PNPN.V · 2017-04-03 12:00:00

Chilean Metals Expands Drilling Program at Zulema

Exploration Programs

Toronto, ON. April 3rd, 2017 . Chilean Metals Inc. (“Chilean Metals,” “CMX” or the

“Company”)(TSX.V:CMX, OTCQB: CMETF, SSE:CMX, MILA:CMX, FRA: IVV1, BER : IVV1).

Chilean Metals Inc is pleased to announce that it has expanded the drill program at Zulema from a minimum of

2,000 meters to an open ended ongoing program that will be a minimum of 3,000 meters. Zulema is Chilean’s lead

exploration project in Chile located near Copiapo and 30 Km's from Lundin Mining’s Candelaria mine.

With Candelaria as a model, the exploratory drill program is testing two geologically distinct targets: a 1+ square

km. area of intense garnet scapolite skarn breccia (Skarn Targ et) and a large Induced Polarization chargeability

anomaly on its eastern flank. (IP Target).

The initial results released on Feb 27 th suggested to Chilean that it had found in our assessment, IOCG style

mineralization. Subsequent drilling continues to test this thesis. To date we have reported highlights on our initial 2

and a partial third hole. Today we provide a map outlining the current seven holes we have drilled with completed

assays where applicable. Holes 2, 3, 5 assays are reported in detail below.

Drill holes 1, 6 and 7 assisted in defining the boundaries of the eastern skarn and related sulphide mineralization.

Drill hole 4, targeting the I.P. target, was terminated before reaching bedrock. The target remains open.

Hole 3 had a six meter section from 285.32 – 291.32 meters which contained 0.66% Cu, 23.6% Fe and .52 grams of

gold/tonne. It also contained an additional intercept from 325.20 to 335.20 that assayed .34% Cu, 10 % Fe and .16

grams of gold/tonne.

Hole 5 located 272 meters north and east of 3 also had some interesting highlights. In particular, we see several

lenses of two and four meters in length with individual 2 meters sections assaying up to .43% Cu, 4,9 % Fe and .29

grams of gold/tonne. (see assays below for detail).

Initial drill results confirm that host rocks and alteration fit the Candelaria model. The presence of copper-bearing

magnetite skarn, interbedded magnetite chalcopyrite bands, more massive chalcopyrite in drill hole 5, biotite

magnetite alteration, potassic (K-spar), magnetite and hematite veining and local mineralized breccias suggests

proximity to the main mineralized target.

A review of the drill core has been completed with the results suggesting the focus of our ongoing exploration

should be towards the west near drill holes 2, 3 and 5 where the skarn appears a more receptive host for

mineralization. In drill hole 2, quartz stock-working and siliceous breccia sugg est proximity to a high temperature

heat source / intrusion. Directly east of drill hole 2 at drill-hole 5, widespread low grade copper mineralization is

accompanied by a more robust style of chal copyrite occurring as large 1 cm. clot s within the skarn. Due south of 5,

drill hole 3 contained large sections of skarn including several lenses of iron rich, IOCG style copper mineralization.

Additional drilling is planned to test this western expressi on and a broader more focused I.P. and magnetic program

will be initiated in conjunction with Minotaur Explora tion Australia advice prior to a planned second stage

exploration program.

“We are very encouraged by the ongoing exploration drilling program at Zulema. Holes 3 and 5 showed a lot of

promise and we found the elevated gold to copper ratios of .5 to 1:1 particularly interesting. Potential Industry

Partners were enthusiastic about our progress at PDAC and provided insightful commentary on our ongoing

program. Our team is continuing to follow our strategic work program and we look forward to demonstrating this

progress upon completion of this stage of exploration sometime in May ”, commented Patrick J Cruickshank,

President & CEO

Drill Hole From To

True

Width Cu (%)

(%)

(g/t)

(m.) (m.) (m.)

Hole 2 100.00 102.00 2.0 0.136 5.28 0.04

Hole 2 102.00 104.00 2.0 0.025 4.55 0.01

Hole 2 104.00 106.00 2.0 0.256 4.31 0.04

Hole 2 106.00 108.00 2.0 0.247 3.83 0.04

Hole 2 112.00 114.00 2.0 0.112 2.71 0.03

Hole 2 124.55 126.55 2.0 0.076 3.30 0.02

Hole 3 175.00 177.00 2.0 0.161 3.60 .010

Hole 3 285.32 287.32 2.0 1.189 26.71 0.99

Hole 3 287.32 289.32 2.0 0.503 37.55 0.28

Hole 3 289.32 291.32 2.0 0.283 6.58 0.29

Hole 3 291.32 293.32 2.0 0.12 6.69 0.05

Hole 3 315.20 317.20 2.0 0.145 2.96 0.03

Hole 3 317.20 319.20 2.0 0.259 4.57 0.16

Hole 3 321.20 323.20 2.0 0.016 4.43 0.01

Hole 3 323.20 325.20 2.0 0.093 6.40 0.04

Hole 3 325.20 327.20 2.0 0.678 5.69 0.28

Hole 3 327.20 329.20 2.0 0.577 11.06 0.21

Hole 3 329.20 331.20 2.0 0.205 11.00 0.1

Hole 3 331.20 333.20 2.0 0.075 17.28 0.05

Hole 3 333.20 335.20 2.0 0.15 5.15 0.15

Hole 5 122.20 124.20 2.0 0.281 6.91 0.25

Hole 5 148.00 150.00 2.0 0.109 6.74 0.08

Hole 5 150.00 152.00 2.0 0.126 3.84 0.35

Hole 5 179.85 181.85 2.0 0.432 4.92 0.29

Hole 5 181.85 183.85 2.0 0.334 10.47 0.24

Hole 5 183.85 185.85 2.0 0.127 2.7 0.06

Hole 5 185.85 187.85 2.0 0.036 3.28 0.04

Hole 5 187.85 189.85 2.0 0.084 10.34 0.05

Hole 5 207.85 209.85 2.0 0.016 5.02 0.03

Hole 5 209.85 211.85 2.0 0.019 4.37 0.02

Hole 5 211.85 213.85 2.0 0.034 4.44 0.01

Hole 5 213.85 215.85 2.0 0.145 4.38 0.07

Hole 5 217.85 219.85 2.0 0.441 4.27 0.27

Hole 5 229.25 231.35 2.1 0.451 5.34 0.26

All samples were secured and delivered to Activation La boratories Ltd. in Copiapo Chile for preparation and

analysis. All assay procedures were industry standard methods. Gold analysis was by fire assay. QA/QC procedures

by the company included the insertion of standards in the sample stream. Selected pulps were also re-submitted for

analysis.

About Chilean Metals

www.chileanmetals.com/

Chilean Metals Inc. is a Canadian Junior Exploration Company focusing on high potential Copper Gold prospects in

Chile & Canada.

Chilean Metals Inc is 100% owner of five properties comprising over 50,000 acres strategically located in the

prolific IOCG (“Iron oxide-copper-gold”) belt of northern Chile. It also owns a 3% NSR royalty interest on any

future production from the Copaquire Cu-Mo deposit, recently sold to a subsidiary of Teck Resources Inc. (“Teck”).

Under the terms of the sale agreement, Teck has the right to acquire one third of the 3% NSR for $3 million dollars

at any time. The Copaquire property borders Teck’s producing Quebrada Blanca copper mine in Chile’s First

Region.

Chilean Metals Inc is the 100% owner of four Copper Go ld exploration properties in Nova Scotia on the western

flank of the Cobequid-Chedabucto Fault Zone (CCFZ); Fox River, Parrsboro, Lynn and Bass River respectively.

Initial targeting and geophysics has been conducted on all properties, At Bass River North, airborne

geophysics identified a major VTEM cluster on trend with the Pb/Zn/Ag mineralization exposed at surface and in

drill holes to the southwest. Modeling of the airborne data by Minotaur Exploration (Australia) identified 3 priority

targets recommended for ground based geophysics prior to drilling.

ON BEHALF OF THE BOARD OF DIRECTORS OF

Chilean Metals Inc.

“Terry Lynch” “Patrick J Cruickshank”

Terry Lynch, Chairman Patrick J Cruickshank, President & CEO

Contact: [email protected] [email protected]

The Qualified Person for Chilean Metals Inc., as defined by National Instrument 43-101, is Gary Lohman, P. Geo.,

Vice President, Exploration.

Forward-looking Statements: This news release may contain certain statements that may be deemed "forward-looking statements". All statements

in this release, other than statements of historical fact, that address events or deve lopments that CMX expects to occur, are f orward looking

statements. Forward-looking statements are st atements that are not historical facts and are generally, but not always, identifi ed by the words

"expects", "plans", "anticipates", "believes", "intends", "estim ates", "projects", "potential" and similar expressions, or that events or conditions

"will", "would", "may", "could" or "should" o ccur. Forward-looking statements in this document include statements regarding cur rent and future

exploration programs, activities and results. Although CMX believes the expectations expressed in such forward-looking statements are based on

reasonable assumptions, such statements are not guarantees of fu ture performance and actual resu lts may differ materially from those in forward-

looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices,

exploitation and exploration succe ss, continued availability of capital and financ ing, inability to obtain required regulatory or governmental

approvals and general economic, market or business conditions. Investor s are cautioned that any such statements are not guarant ees of future

performance and actual results or developments may differ materially from those projected in the forward looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provid er (as that term is defined in the policies of the TSX Ventu re Exchange)

accepts responsibility for the adequacy or accuracy of this release

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