PERU.V · 2018-01-31 12:00:00

Chakana Intersects 69 Metres from Surface with 3.15 G/T Au, 0.39% Cu and 11.3 G/T AG at Its Soledad Project, PERU Including 22 Metres with 3.89 G/T Au, 1.18% Cu, and 21.3 G/T AG from 47 Metres

Drill Results

CHAKANA COPPER CORP.

NEWS RELEASE

CHAKANA INTERSECTS 69 METRES FROM SURFACE WITH 3.15 g/t Au, 0.39% Cu

AND 11.3 g/t Ag AT ITS SOLEDAD PROJECT, PERU

INCLUDING 22 METRES WITH 3.89 g/t Au, 1.18% Cu, AND 21.3 g/t Ag FROM 47

METRES

Vancouver, B.C., January 31, 2018 – Chakana Copper Corp. (TSX-V: PERU) (the

“ Company ” or “ Chakana ”), is pleased to announce the following assay resu lts from five

additional diamond drill holes drilled to date by t he Company at its Soledad copper-gold-silver

project in central Peru, optioned from Condor Resou rces Inc. This drilling campaign was

initiated August 16, 2017, with the results of the first five drill holes announced on October 6,

2017 and October 25, 2017. The program is ongoing for a total of 8,595m drilled to date of an

original program of 16,660 m.

All assays released to date (include those set out below) have been from drilling on Breccia Pipe

#1 (Bx #1) where historic drilling had documented c ontinuous mineralization from surface to a

depth of 490 m’s until the hole exited the side of the breccia pipe (please refer to Condor

Resources news release of July 6, 2016). Drilling b y Chakana has been from a central platform

on top of Bx #1 with different azimuth and dip angl es to define the geometry of the pipe and the

grade profile within the pipe and at the contact with the wall rock.

DDH # Azimuth Dip From - To

(m)

Core

length (m)

g/t

Cu-eq

Au-eq

g/t*

SDH17-022 98 -80 0.0 21.0 21.0 4.87 32.9 5.30

and 43.0 76.0 33.0 5.31 66.1 0.39 4.43 6.77

including 65.0 76.0 11.0 4.03 160.8 0.95 4.96 7.59

and 99 107.0 8.0 1.13 35.0 1.83 2.87 4.39

SDH17-023 325 -42 0.0 36.0 36.0 2.39 8.8 2.51

including 19.0 23.0 4.0 3.62 35.7 1.84 4.51 6.90

and 119.0 127.4 8.4 9.73 128.0 0.12 0.67 1.24 7.58 11.59

SDH17-024 325 -62 0 69.0 69.0 3.15 11.3 0.39 2.55 3.89

including 47.0 69.0 22.0 3.89 21.3 1.18 3.91 5.97

and 73.0 84.0 11.0 0.98 2.82 1.02

SDH17-025 350 -50 0.0 30.0 30.0 3.50 8.0 3.60

and 48.0 53.0 5.0 10.05 22.1 0.74 7.50 11.47

and 131.0 144.0 13.0 3.57 892.5 2.41 1.09 0.58 12.37 18.93

SDH17-026 190 -50 0 5.0 5.0 3.85 23.9 4.16

* 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). Assays for zinc and lead are not used in the metal equivalent calculations. The true widths of the

mineralized intervals reported in this release are difficult to ascertain and additional drilling will be required to constrain the

geometry of the mineralized zones.

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The Soledad project is located 35 km south of the P ierina mine in the prolific Miocene

metallogenic belt of Peru. The project hosts multip le high-grade quartz-tourmaline-sulfide

breccia pipes that crop out at surface. The purpose of this initial drilling campaign is to define an

inferred resource on 2 of the 9 known pipes, with a dditional drilling dedicated to other pipes and

targets on the project.

David Kelley, President and CEO of Chakana commented, “These 5 holes provide additional

information on the geometry of Bx #1 and confirm th e high grades previously reported. Hole

SDH17-022 was drilled to the east-southeast at -80 and intersects 3 breccia intervals along the

margin of the pipe. Copper is leached in the top 21 metres but it increases with depth in the

primary zone, with the lower 8 metre interval avera ging 1.83% Cu, 1.13 g/t Au and 35 g/t Ag.

Holes SDH17-023 to SDH17-026 are shallower holes be tween -42 to -62 degrees drilled to the

northwest and south. These shallower angled holes a re important to locate the margin of the

pipe and test the grade. Hole SDH17-023 intersects 36 metres of breccia from surface and also a

mineralized structure from 119.0m to 127.4m (8.4m) that averages 9.73 g/t Au, 128 g/t Ag,

0.12% Cu, 0.67% Zn and 1.24% Pb. Hole SDH17-024 has a continuous 69m breccia intercept

from surface, with copper leached in the top 47 met res, followed by primary mineralization from

47m to 69m (22.0m) that averages 3.89 g/t Au, 21.3 g/t Ag and 1.18% Cu. An example of the

breccia mineralization from this interval is shown in Figure 1. Hole SDH7-025 intersected

mineralized breccia in the top part of the hole in two intervals from 0-30m and 48-53m and a

very high grade breccia zone from 131-144m (13.0m) that averages 3.57 g/t Au, 892.5 g/t Ag,

2.41% Cu, 1.09% Zn, and 0.58% Pb. Hole SDH17-026 in tersected 5 metres of mineralized

breccia before exiting the pipe on the south margin”.

Sampling and Analytical Procedures

Chakana follows rigorous sampling and analytical pr otocols that meet or exceed industry

standards. All core drilled to date has been HQ dia meter with down-hole surveying using a

Reflex tool. Drill core is photographed, logged and sampled at the project site. Core is split in

half using a diamond saw with half of the interval used for assay and the other half for permanent

archive. Sample intervals are 1 metre in mineralize d breccia and 2 metres in unmineralized host

rock unless there is an important contact between t hese intervals. Samples for assay are placed in

individual plastic bags with a unique sample identi fication, sealed with a plastic zip tie, and

stored in a secured area until transport in batches 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 du plicates samples. All samples are analyzed

using the ME-MS41 procedure in order to obtain a comprehensive multi-element overview of the

geochemistry. Gold is analyzed by ME-MS41 (not cons idered reliable), AA24 (higher precision)

and GRA22 when values exceed 10 g/t. Over limit si lver, copper, lead and zinc is analyzed

using the OG-46 procedures.

Additional information concerning the Soledad Proje ct is available in a technical report prepared

in accordance with National Instrument 43-101 made available on Chakana’s SEDAR profile at

www.sedar.com.

Qualified Person

Technical information in this news release has been approved by David Kelley, Qualified

Professional - Geology designation from the Mining and Metallurgical Society of America, the

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President, CEO and a Director of Chakana and a Qual ified Person as defined by NI 43-101 –

Standards of Disclosure for Mineral Projects . Mr. Kelley has verified the sampling and

analytical procedures and has reviewed the assay da ta set out in this News Release during

continued visits to the Soledad project; inspection of the drill core at site prior to shipment to the

assay laboratory; and as the direct recipient of th e corresponding assay results from the assay

laboratory.

ON BEHALF OF THE BOARD

(signed) “ David Kelley ”

David Kelley

President and CEO

For further information contact:

Kevin Ma, Chief Financial Officer and Corporate Secretary

Phone: 604-687-7130

Email: [email protected]

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

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

This release may contain forward-looking statements . Forward-looking statements involve known and unkn own

risks, uncertainties, and other factors which may c ause the actual results, performance, or achievemen ts of Chakana

to be materially different from any future results, performance, or achievements expressed or implied by the

forward-looking statements. Forward looking stateme nts or information relates to, among other things, the

interpretation of the nature of the mineralization at the project, the potential to grow the project, the potential to

expand the mineralization, the planning for further exploration work, the ability to de-risk the poten tial exploration

targets, and our belief about the unexplored parts of the project. These forward-looking statements ar e based on

management’s current expectations and beliefs but g iven the uncertainties, assumptions and risks, read ers are

cautioned not to place undue reliance on such forwa rd- 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.

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