rtz-tourmaline

te in 68 holes.

ee news relea

down to appr

pen at depth in

hcoming. Hig

/t Ag (2.38%

4 g/t Ag (1.84

uary 22, 2018

NEWS

ITIATES PH

BEGINS O

2018 – C

mpany” or “

ico Minero y

old-silver pro

cia pipes 3 E

is complete, a

Condor Re s

,086 hectares

of its Semi- d

hroughout the

MET and is a

on the Palo m

eparate perm

pipes in the C

d July 16, 201

surface geoch

ses dated May

eccia in the e

chip and ch a

25m and gol d

6 a r e s i m i l a r

g. 3).

drill program

e-sulfide brec

. The drill pro

ase dated June

roximately 45

n Bx 1 and B

ghlights from

Cu_eq or 3.6

4% Cu_eq or

8 at www.seda

S RELEASE

HASE 2 DR

ON BRECCI

hakana C o

“Chakana”)

Metalúrgico

oject in centr a

East (Bx 3E) a

and drilling h

ources Inc. a

s covering 14

detailed Envir

e original Co

anticipated s o

ma (East and

mit, Declaratio

ompañero clu

8 at www.sed

hemical respo

y 23 and July

east zone havi

annel samplin

d values up t

to the mine r

in August of

ccia pipes tha

ogram was ex

e 26, 2018 at

50m and at B

x 5. Final ass

Chakana dril

3 g/t Au_eq)

2.82 g/t Au_

ar.com).

E

RILL PROG

IA PIPES 3

opper Cor p

), is pleased t

(INGEMM E

al Peru (the “

and 6 (Bx 6)

has commenc

and subsequ e

known miner

ronmental Im

ndor option a

oon. Once a

West), Hua n

on of Enviro n

uster from the

dar.com).

onse in gold s

y 16, 2018). B

ing surface d

ng are up to 5

to 2.1 g/t A u

ralized b recc

f 2017 designe

at crop out at s

xpanded after

www.sedar.c

x 5 down to a

say results fro

ling to date in

from 46m in

_eq) from 12m

GRAM AT S

3 AND 6

p. (TSX-V :

to announce t

ET Perú) to m

“Soledad Pr

, both not pr e

ced with two d

ently has exp

ralized brecci

mpact Study (

area. This pe

approved, th e

ncarama Bre c

nmental Impa

e concessions

similar to th e

Breccia pipe 3

dimensions of

5.9 g/t Au. B r

u in previous

cias drilled a

ed to determin

surface. A tot

discovery of

com). Definiti

approximately

om Bx 1 and

nclude: 187.0

Bx 1, and 16

m in Bx 5 (see

SOLEDAD

: PERU; O

that it has re c

modify its e x

oject”) in or d

eviously drill

diamond rigs

panded with o

ia pipes (Fig.

(EIA-SD) tha

rmit is in th e

e E I A - S D w

ccia Comple x

act (DIA), is

s recently acq

e other miner a

consists of a

f 60m x 40m.

reccia pipe 6

sampling. B r

t B x 1 a n d

ne the econom

tal of 18,600m

f a blind brecc

ion drilling ha

y 400m;

from addition

0m of 1.05% C

64.0m of 0.51

e news release

OTC:

ceived

xisting

der to

led by

. The

option

1).

at will

e final

will be

x, and

being

quired

alized

an east

Gold

has a

reccia

Bx 5,

mic

m

cia

as

nal

Cu,

%

es

- 2 -

Soledad Phase 2 Drilling

The fully funded Phase 2 drill program of 20,000m will consist of exploration and de finition drilling on

additional mineralized breccia pipes and targets leading to a m aiden resource. The drilling will include Bx

3E, Bx 6, and subsequently the P aloma and Huancarama Breccia Co mplex pipes once the EIA-SD is

approved and modified to include concessions south of the original Condor concessions.

Sampling and Analytical Procedures

Chakana follows rigorous sampling and analytical protocols that meet industry standards. Analytical

results in this release are based on composite rock chip and ch annel samples over a 1 x 2m area. Samples

for assay are stored in a secur ed area until transport in batch es to the ALS facility in Callao, Lima, Peru.

Samples are processed under the control of ALS with the samples including certified reference materials, a

coarse and finely-crushed blank and duplicates samples. All sam ples are analyzed using the ME-MS41

procedure in order to obtain a c omprehensive multi-element over view of the geochemistry. Gold is

analyzed by ME-MS41 (not considered reliable), AA24 (higher pre cision) and GRA22 when values

exceed 10 g/t. Over limit silver, copper, lead and zinc is analyzed using the OG-46 procedures.

Additional information concerning the Project is available in a technical report prepared in accordance

with National Instrument 43-101 made available on Chakana’s SED AR profile at www.sedar.com and at

www.chakanacopper.com.

Qualified Person

David Kelley, an officer and a director of Chakana, and a Quali fied 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: [email protected]

Neither TSX Venture Exchange nor its Regulation Services Prov ider (as that term is defined in the policies of the

Exchange) accepts responsibility for the adequacy or accuracy of this release.

This release may contain forward-looking st atements. Forward-looking statements invo lve known and unknown risks, uncertainties, and other

factors which may cause the actual results, pe rformance, or achievements of Chakana to be materially different from any future results,

performance, or achievements expressed or implied by the forward- looking statements. Forward look ing statements or information relates to,

among other things, the interpretation of the nature of the mine ralization at the Project, the potential to grow the Project, t he potential to expand

the mineralization, the ability to de-risk the potential exploration targets, the ability to complete a maiden inferred resource on the Soledad Project

and our belief about the unexplored parts of the Project. These fo rward-looking statements are based on management’s current ex pectations and

beliefs but given the uncertainties, assumptions and risks, reade rs are cautioned not to place undue reliance on such forward- looking statements

or information. The Company disclaims any obligation to update, or to publicly announ ce, any such statements, events or develop ments except as

required by law.

Figure 1 –

breccia pipe

Map showing

es (red circles),

the entire 10 0

, and potential

0% Chakana-c

blind (subcrop

- 3 -

ontrolled land

pping to buried

position (blac

d) breccia pipes

ck outline), c o

s (red stars).

onfirmed miner

ralized

Figure 2 – M

samples col

of the samp

samples are

Maps showing

lected by Cond

ling and analyt

, by nature, sel

gold in surface

dor Resources

tical methods s

lective and are

e rock samples

and Mariana R

see www.chaka

unlikely to rep

- 4 -

s collected by C

Resources over

anacopper.com

present average

Chakana over (

r (B) Bx 6. For

m. Readers are

e grades on the

(A) Bx 3E and

r additional resu

e cautioned tha

e Project.

Bx 3W, and

ults and a discu

at surface rock

ussion

Figure 3 – I

and Bx 3W

extending d

sulfides, (C)

quartz-tourm

mages showin

(dashed circle

downslope from

) Bx 3E chaoti

maline breccia

g surface expre

s show areas o

m Bx 3W; (B) B

c shingle brecc

with abundant

essions and bre

of principal out

Bx 3E shingle

cia; and Bx 6 (

t iron oxides af

- 5 -

eccia textures i

tcrops and large

breccia showin

D) outcropping

fter sulfides, (F

in Bx 3 (A) Go

e displaced blo

ng dark tourma

g breccia pipe,

F) Bx 6 shingle

oogle Earth im

ocks), note larg

aline matrix an

, note person fo

e breccia in out

age showing B

ge debris field

nd iron oxides a

or scale, (E) Bx

tcrop.

Bx 3E

after

x 6