PERU.V · 2019-09-10 12:00:00

Chakana Intersects 32 Metres with 2.99 G/T GOLD, 1. 52% Copper, and 33.0 G/T Silver (5.75 G/T Au_eq, 3.76% Cu_eq) Withi N 144 Metres with 0.88 G/T GOLD, 0.88% Copper, and 13.6 G/T Silver IN a New Di Scovery East of Breccia 5

Drill Results

NEWS RELEASE

CHAKANA INTERSECTS 32 METRES WITH 2.99 g/t GOLD, 1. 52% COPPER, AND

33.0 g/t SILVER (5.75 g/t Au_EQ, 3.76% Cu_EQ) WITHI N 144 METRES WITH 0.88 g/t

GOLD, 0.88% COPPER, AND 13.6 g/t SILVER IN A NEW DI SCOVERY EAST OF

BRECCIA 5

Vancouver, B.C., September 10, 2019 – Chakana Coppe r 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 a nd 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 brecci a 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 inte rsection 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-so utheast from previous drilling at Bx 5 (Figs.

2 and 3). Both holes intersected long sections of m ineralized breccia in a body that extends east

and north of the known breccia pipe. These two hole s 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 thi rd hole (SDH19-128) that was drilled into the

zone from a platform to the north (Fig. 3). Additio nal drilling is planned to follow this high-grade

zone to depth.

“This is a significant development in the understa nding of mineralization around Bx 5. The

orientation of the breccia zone plunges to the nort h and is open at depth. While previous drill

results on Bx 5 were favorable, this new zone has h igher 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 bre ccia pipe that crops out at surface. Alternatively,

we could be seeing zoning to higher grade copper wi th 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 Sol edad is zoned both vertically and horizontally,

blind pipes exist, and high-grade domains are impor tant ” added Kelley. Examples of mineralized

breccias from holes in this release are shown in Figures 4 and 5.

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Mineralized intervals from Bx 5 East include:

Bx 5E - Exploration Holes

DDH #

Az Dip From - To

(m)

Core

Length (m)

g/t

Cu-eq

Au-eq

g/t*

Note

SDH19-126 359.8 -65.1 238.00 382.00 144.00 0.88 13.6 0.88 1.5 7 2.40

including 238.00 270.00 32.00 2.99 33.0 1.52 3.76 5.75 Margin zone

including 293.00 327.00 34.00 0.52 9.1 0.71 1.13 1.72

including 340.00 382.00 42.00 0.21 13.8 1.27 1.53 2.33

SDH19-127 355.3 -65.9 310.80 483.00 172.20 0.29 8.4 0.93 1.19 1.82

including 310.80 360.00 49.20 0.59 13.5 1.05 1.55 2.37

including 377.00 413.00 36.00 0.15 4.4 1.26 1.40 2.13

including 453.00 483.00 30.00 0.45 19.5 1.82 2.28 3.49 Margin Zone

* Cu_eq and Au_eq values were calculated using copp er, 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 furthe r delineate the geometry of the breccia and

to investigate the grade distribution. Two holes we re drilled near the surface outcrop of the

breccia to intersect the north margin, and four hol es were drilled from a step-out platform

approximately 110m to the south to further define t he north margin of the upper breccia at depth

(Fig. 6 and 7). “These holes successfully demonstra ted 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:

Bx 6 – In-Fill Holes

DDH #

Az Dip From - To

(m)

Core Length

(m)

g/t

Cu-eq

Au-eq

g/t*

Note

SDH19-119 209.9 -69.8 Breccia not intercepted

SDH19-120 192.7 -73.3 67.00 137.70 70.70 0.64 109.5 0.61 1.96 3.01

including 67.00 93.00 26.00 0.95 260.8 0.61 3.46 5.29

SDH19-121 10.0 -44.7 107.85 145.20 37.35 0.53 27.3 0.16 0.74 1.13

SDH19-122 3.7 -68.3 238.00 255.00 17.00 3.37 22.4 0.59 2.98 4.57

SDH19-123 11.3 -58.1 138.30 163.00 24.70 0.72 30.2 0.21 0.94 1.44

and 175.00 209.00 34.00 0.50 28.8 0.19 0.76 1.17

SDH19-124 12.3 -72.7 258.00 289.00 31.00 0.72 3.1 0 .12 0.62 0.94

* Cu_eq and Au_eq values were calculated using copp er, 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 i n order to test a geophysical anomaly,

encountering sericite-pyrite-altered intrusive rock s without significant grades. The relation of

these altered intrusive rocks to the breccia mineralization is unknown at this time.

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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 dril ling. Approximately 4,300m of drilling has

been completed since the start of the Phase 3 progr am. Based on extensive surface exploration

work completed since Phase 2 drilling, a total of 9 2 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) no n-breccia or intrusive-hosted mineralization

and polymetallic vein occurrences (n=8). Of these t argets, 23 are tourmaline breccia pipes, and

12 others are areas possessing the alteration chara cteristic 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 pr otocols that meet or exceed industry

standards. Core samples are stored in a secured are a until transport in batches to the ALS facility

in Callao, Lima, Peru. Sample batches include cert ified reference materials, blank, and duplicate

samples that are then processed under the control o f ALS. All samples are analyzed using the

ME-MS41 (ICP technique that provides a comprehensiv e multi-element overview of the rock

geochemistry), while gold is analyzed by AA24 and G RA22 when values exceed 10 g/t. Over

limit silver, copper, lead and zinc are analyzed us ing 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 informa tion concerning the Project, including a

technical report prepared in accordance with Nation al 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 Communicatio ns

Phone: 604-715-6845

Email: [email protected]

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Neither TSX Venture Exchange nor its Regulation Ser vices Provider (as that term is defined in the policies of the

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

Forward-looking Statement Advisory: This release ma y contain forward-looking statements. Forward-looki ng

statements involve known and unknown risks, uncerta inties, and other factors which may cause the actua l results,

performance, or achievements of Chakana to be mater ially different from any future results, performanc e, or

achievements expressed or implied by the forward-lo oking statements. Forward looking statements or inf ormation

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 th e mineralization, and to develop and grow a resourc e

within the Project, the planning for further explor ation work, the ability to de-risk the potential ex ploration targets,

and our belief in the potential for mineralization within unexplored parts of the Project. These forwa rd-looking

statements are based on management’s current expect ations and beliefs but given the uncertainties, ass umptions and

risks, readers are cautioned not to place undue rel iance on such forward- looking statements or inform ation. The

Company disclaims any obligation to update, or to p ublicly announce, any such statements, events or de velopments

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 p ipes not shown occur in the Compañero cluster on th e south half of

the property.

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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 approxi mate surface expression of breccia based on outcrop and float

mapping. Dashed line shows general footprint of Bx5 East zone from recent drilling.

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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 undifferentia ted andesite (dark

green). Section includes data from 75m in front of section. Red arrows indicate open direction of tou rmaline breccia

from this perspective.

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Figure 4 – Mineralized intercepts from drill holes reported in this release showing different styles o f mineralization in Bx 5 East

zone: A) SDH19-126 – mixed mosaic and chaotic shing le breccia with chalcopyrite-pyrite cement; the int erval 257.0-263.0 m

assays 8.41g/t Au, 1.68%Cu, and 68.6 g/t Ag; B) SDH 19-126 – mosaic breccia with strong tourmaline replacement a nd

chalcopyrite-dominant cement; the interval 345.0-35 0.0m assays 0.59 g/t Au, 1.99% Cu, and 19.9 g/t Ag; C) SDH19-127 –

chaotic shingle breccia with tourmaline-chalcopyrit e-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 as says 1.25 g/t Au,

2.31% Cu, and 43.2 g/t Ag; E) SDH19-120 – mosaic br eccia; 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 lar ger 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.

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Figure 5 – Detailed core photos from drill holes di scussed 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 wit h coarsely crystalline chalcopyrite and

siderite; C) SDH19-127 Bx5 East, 417.65m, mosaic br eccia with tourmaline-replaced clasts and chalcopyr ite matric; D) SDH19 -

127 Bx5 East, 478.1m, mosaic breccia with chalcopyr ite-replaced clasts and chalcopyrite cement; E) SDH 19-120 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 betwee n lithic tuff wall rock with sheeted veining and tourmaline breccia.

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