Mr. David Kelley reports

CHAKANA RECEIVES FINAL APPROVAL TO DRILL MEGA-GOLD, LA JOYA, AND OTHER HIGH-PRIORITY TARGETS - SOLEDAD PROJECT, PERU

On June 28, 2023, Chakana Copper Corp. received final approval to drill numerous targets defined in a portion of the southern half of Chakana's Soledad project, located in the Ancash province of Peru within the Miocene mineral belt.

Highlights include:

• Expanded drill permit approved;
• Drilling can now proceed on the southern half of the Soledad project;
• High-priority targets already defined and ready to drill;
• Two bulk-tonnage targets will be tested -- Mega-Gold intrusion-hosted copper-gold zone and the La Joya high-sulphidation epithermal gold-silver zone;
• High-grade, mineralized tourmaline breccia pipes will also be tested.

"We are pleased to announce that drilling can proceed in some of the most exciting targets ever defined on the Soledad project. Previous drilling on the north half of the Soledad project focused almost entirely on high-grade tourmaline breccia pipes, which makes up the initial resource and remains open at depth. While outcropping high-grade breccia targets like Estremadoyro and the Companero complex exist on the southern half of the project, the Mega-Gold intrusion-hosted copper-gold zone, and the La Joya high-sulphidation epithermal gold-silver zone represent large, potential bulk-tonnage targets not previously drill tested by Chakana. These differing styles of mineralization are interpreted as being part of the same zoned mineral system at Soledad," stated president and chief executive officer David Kelley.

The Soledad project is an emerging copper-gold-silver discovery in the active Aija-Ticapampa mining district. An initial inferred resource (MRE) of 191,000 ounces of gold, 11.7 million ounces of silver and 130 million pounds of copper hosted in tourmaline breccia pipes and open at depth was published in Q1 2022 (see news releases dated Jan. 11 and Feb. 23, 2022) contained within 4.8 million tonnes grading 0.72 gram per tonne gold, 61 g/t silver and 0.97 per cent copper assumed to be extractable by underground mining methods, plus an additional inferred resource of 1.9 million tonnes grading 1.29 g/t gold, 37.1 g/t silver and 0.65 per cent copper assumed to be extractable by open-pit mining methods. The currently defined resource reflects only a small portion of the potential of the Soledad mineral system as the tourmaline breccias are just one of several mineralization styles related to a major intrusive centre at Soledad that are subject to continuing exploration.

The environmental approval for the expanded permit covering the entire prospective southern half of the Soledad project was received on Dec. 27, 2022. The final step of the drill permit, referred to as initiation of activities, is divided into private surface land, covering the Mega-Gold, La Joya and Estremadoyro target areas (phase 3 -- approved June 28, 2023); and community-owned land, covering the Companero breccia complex (phase 4). Chakana has initiated the process of prior consultation for the community-owned land and expects to receive approval of phase 4 in Q4 2023 or Q1 2024, allowing drilling in the Companero breccia complex to occur shortly thereafter.

Drilling program

Three principal target areas will initially be tested with a planned 4,000 m drill program: 1) the Mega-Gold intrusion-related copper-gold target; 2) the La Joya high-sulphidation epithermal (HSE) gold-silver zone; and 3) the Estremadoyro tourmaline breccia pipe.

Mega-Gold target area

The Mega-Gold target is a very large area occupying 2.5 square kilometres with anomalous gold in soil overlying pervasive tourmaline-quartz-white mica alteration, overprinted by localized advanced argillic alteration zones and tourmaline breccias. The target area is oriented northeast and is underlain by older andesitic tuff (Calipuy formation) and a premineral granodiorite, thought to be the first pulse of intrusive activity in the Soledad mineral system. Within the anomaly is a distinct offset (3-D) induced polarization chargeability feature with a similar orientation as the soil anomaly. The chargeability feature is modelled to be a vertical intrusive or pipe-like body on the south side of the Lincuna fault with a subhorizontal feature extending up the hill to the southwest. Soil gold values over the vertical chargeability body reach up to 0.325 g/t. The vertical body is interpreted to be a blind intrusion cutting the earlier granodiorite. The planned drilling will test these features for gold mineralization and base metal sulphides.

La Joya high-sulphidation epithermal (HSE) target area

The La Joya target area is associated with high-sulphidation advanced argillic alteration consisting of vuggy silica, alunite, dickite, zunyite, diaspore and pyrophyllite. The zone of alteration extends 700 metres in a north-south direction at an elevation of approximately 4,500 metres. Surface rock samples collected from the alteration zone have silver and gold values up to 1,300 g/t and 0.36 g/t, respectively. An access road from off-property leads to five scattered drill pads on the southernmost 200-metre segment of La Joya, and locals report that Buenaventura completed seven short drill holes over 20 years ago, encountering silver mineralization and some gold. A qualified person is unable to confirm the Buenaventura history.

Estremadoyro tourmaline breccia pipe

The Estremadoyro breccia pipe is exposed along the road near the bottom of the valley and has artisanal workings where copper oxides are clearly visible. Rock samples from breccia exposures reported values up to 1.25 g/t gold, 0.57 per cent copper and 37.6 g/t silver. The mapped tourmaline breccia is coincident with a distinct conductivity and metal factor (function of chargeability and conductivity) response.

About Chakana Copper Corp.

Chakana Copper is a Canadian-based minerals exploration company that is currently advancing the Soledad project located in the Ancash region of Peru, a highly favourable mining jurisdiction with supportive communities. The Soledad project is notable for the high-grade copper-gold-silver mineralization that is hosted in tourmaline breccia pipes. An initial mineral resource estimate for seven breccia pipes was announced in Q1 2022 (see news release dated Feb. 23, 2022), with an inferred resource of 4.8 million tonnes grading 0.72 g/t gold, 61 g/t silver and 0.97 per cent copper assumed to be extractable by underground mining methods, plus an additional inferred resource of 1.9 million tonnes grading 1.29 g/t gold, 37.1 g/t silver and 0.65 per cent copper assumed to be extractable by open-pit mining methods. The total initial inferred resource contains 191,000 ounces of gold, 11.7 million ounces of silver and 130 million pounds of copper.

In addition, the company's extensive multidisciplinary exploration has defined 154 exploration targets, 28 of which have been tested to date (18 per cent), confirming that Soledad is a large, well-endowed mineral system with strong exploration upside. Chakana's investors are well positioned as the Soledad project provides exposure to copper and precious metals.

Results of an initial inferred mineral resource estimate and additional information concerning the project, including a technical report prepared in accordance with National Instrument 43-101, are available on Chakana's profile on SEDAR.

Qualified person

David Kelley, an officer, and a director of Chakana, and a qualified person as defined by National Instrument 43-101, reviewed and approved the technical information in this news release.

We seek Safe Harbor.