Mr. David Kelley reports

CHAKANA DRILLS PLUS-KILOGRAM SILVER AT LA JOYA AND IDENTIFIES DISCRETE PORPHYRY TARGETS AT MEGA-GOLD, SOLEDAD PROJECT, PERU

Chakana Copper Corp. has released final drill results from its 2024 drill program at the expanded Soledad project in Ancash, Peru. Favourable assay results were received for the La Joya prospect. Additional holes drilled at Mega-Gold returned similar elevated values to those previously reported within well-developed zoned alteration, confirming two discrete porphyry targets. The company's team has undertaken an in-house review of the results of all exploration activities completed to date and strongly recommends additional drilling at La Joya and Mega-Gold. All results reported here are located within concessions under option from Minera Barrick Peru SA.

"La Joya has great potential to become a significant precious metals discovery. We had limited metres to work with in the initial drill test, but it confirmed exceptional silver grades in near-surface, structurally controlled mineralization. The alteration trend at La Joya has a strike length of 700 metres and the stratigraphy at depth has the potential to host broader bulk-tonnage mineralization. At Mega-Gold, we confirmed zoned alteration and anomalous geochemistry consistent with a high-level porphyry environment. Importantly, integration of the drill results with geophysics and our current understanding of the geology highlights two intrusive centres on the margin of a large precursor intrusion with porphyry potential at depth. Additional drilling in these two key target areas is being planned," stated president and chief executive officer David Kelley.

La Joya drill results

Three shallow holes were completed at La Joya for a total of 465.5 metres (m). The holes were planned to drill beneath strongly silicified volcanic rocks where zones of vuggy silica alteration returned strongly anomalous values in silver and gold. The strongest mineralization was observed in hole LJDH24-002 with 323.6 grams per tonne (g/t) silver (Ag) and 0.25 g/t gold (Au) over 4.5 m from 58.0 m depth. Within this interval massive pyrite with subordinate galena and sphalerite is present over a 0.75-metre interval with 1,005.0 g/t Ag, 0.45 g/t Au and 0.42 per cent lead (Pb). The mineralized interval is hosted within andesite tuff that shows evidence of advanced argillic alteration. A second mineralized interval was encountered in hole LJDH24-003 with 20.5 g/t Ag and 0.18 g/t Au over five m from 48.0 m depth. This intercept is associated with similar alteration but with lower pyrite content and corresponding lower grades. Hole LJDH24-001 was not mineralized.

Mega-Gold scout drill results

A total of eight scout drill holes were completed in the Mega-Gold target area for a total of 2,425.20 m. These holes display a variety of vein types, elevated gold, copper and molybdenum, and hydrothermal alteration zoning consistent with a high-level porphyry environment. Higher temperature alteration minerals suggesting proximity to a porphyry is most strongly developed in the first three Mega-Gold holes reported July 2, 2024. These holes also exhibited narrow zones of strong mineralization in MGDH24-002 with two m of 1.8 g/t gold and 0.35 per cent copper from 89.0 m depth and 1.5 m of 11.05 g/t gold from 127.5 m depth in MGDH24-003, confirming a mineralized fluid source at depth. Holes MGDH24-004 to MGDH24-006 exhibit alteration assemblages transitional between phyllic and propylitic alteration domains whereas holes MGDH24-007 and MGDH24-008 are dominantly propylitic alteration.

Integrating results from these initial eight scout holes with ground magnetics and 3-D (three-dimensional) induced polarization (IP) surveys clarifies the geologic controls on mineralization in the broader Soledad project and further refines the porphyry potential within the Mega-Gold target area. A large, north-trending precursor (premineral) intrusion is evident from the ground magnetics survey. Most of the important strongly mineralized tourmaline breccia pipes and breccia complexes in the district occur along the margin of this intrusion or near satellite precursor intrusions. Within the Mega-Gold target area, strong IP chargeability and conductivity responses occur within an embayment in the precursor intrusion. Mega-Gold drill holes MGDH24-001 to MGDH24-006 were drilled in the area dominated by strong pyrite mineralization. These are interpreted to be two separate pyrite shells related to underlying porphyry intrusions. Strongly conductive rock beneath the pyrite shells are potential zones of porphyry mineralization and warrant additional drilling.

Resource expansion potential

The expanded Soledad project covers all of the prospective area of known outcropping mineralized intrusion-related tourmaline breccias and related distal epithermal precious metals mineralization. Multidisciplinary exploration has defined 154 targets to date, with 35 (23 per cent) of those targets tested by drilling. Several opportunities exist to expand the initial inferred resource, including 52 untested breccia targets.

About Chakana Copper Corp.

Chakana Copper is a Canadian-based minerals exploration company that is currently advancing the expanded 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. Exploration drilling in 2024 targeted 1) high-grade breccia-hosted mineralization at Estremadoyro; 2) precious metal mineralization at the La Joya high-sulphidation epithermal zone; and 3) mineralization related to a causative intrusion in the Mega-Gold target area.

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 transport in batches to the ALS facility in Callao, Lima, Peru. Sample batches include certified reference materials, blanks and duplicate samples that are then processed under the control of ALS. All samples are analyzed using the ME-MS61 method following a four-acid digestion (ICP (inductively coupled plasma) technique that provides a comprehensive multielement overview of the rock geochemistry), while gold is analyzed by fire assay (AA24) on a 50-gram sample and GRA22 when values exceed 10 g/t by AA24. Overlimit silver, copper, lead and zinc are analyzed using the OG-46 procedure.

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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