Mr. Douglas Silver reports

CHAKANA RELINQUISHES CONDOR CONCESSIONS, SOLEDAD PROJECT, PERU

Chakana Copper Corp.'s board has decided to relinquish its option to acquire three concessions from Condor Resources Inc. that make up approximately 25 per cent of the company's expanded Soledad project located in Ancash, Peru.

Douglas Silver, chairman of Chakana, explained: "During this time of difficult market conditions, we were told by investors that they will not fund a project with substantial outstanding property payments. The remaining property payments to Condor in addition to payments already made greatly exceeded the current value of the property. We tried over multiple months to negotiate a reasonable buyout price but were ultimately unsuccessful. While our preference is to keep the consolidated land position together, doing so only makes sense if it is economically feasible. We are still very optimistic about our remaining landholdings becoming a future precious metal and copper producing asset."

According to regulatory procedure, Chakana's existing exploration permits on the Condor concessions will be cancelled and Condor will have to start a new permitting process should they elect to do so. Additionally, Chakana has requested that Condor take possession of the physical assets relating to the Condor concessions, which includes 44,919 metres of drill core and 34 tonnes of rejects and analytical pulps currently stored at Chakana's warehouse facility. Chakana controls the surface rights over the expanded Soledad project, including the Condor concessions, which means that Condor will not have access to the Condor concessions without establishing an access agreement with Chakana. As part of a previous royalty purchase agreement with Condor, Condor will grant a 1-per-cent net smelter return royalty in favour of Chakana over the Condor concessions with a two-kilometre area of interest. Condor will have the right to purchase half of the royalty (0.5 per cent) for $1-million (U.S.) (see Chakana's news release dated March 19, 2019).

Based on an initial inferred resource published in February, 2022, approximately 1.2 million tonnes amenable to extraction by open-pit mining methods and 4.7 million tonnes amenable to extraction by underground mining methods are located on the Condor concessions (see Chakana's news release dated Feb. 23, 2022, and the technical report titled "Independent Technical Report for the Soledad Copper Project, Ancash Department, Peru" dated Feb. 23, 2022, available under the Chakana's issuer profile on SEDAR+).

Although the relinquishment of any portion of a consolidated land position is unfortunate, the company's management believes that the remaining 2,775 hectares are highly prospective. Exploration initially began in 2017 on the Condor concessions and systematically moved to the south based on the recognition of a much larger mineral system. In 2022, several higher-priority shallow targets were tested on the Condor concessions with limited success (see Chakana's news release dated Sept. 22, 2022). All of the obvious outcropping mineralized breccias on the Condor concessions have been drill tested. Since 2023, the focus of exploration has been on the southern half of the project, where recent drilling has discovered additional high-grade copper-gold-silver breccia mineralization at Estremadoyro, high-grade silver mineralization at the La Joya prospect, and defined two discrete porphyry targets within the large Mega-Gold target area (see Chakana's news releases dated May 8, 2024, and Aug. 29, 2024).

Qualified person

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

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