Mr. David Kelley reports

CHAKANA ANNOUNCES EXTENSION OF PRIVATE PLACEMENT, GOLD FIELDS TO FOLLOW ITS PARTICIPATION RIGHTS

The TSX Venture Exchange has granted an extension to the closing time of Chakana Copper Corp.'s non-brokered private placement of up to 55 million units at a price of four cents per unit for gross proceeds of up to $2.2-million (see news releases dated Oct. 18, 2023, Oct. 19, 2023, and Nov. 6, 2023). The company has closed $821,659.84 of the private placement to date. The extended date for final acceptance of the private placement is now Jan. 12, 2024.

Each unit will consist of one common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional share at a price of six cents per share for a period of two years from closing of the private placement. The company may accelerate the expiry of the warrants in the event that for any 10 consecutive trading days the closing price of the shares is greater than nine cents.

Pursuant to an agreement between the company and Gold Fields Nazca Holdings Inc., a wholly owned indirect subsidiary of Gold Fields Ltd. (see news release dated April 19, 2019), Gold Fields exercised its participation right to purchase 8,555,643 units in the first tranche of the private placement for total proceeds of $342,225.75 and currently owns 19.9 per cent of the outstanding shares in the company. Gold Fields has informed the company that it intends to participate in the second tranche of the financing. In addition, directors and officers of the company purchased an aggregate of 3,185,852 units in the first tranche of the private placement for total proceeds of $127,434.09.

The company intends to use $2-million of the proceeds from the private placement for exploration drilling and development of the company's high-grade copper-gold-silver discovery at the Soledad project, located in the Ancash region of Peru, and for general working capital and administrative purposes. On June 28, 2023, the company received final approval to drill numerous targets on the southern half of the Soledad project (see news release dated July 5, 2023), including the Mega-Gold porphyry target, the La Joya high-sulphidation epithermal target and additional high-grade outcropping tourmaline breccia pipes. The remaining funds will be used for general working capital and administrative purposes, including salaries payable to non-arm's-length parties. There are no proposed payments to persons conducting investor relations activities.

The Soledad project is an emerging copper-gold-silver discovery in the active Aija-Ticapampa mining district. An initial inferred resource (MRE (mineral resource estimate) 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, 2022, and Feb. 23, 2022) contained within 4.8 million tonnes grading 0.72 gram per tonne (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 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 center at Soledad that are subject to continuing exploration.

Chakana may pay finders' fees on some portion of the gross proceeds of the private placement to certain arm's-length parties assisting the company in introducing subscribers to the private placement. The private placement is subject to all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The securities issued under the private placement will be subject to a hold period under applicable securities laws in Canada expiring four months and one day from the closing date of the private placement.

Members of the company's management team may participate in the private placement, including subscriptions from related parties of the company as defined in Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The participation of management in the private placement is exempt from formal valuation and minority shareholder approval requirements pursuant to exemptions contained in sections 5.5(c) and 5.7(1)(a) of MI 61-101.

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 and other intrusion-related styles of mineralization. An initial inferred resource estimate for seven breccia pipes was announced in January, 2022 (see news release dated Feb. 23, 2022), with 6.73 million tonnes containing 191,000 ounces of gold, 11.7 million ounces of silver and 130 million pounds of copper. In addition, 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 uniquely positioned as the Soledad project provides exposure to base and precious metals.

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.

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