Mr. David Kelley reports

CHAKANA ANNOUNCES CLOSING OF $3.0 M UPSIZED FINANCING WITH INVESTMENTS FROM GOLD FIELDS AND RICK RULE

Chakana Copper Corp. has completed the upsized final tranche of its non-brokered private placement. In connection with the closing of the second tranche, the company issued 54,459,356 units at a price of four cents per unit for gross proceeds of $2,178,374.25. Each unit consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles 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. When combined with the first tranche of the private placement (see news release dated Nov. 6, 2023), the company raised gross proceeds of $3,000,034 through the issuance of an aggregate total of 75,000,851 units.

David Kelley, president and chief executive officer, commented: "We are excited to see such strong support in this upsized financing to fund the next exploration phase at our Soledad project in Peru. We especially appreciate additional investments by Gold Fields and Rick Rule, after completing a thorough geological review of the project and its potential. The primary use of the proceeds will be to drill several untested targets on the south half of the project, including the Mega-Gold porphyry target defined by extensive anomalous gold-molybdenum in soil, pervasive phyllic and advanced argillic alteration, and strong induced polarization chargeability responses."

Pursuant to an agreement between the company and Gold Fields Nazca Holdings Inc., a wholly owned indirect subsidiary of Gold Fields Ltd., Gold Fields has exercised its participation right to purchase a total of 15,449,999 units of the private placement for total proceeds of $618,000. This placement takes Gold Fields from an equity position of 17.4 per cent to 18.4 per cent. In addition, directors and officers of the company purchased an aggregate of 3,585,852 units in the private placement for total proceeds of $143,434.09.

The company intends to use the net proceeds of the private placement for a minimum of 2,400 metres of exploration drilling and advancement of the company's high-grade copper-gold-silver discovery at the Soledad project, located in the Ancash region of Peru. 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. A small portion of the proceeds of the private placement 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.

Chakana paid aggregate finder's fees of $102,564 and issued 2,996,100 finder's warrants in connection with the final tranche of the private placement. Each finder's warrant is exercisable to purchase one share at a price of six cents per share for a period of two years from closing of the private placement, subject to acceleration.

All securities issued under the final tranche of the private placement are subject to a four-month hold period expiring on May 13, 2024, in accordance with applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws in jurisdictions outside of Canada. Final closing of the private placement is subject to all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

Members of the company's management team and insiders participated 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 and insiders 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

Mr. 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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