News release

CHAKA

HIGHLI

A

Vancouve

CHKKF;

additional

Peru. A p

Inc. whe r

began Au

also availa

the limits

with one h

from a cen

Drilling d

highlighti

SDH18-07

Cu_EQ; 3

breccia w

from sur f

211.1 g/t A

139.05m

beginning

further ex

of grade-t

blind No r

exploratio

mineral h

of mineral

ANA COPP

IGHT INTE

AND 50.5 g/

er, B.C., S e

; FWB: 1ZX

l core holes i

ortion of th e

re all drillin g

ugust 16, 20 1

able at www

of Bx 1, i n

hole also or

ntral platform

demonstrates

ng the verti c

71 cuts this

3.16 g/t Au _

with 207.45m

face, cuts p r

Ag (3.85% C

with 0.54 %

g at 300.75m

xtension. “Ho

thickness. Th

rt h Z o n e ( se

on potential o

ost rock to t

lized interva

PER CONF

ERSECTION

/t SILVER

eptember 1

X) (the “Com

into Breccia

e Soledad P r

g to date h a

17. Results o

w.chakanacop

ncluding the

ientated to t

m (Fig. 1).

s t h a t B x 1

cal extent t h

vertical ex t

_EQ). It is n

m at 0.88% C

re-mineral i n

Cu_EQ; 5.89

% Cu, 0.47

m. This hole

ole SDH18-

he vertical e

ee news re l

of the Soled

the tourmali

als from hole

NEWS

IRMS DEE

BREC

N OF 439 M

(2.07% Cu_

11, 2018 –

mpany” or “

Pipe 1 (Bx

roject is su b

as occurred.

of the previ o

pper.com. T

main brecc

test the dee p

extends f r

hese tourmal

tent, returni n

otable that t

Cu, 2.58 g/t A

ntrusive hos t

9 g/t Au_EQ

g/t Au, a n

deviated ou

071 is the b

xtent confirm

lease dated

dad project. I

ine breccia”

es in this rele

S RELEASE

EP SURFAC

CCIA PIPE

METRES W

_EQ, 3.16 g

Chakana C

Chakana”),

1) at its Sole

bject to an o

These res u

ous fifty-fou

he four hole

ia pipe (M a

p extension o

rom surface

line breccia

ng 0.69% C

this hole fir s

Au, and 53.0

t rock with

Q), then enter

nd 29.3 g/t

ut of the pipe

est hole eve

med in this h

June 26, 2 0

It is also not

states Davi

ease are show

E

CE-DOWN

1,

WITH 0.69%

g/t Au_EQ) F

Copper Co r

, is pleased t

edad copper

option agreem

ults follow fr

ur drill hole s

es reported h

ain Zone) to

of the blind

to 439m d

pipe targets

Cu, 1.45 g/t

st cuts a thi c

0 g/t Ag (3.

32.95m at

rs the blind N

Ag (1.10 %

e at 439m, le

er drilled on

hole, combin

018 at www

teworthy to s

d Kelley, P r

wn in Figure

MINERAL

% COPPER,

FROM SUR

rp. (TSX- V

to announce

-gold-silver

ment with C

fro m a P h a se

s have been

here were de

the northw

North Zone

depth and i s

s potentially

Au and 50 .

ck interval o

02 Cu_EQ;

1.37% Cu,

North Zone

% C u _ E Q ; 1

eaving miner

the property

ned with the

w.sedar.com

see minerali

resident and

e 2.

LIZATION A

, 1.45 g/t GO

RFACE

V: PERU; O

assays from

project in ce

Condor Reso

e 1 p r o g r am

released an

signed to ex

est and nor t

e breccia pi p

s o p e n a t d

y offer. Dril l

.5 g/t Ag ( 2

of the Main

4.62 g/t Au_

1.03 g/t A u

breccia retu

1.68 g/t Au _

ralization op

y to date in t

e discovery o

m), highligh t

ization in the

d CEO. Exa m

AT

OLD

OTC:

m four

entral

ources

m t h a t

nd are

xplore

theast

pe, all

depth,

l hole

2.07%

Zone

_EQ)

u, and

urning

_EQ)

pen to

terms

of the

ts the

e pre-

mples

- 2 -

New mineralized intervals from Breccia Pipe 1 are:

Bx #1 - Main and North 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

SDH18-071 312 -81 0.00 439.80 439.80 1.45 50.4 0.69 2.07 3.16 Main Zone

including 0.00 37.00 37.00 6.40 21.3 6.68 Main Zone

including 37.00 207.45 170.45 1.75 59.9 1.06 2.72 4.15 Main Zone

including 207.45 240.40 32.95 1.03 211.1 1.37 3.85 5.89 host rock

and 300.75 439.80 139.05 0.47 29.3 0.54 1.10 1.68 North Zone

SDH18-072 115 -82 0.00 136.00 136.00 0.97 44.0 0.73 1.74 2.66 Main Zone

including 0.00 60.00 60.00 0.85 12.8 1.02 Main Zone

including 60.00 136.00 76.00 1.06 68.7 1.28 2.56 3.92 Main Zone

SDH18-073 82 -70 0.00 40.00 40.00 1.69 20.5 1.96 Main Zone

and 149.00 151.80 2.80 0.71 77.0 1.72 Main Zone

SDH18-074 290 -80 0.00 112.00 112.00 3.99 62.1 4.80 Main Zone

and 138.00 203.00 65.00 0.78 166.7 2.13 4.07 6.22 Main Zone

including 187.00 203.00 16.00 1.17 202.6 2.63 5.13 7.84 margin 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).

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

the steep inclination of the holes.

The Phase 1 drilling program was increased to 18,863m in 70 hol es over and above an original

planned program of 16,660m. The o riginal Phase 1 drill program was expanded due to the

discovery of a blind breccia body immediately north of the expo sed main breccia pipe (North

Zone). A Phase 2 drill program began at Soledad, as announced A ugust 15, 2018, utilizing a

second core rig where drilling is currently in progress at Bx 3 E and Bx 6 ( see news release dated

August 15, 2018 at www.sedar.com). A total of 14 mineralized brecc ia pipes have been identified in

two clusters within an area of 3,085 hectares where Chakana has or can earn a 100% interest (see

news release dated July 16, 2018 at www.sedar.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 tran sport in batches to the ALS facility

in Callao, Lima, Peru. Samples batches include certified refer ence materials, blank and duplicate

samples that are then processed under the control of ALS. All s amples are analyzed using the

ME-MS41 (ICP technique that provides a comprehensive multi-elem ent overview of the rock

geochemistry), while gold is analyzed by AA24 and GRA22 when va lues exceed 10 g/t. Over

limit silver, copper, lead and zinc is analyzed using the OG-46 procedure.

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.

- 3 -

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 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 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 potential exploration targets, and our belief about the 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 – S

Light red 3

tourmaline b

50m in fron

Section looking

3D shapes ba s

breccia (red), a

nt of and behind

g west showing

sed on Leapfr o

andesitic wall

d section.

g the Main and

og model of b

rock (green), a

- 4 -

d North breccia

breccia from a

and other host

a bodies at Bx

all holes drill e

t rocks (other c

1 highlighting

ed by Chaka n

colors). Section

holes in this re

na. Drill holes

n includes data

elease.

s h o w

a from

Figure 2 – M

in Bx 1: A)

g/t Au, 3.20

the interval

from the No

breccia from

high-grade m

and 317.4 g

Mineralized int

SDH17-071 –

0% Cu, and 49.

234.5-45239.4

orth Zone; the i

m the Main Zon

margin zone m

/t Ag.

tercepts from f

classic high-g

0 g/t Ag; B) pr

45m assays 2.7

interval 310-31

ne; the interval

mineralization f

four holes discu

rade shingle br

re-mineral feld

70 g/t Au, 2.26%

15m assays 0.3

l 78-84m assay

from the Main

- 5 -

ussed in this re

reccia from the

dspar monzodio

% Cu, and 1,14

37 g/t Au, 1.18

ys 3.15 g/t Au,

Zone; the inter

elease showing

e Main Zone; t

orite porphyry

45.7 g/t Ag; C)

% Cu, and 93.

3.22% Cu, and

rval 192-197m

g different style

the interval 39-

with sulfide re

) SDH18-071 –

6 g/t Ag; D) SD

d 69.9 g/t Ag;

m assays 2.09 g/

es of mineraliza

-45m assays 16

eplacement tex

– mosaic brecc

DH18-072 – m

E) SDH18-074

/t Au, 3.38% C

ation

6.77

xtures;

cia

mosaic

4 –

Cu,