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PERU.V ·

News release

Corporate Updates

INTERS

COPPER

Vancouve

FWB: 1 Z

additional

optioned f

of the P i

successful

August 16

www.chak

sixty-three

which wi

expanded

breccia p i

(Main Zon

from a cen

“The drill

also demo

particularl

from surfa

253m that

Zone is a t

well beyo

a grade of

approxima

Ag (2.62%

from the N

confirms

exposed b

eleven (1

may repr e

confirmed

CHAKANA

ECTS ADD

R AND 1.18

AND

er, B.C., Ju

ZX) (the “C

l holes in Br

from Condo

erina mine

l continuati o

6, 2017, wi t

kanacopper.

e (63) holes

ll be suitab

due to the

ipe. Four o f

ne) and nine

ntral platform

l holes in t h

onstrating c o

ly interesting

ace, then pen

t we interpre

ttributed to h

nd the Main

f 2.41% Cu,

ately 30m be

% Cu_eq) fr

North Zone,

that we are

by weatherin

1) strongly a

esent surfa c

d pipes mapp

A COPPER

DITIONAL

g/t GOLD (

D 3.48 g/t G

une 26, 201 8

Company” o

reccia Pipe 1

r Resources

i n t h e p r ol

on of what

th the result s

com). This

drilled to da

le for futur

discovery o

f the holes

e holes were

m (Fig. 1).

he main zon e

ontinued hig

g as it has 2

netrates 74m

et as being p

hole 25 (se e

n Zone. That

3.57 g/t Au,

eneath this z

om 104.9m.

confirming

seeing the u

ng, and oth e

altered zone

ce expressi o

ped at surfac

NEWS

DISCOVE

HIGH-GRA

(2.38% Cu_

GOLD (3.75%

8 – Chakana

or “Chakan

1 (Bx 1) at i t

Inc. The So

lific Mioce n

has beco m

s of the firs t

Phase 1 dr i

ate out of an

e resource e

of a blin d br

reported he r

designed to

e were suc c

gh grades,”

233m of 0.85

m of 0.43% C

art of the No

e January 3 1

t hole hit 13m

, and 892.5 g

zone and retu

Hole 63 w a

the blind na

uppermost p

ers that may

es with she e

on of blind

ce (see May 2

S RELEASE

RS BLIND

ADE INTER

_EQ) AND

% Cu_EQ)

a Copper C

na”), is ple

ts Soledad c

oledad proje

ne metallog

me a definit i

t forty-one (

illing progra

n original pla

estimates. T

reccia body

re were de s

explore the

cessful in e x

said Presid e

5% Cu, 1.36

Cu, 0.43 g/t A

orth Zone (F

1, 2018 new

m of breccia

g/t Ag (12.37

urned 83.1m

as drilled ab

ature of the b

part of the b

not have b e

eted quartz-s

other blind

23, 2018 new

E

PIPE AT B

RVALS - 18

111 METRE

IN BRECC

Corp. (TSX-

ased to an n

opper-gold-

ct (the “Proj

genic belt o

ion drilling

(41) drill h o

am is ongoi n

anned progra

The original

immediately

signed to e x

blind brecci

xtending the

ent and CE O

6 g/t Au, an d

Au, and 47.5

Figs. 1 and 2

s release) w

a about 50m

7% Cu_eq).

m of 0.85% C

bove hole 25

breccia body

breccia pipe

een. Our m a

sericite-tourm

pipes. Thi s

ws release)”

BRECCIA P

87 METRE

ES WITH 1

CIA PIPE 1

-V: PERU;

nounce ass a

silver projec

ject”) is loca

f Peru. Th e

program t h

oles released

ng with a to t

am of 16,660

Phase 1 d r

y north of t h

xplore the m

ia body (Nor

mineralizat

O D av id K e

d 57.2 g/t A g

5 g/t Ag (1.1

). The disco

which we int

north of the

Hole 62 wa

Cu, 0.51 g/t A

5 without int

y. This is hig

s, some of w

apping to d a

maline veini

s i s i n a d di

”, states Kell

PIPE 1,

ES WITH 1.0

1.05% COP

OTC: CHK

ays from th i

ct in central

ated 35 km

ese results

hat was ini t

d previously

tal of 17,59 0

0m, the resu

rill progra m

he exposed

main brecci a

rth Zone) of

tion deeper w

lley. “Hole

g (2.24% Cu

12% Cu_eq)

very of the N

entionally d

e Main Zone

as designed t

Au, and 166

tersecting br

ghly relevant

which have

ate has ide n

ing that we

ition to the

ley.

05%

PPER

KKF;

irteen

Peru,

south

are a

tiated

(see:

0m in

ults of

m w a s

main

a p i p e

f Bx 1

while

59 is

u_eq)

from

North

drilled

e with

to test

6.8 g/t

reccia

t as it

been

ntified

think

nine

- 2 -

New mineralized intervals from Breccia Pipe 1 are:

Main Zone Targeted Holes

DDH #

Az Dip

From - To

(m)

Core

Length (m)

Au

g/t

Ag

g/t Cu %

Cu-

eq

%*

Au-

eq

g/t*

Note

SDH18-058 195 -85 0.00 18.00 18.00 4.71 25.1 5.04

and 43.70 175.00 131.30 1.85 62.0 1.44 3.19 4.87

SDH18-059 325 -82 0.00 233.00 233.00 1.36 57.2 0.85 2.24 3.42

including 0.00 46.00 46.00 2.11 26.1 2.45

including 46.00 233.00 187.00 1.18 64.9 1.05 2.38 3.63

and 253.00 327.00 74.00 0.43 47.5 0.43 1.12 1.71 North Zone

and 356.00 359.00 3.00 2.25 31.5 0.16 1.91 2.92

SDH18-060 240 -82 0.00 22.00 22.00 4.27 18.4 4.51

and 52.00 128.00 76.00 1.89 84.4 1.86 3.82 5.84

and 180.00 283.30 103.30 1.10 264.5 1.16 4.14 6.32

SDH18-061 274 -80 0.00 22.20 22.20 5.61 32.7 6.04

and 37.80 135.00 97.20 2.41 50.9 0.97 2.98 4.55

and 156.00 216.70 60.70 0.40 95.1 2.14 3.22 4.92

North Zone Targeted Holes

SDH18-062 355 -60 0.00 31.00 31.00 4.95 13.3 5.13

and 45.00 78.00 33.00 4.16 27.0 1.20 4.16 6.34

and 104.90 188.00 83.10 0.51 166.8 0.85 2.62 4.00 North Zone

SDH18-063 355 -40 0.00 49.00 49.00 2.55 8.8 2.67

SDH18-064 358 -70 0.00 31.00 31.00 5.19 13.9 5.37

and 41.00 92.00 51.00 3.79 33.3 1.05 3.83 5.84

and 195.00 213.00 18.00 0.18 118.1 0.99 2.12 3.24 North Zone

and 227.00 230.70 3.70 1.45 195.6 2.44 5.07 7.74

and 274.05 284.00 9.95 0.66 23.9 0.16 0.80 1.22

SDH18-065 348 -77 0.00 116.00 116.00 3.52 45.7 0.87 3.57 5.45

including 0.00 40.00 40.00 4.81 24.2 5.13

including 40.00 116.00 76.00 2.85 57.0 1.31 3.67 5.60

and 222.00 264.00 42.00 0.63 79.4 0.64 1.74 2.65 North Zone

and 292.60 397.00 104.40 1.16 35.9 0.87 1.94 2.96 North Zone

SDH18-066 338 -52 0.00 36.00 36.00 2.99 8.7 3.11

and 48.00 55.30 7.30 7.05 48.0 1.03 6.06 9.25

and 104.00 107.00 3.00 3.54 200.5 0.35 4.38 6.69

SDH18-067 339 -64 0.00 25.00 25.00 3.88 13.5 4.06

and 41.00 84.60 43.60 5.90 47.5 1.80 6.07 9.27

and 120.90 125.70 4.80 1.96 402.9 0.89 5.63 8.60

and 153.00 193.00 40.00 0.54 156.3 0.80 2.49 3.81 North Zone

SDH18-068 338 -77 0.00 127.00 127.00 3.70 62.9 0.92 3.89 5.94

including 0.00 39.00 39.00 6.17 31.1 6.57

including 39.00 127.00 88.00 2.61 77.1 1.32 3.69 5.64

and 172.80 180.60 7.80 0.17 29.2 0.41 0.77 1.18

and 197.00 202.00 5.00 0.21 147.1 0.91 2.30 3.52 North Zone

and 225.00 227.00 2.00 0.09 104.0 0.63 1.58 2.42 North Zone

and 246.00 260.00 14.00 0.30 51.3 0.67 1.31 2.00 North Zone

and 315.45 318.55 3.10 0.63 262.8 2.25 4.91 7.50

and 358.45 362.00 3.55 0.12 32.0 0.60 0.95 1.46

SDH18-069 003 -65 0.00 90.00 90.00 3.41 17.5 0.39 2.77 4.23

including 0.00 44.00 44.00 3.47 11.5 3.62

including 44.00 90.00 46.00 3.34 23.2 0.73 3.12 4.77

and 109.80 135.50 25.70 0.43 58.2 0.11 0.89 1.37

and 195.90 213.75 17.85 0.40 91.9 2.98 4.04 6.17 North Zone

and 264.30 276.20 11.90 0.37 49.0 0.42 1.08 1.65 North Zone

SDH18-070 002 -79 0.00 111.55 111.55 3.48 48.4 1.05 3.75 5.73

including 0.00 40.00 40.00 4.38 20.1 4.65

including 40.00 111.55 71.55 2.98 64.2 1.63 4.13 6.31

and 277.50 293.75 16.25 0.55 66.0 0.86 1.79 2.73 North Zone

* 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).

- 3 -

Reported mineralized intervals are not true widths given the vertical nature of the breccia pipe and

the steep inclination of the holes.

Sampling and Analytical Procedures

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

Samples for assay are 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 blan k and duplicates samples. All

samples are analyzed using the ME -MS41 procedure in order to ob tain a comprehensive multi-

element overview of the geochemistry. Gold is analyzed by ME-MS 41 (considered to be least

reliable), AA24 (higher precision) 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 Ch akana’s SEDAR profile at

www.sedar.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 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, performanc e, 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 Project, the potential to expand the mineralization, the planning for

further exploration work, the ability to de-risk the potential exploration targets, and our belief about the unexplored

parts of the Soledad 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 –

release. Lig

holes show

data from 50

Section looki n

ht red 3D shap

tourmaline bre

0m in front of

ng west show

pes based on L

eccia (red), and

and behind sec

OPEN

ing the Main

eapfrog model

desitic wall roc

ction.

OP

- 4 -

and North B r

l of breccia fro

ck (green), and

PEN

reccia bodies a

om all holes dri

d other host roc

at B x 1 h i g h li

illed by Chaka

cks (other colo

ighting holes i

ana. Highlighte

ors). Section in

in this

ed drill

ncludes

Figure 2 – M

in Bx 1: A)

2018 news r

cemented br

abundant ch

Mineralized int

SDH17-025 hi

release); B) SD

reccia with abu

halcopyrite and

tercepts from f

igh grade inter

DH18-058 high

undant chalcop

d reddish-brow

four holes discu

rcept now cons

h grade mineral

pyrite from the

n sphalerite.

- 5 -

ussed in this re

sidered the disc

lization from th

North Zone; D

elease showing

covery hole of

he Main Zone;

D) SDH18-064

g different style

the North Zon

; C) SDH18-05

4 high grade sh

es of mineraliza

ne (see January

59 dense tourm

hingle breccia w

ation

31,

maline-

with