PERU.V · 2019-04-02 12:00:00

News release

Corporate Updates

CHAK

Vancouve

CHKKF;

results fro

six drill h

and 227.7

g/t Ag fr o

reported (

Bx 6 is lo

highest e l

seventeen

cluster, al

adjacent t

been drille

Five of t h

Bx 6 (Fig

separate, l

were loca

The prosp

platforms

“These re

pipe drille

grades w h

upper brec

distributio

intense s u

breccia is

dominated

from 718 .

David Ke

and 5.

KANA INTE

227.7 g/t SI

er, B.C., A

; F W B : 1 ZX

om Breccia P

oles intersec

7 g/t Ag from

om 86m in

see news rel

cated 500 m

levation out

n confirmed

long with t w

o breccia pip

ed to date.

he six drill h

s. 2 and 3) w

lower brecci

ated on the n

pective north

will help to

esults are an

ed on the p r

hile still m a

ccia is still o

on. Minerali

ulfide repla c

open at de p

d by chalco p

.0 to 772.0 m

lley. Examp

ERSECTS 2

ILVER (5.37

April 2, 20

X) (the “Co

Pipe 6 (Bx 6

cted significa

m 64m in ho

hole SDH 1

lease dated F

metres north o

cropping b r

breccia pipe

welve other d

pes in previo

holes reporte

within the up

ia body enco

north central

hern margin

determine th

outstanding

operty to d a

aintaining i m

open and ne

zation in th e

cement of t o

pth and late

pyrite. With

m with 0.27

ples of miner

NEWS

9 METRES

7 g/t Au_EQ

19 – Cha k

ompany” or

6) at the So

ant mineraliz

le SDH18-1

18-107. Th

February 7, 2

of Bx 5 and

reccia pipe i

es on the So

distinctive ta

ous drilling

ed here wer e

pper breccia

ountered in d

l part of th e

of the pipe r

he grade and

g continuatio

ate with per v

mpressive g o

eds about 2,

e lower bre c

ourmaline b r

rally. In pl a

in the lower

g/t Au, 1. 3

ralized brecc

S RELEASE

S WITH 1.2

Q, 3.52% Cu

kana Copp

r “Chakana

ledad coppe

zation, inclu

03 and 14.0

e initial ei g

2019 at www

1 km northw

identified t o

ledad projec

argets that a r

(Fig. 1). Fou

e designed t o

a, while the s

drilling by a

e breccia pi p

remains und

d the overall

on of the dril

vasive miner

old and cop p

,500m of dri

ccia is impr e

reccia, simi l

aces the rep l

r breccia mi

34% Cu, an d

cias from ho

24 g/t GOLD

u_EQ) AT B

er Corp. (

a”), is pleas e

er-gold-silve

uding 29.0m

0m with 3.83

gh t d r i l l h o l

w.sedar.com

west of Bx 1

o date in th e

ct, twelve o f

re consisten

ur of the sev

o explore t h

sixth hole w

a previous co

pe and orie n

drilled. Subs

l geometry a

lling at Bx 6

ralization. T

per grades.

illing to con

essive in th a

lar to what

lacement inc

ineralization

d 14.1 g/t A

les in this re

D, 0.76% CO

BRECCIA

(TSX-V: P E

ed to releas

er project in

m with 1.24 g

3 g/t Au, 1.9

e s i n B x 6

m).

1 and is the n

e Soledad c

f which occ u

nt with alter a

venteen conf

he uppermos

as designed

ompany in 2

nted southea

sequent drilli

and plunge o

6, the third to

These results

The northe r

nfirm the geo

at it occurs

we have s e

cludes semi-

n over 54.0 m

Ag,” said Pr e

elease are sh

OPPER, AN

PIPE 6

ERU; OT C

e additiona l

central Peru

g/t Au, 0.76%

92% Cu, and

were previ

northernmos

cluster. The r

ur in the So

ation encoun

firmed pipes

st 400m ext e

to test a pos

2016. Drill co

ast and sout h

ing from ste

f the breccia

ourmaline br

s have high s

rn margin o

ometry and g

within a zo

ee n i n B x 1

-massive sul

m was inter s

esident and

hown in Figu

CQB:

l drill

u. All

% Cu,

d 12.9

ously

st and

re are

ledad

ntered

have

ent of

ssibly

ollars

herly.

ep out

reccia

silver

of the

grade

ne of

. The

lfides

sected

CEO

ures 4

- 2 -

Mineralized intervals from Breccia Pipe 6 include:

Bx 6 - Exploration Holes

DDH #

Az Dip

From - To

(m)

Core Length

(m)

g/t

Cu-

Au-

g/t*

Note

SDH18-103 139.7 -69.8 4.00 100.00 96.00 0.64 76.0 0.24 1.32 2.01

including 64.00 93.00 29.00 1.24 227.7 0.76 3.52 5.37

SDH18-104 143.4 -77.9 10.00 132.00 122.00 0.71 78.9 0.19 1.34 2.04

including 61.80 91.00 29.20 1.26 198.3 0.66 3.18 4.86

SDH18-106 149.6 -80.2 9.00 93 84 0.54 92.3 0.14 1.28 1.95

and 106.00 158 52 0.62 17.6 0.07 0.62 0.95

SDH18-107 159.7 -82.4 10 100 90 0.88 84.7 0.32 1.62 2.47

including 86 100 14 3.83 12.9 1.92 4.54 6.93

and 124 171.1 47.1 0.65 21.1 0.08 0.69 1.06

including 124 136 12 1.07 64.9 0.17 1.42 2.17

SDH18-108 164.6 -84.3 10 118 108 0.49 38.4 0.09 0.74 1.12

including 102.75 118 15.25 2.04 137.7 0.52 3.04 4.63

and 139.00 141.00 2.00 0.60 85.9 0.23 1.36 2.08

and 150 158 8 0.48 231.6 2.44 4.74 7.23

and 176 189.1 13.1 2.91 129.2 0.37 3.38 5.16

and 210 213.6 3.6 0.34 35.2 0.40 0.92 1.41

and 264 327 63 0.56 5.5 0.19 0.61 0.93

and 509.50 524.00 14.50 0.97 17.0 0.40 1.18 1.80 Mineralized Structure

and 718 772 54 0.27 14.1 1.34 1.64 2.50 Lower Breccia

and 785.00 785.70 0.70 0.30 10.3 8.15 8.43 12.90 Mineralized Structure

and 810.70 812.50 1.80 0.03 70.6 0.76 1.38 2.12 Mineralized Structure

and 884 887.15 3.15 0.18 143.3 3.49 4.83 7.38 Lower Breccia

SDH18-110 182.4 -86.6 11 31 20 0.79 72.6 0.05 1.19 1.82

and 128 152 24 0.48 25.5 0.13 0.66 1.01

and 165 169 4 0.37 14.8 0.05 0.41 0.63

and 230 233 3 0.50 16.9 0.35 0.82 1.25

and 239 257.85 18.85 1.10 20.6 0.37 1.27 1.94

and 270 273 3 11.53 33.8 1.47 9.32 14.22

and 283 301 18 2.48 1.0 0.03 1.67 2.54

and 374.8 376.4 1.6 3.10 4.7 0.01 2.08 3.17

* 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.

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. Sample batches include certified refere nce 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 are analyzed using the OG-4 6 procedure. Soil samples are

analyzed by 4-acid (ME-MS61) and for gold by Fire Assay on a 30g sample (Au-ICP21).

Chakana has completed 25,211m of drilling to date in 94 drill h oles and has a 20,000m drill

program planned for 2019 that will commence upon approval of a more expansive drill permit

that includes 120 drill platforms. The permit is in the final s tages of review by the Ministry of

Energy and Mines. Results of previous drilling and additional information concerning the

- 3 -

Project, including a technical report prepared in accordance wi th National 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 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 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, perfor mance, 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 ot her things, the interpretation of the nature of the

mineralization at the Soledad copper-gold-silver project (the “Project”), the potential to expand the

mineralization, and to develop and grow a resource wi thin the Project, the planning for further exploration

work, the ability to de-risk the potential exploration targets, and our belief in the potential

for mineralization within unexplored parts of the Pr oject. These forward-looking statements are based on

management’s current expectations and beliefs but gi ven 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 – V

View looking n

north showing b

breccia pipes a

- 4 -

and occurrence

es within the So

oledad cluster.

Figure 2 – A

release.

Surface ex

upper

A) view lookin

xpression of

breccia

Lower br

g west at drill

eccia

set up for Bx 6

- 5 -

6; B) map show

wing drill holes

s with geology

y discussed in th

Mineralized Structure

his

Figure 3 – S

3D shape is

Drill hole tr

includes dat

Section looking

s based on Leap

races show tou

ta from 75m in

g west showing

pfrog model o

urmaline brecci

n front of sectio

g the modeled b

f breccia from

ia (red), andes

on. Red arrow

- 6 -

breccia pipe at

the 6 holes in

itic tuff (green

s indicate open

t Bx 6 highligh

n this release pl

n) and porphyr

n direction of to

hting holes in th

lus SDH-014 d

ritic andesite (b

ourmaline brec

his release. Lig

drilled by Casa

blue/purple). S

ccia.

ght red

apalca.

Section

Fig

0.8

67.

inte

gure 4 – Minera

DH18-103 – mix

u, 0.91% Cu, an

0 g/t Au, 1.20%

0m assays 1.17

erval 91.0-96.0

atrix; the interv

ense sulfide rep

alized intercep

xed chaotic shi

nd 439.5 g/t Ag

% Cu, and 470

7 g/t Au, 0.63%

0m assays 2.62

al 179.0-185.0

placement; the

ts from drill ho

ingle and mosa

g; B) SDH18-1

0.8 g/t Ag; C) S

% Cu, and 467.

2 g/t Au, 2.81%

0m assays 4.93

e interval 718.0

oles reported in

aic breccia with

104 –mosaic br

SDH18-106 – c

.0 g/t Ag; D) S

% Cu, and 722.6

g/t Au, 0.26%

0-723.0m assay

- 7 -

n this release sh

h tourmaline-s

reccia with tou

contact betwee

SDH18-107 – m

6 g/t Ag; E) SD

% Cu, and 168.3

ys 0.43 g/t Au,

howing differe

sulfide matrix;

urmaline-sulfid

en wallrock and

mosaic breccia

DH18-108 – sh

3 g/t Ag; F) SD

3.69% Cu, and

ent styles of mi

the interval 87

e matrix; the in

d mosaic brecc

with tourmalin

hingle breccia w

DH18-108 – tou

d 16.5 g/t Ag.

ineralization in

7.0-92.0m assa

nterval 66.0-71

cia; the interval

ne-sulfide matr

with tourmalin

urmaline brecc

n Bx 6: A)

ays 1.49 g/t

1.0m assays

l 62.1-

rix; the

ne-sulfide

cia with

tou

fil

gure 5 – Detai

halcopyrite-sph

atrix; C) SDH1

urmaline brecc

ith semi-massiv

lling matrix of

led core photo

halerite-domina

18-108, 111.1m

cia with chalco

ve chalcopyrite

tourmaline bre

s from drill ho

ant sulfide matr

m, mosaic brec

opyrite-chalcoc

e replacement;

eccia.

les discussed in

rix; B) SDH18

ccia with quartz

cite replacemen

F) SDH18-11

- 8 -

n this release;

8-104, 75.4m, m

z-tourmaline-ch

nt of lithic frag

0, 270.45m co

A) SDH18-10

mosaic breccia

halcopyrite-py

gments; E) SDH

oarse-grained c

3, 70.9m, shing

a with pyrite-ch

yrite matrix; D)

H18-108, 785.2

centimetre-scal

gle breccia wit

halcopyrite-gal

) SDH18-108,

2m, tourmaline

e chalcopyrite

lena-siderite

720.7m,

e breccia

crystals

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