Mr. Douglas Silver reports

CHAKANA PIVOTS TO LA JOYA HIGH-GRADE SILVER DISCOVERY AND PROPOSES SHARE CONSOLIDATION

Chakana Copper Corp. plans to expand on the success of its 2024 drill program by focusing on the exploration of the La Joya high-grade silver discovery confined to its Barrick option, which also includes the Mega-Gold porphyry target area and the Companero gold prospect. The company also announces that it has relinquished its interest in the Aija option agreement in order to eliminate all remaining option payment obligations related to the Soledad mineral concessions and is initiating a proposed share consolidation.

2024 exploration success and 2025 focus

The high-grade silver discovery from scout drilling at La Joya in 2024 yielded 1,005 grams per tonne silver and 0.45 gram per tonne gold over 0.75 metre within 4.5 metres of 323.6 grams per tonne silver and 0.25 gram per tonne gold from 58.0 metres associated with a preserved lithocap and high-sulphidation-epithermal-style (HSE) mineralization (see news release dated Aug. 29, 2024). La Joya is located in the same belt with similar geology as the world-class multimillion-ounce Pierina HSE gold-silver deposit mined by Barrick and located 35 kilometres to the north. La Joya is ready for follow-up drilling and has what appears to be a lower-cost expansion discovery opportunity that will be the focus for 2025. Detailed mapping, sampling and target definition work will be completed prior to a proposed 2,000-metre drill program.

Limited scout drilling at Mega-Gold confirmed narrow zones of strong mineralization, a variety of porphyry-style vein types, elevated gold, copper, molybdenum and hydrothermal alteration zoning consistent with a high-level porphyry environment. The Mega-Gold target area is defined by a very large 2.5-square-kilometre gold-in-soil anomaly and warrants additional drilling.

Companero is an exciting high-grade gold target that requires the final stage of permitting but holds promise after returning surface channel samples up to 14.4 grams per tonne gold (see news release dated July 16, 2018). The final stage of permitting will be completed for this area for future drill testing.

Termination of Aija option agreement

The company has decided to relinquish its interest in the Aija option agreement, eliminating all remaining option related property payment obligations for the Soledad property. Terminating the Condor option agreement (see news release dated Oct. 8, 2024) and Aija option agreement alleviates cash payment commitments of $3,275,000 (U.S.) on ground not deemed to be prospective for a larger discovery. As a result of terminating these agreements, the company has no resource estimate on the Soledad project (see the company's initial resource estimate 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 Chakana's issuer profile on SEDAR+).

The company is focusing on the highly prospective Barrick option, now referred to as the La Joya project, which has no cash payments and is based on expenditures in the ground (see news releases dated July 16, 2018, and Oct. 12, 2021). The company believes that this is both fiscally responsible and offers the greatest potential for larger discovery success.

Share consolidation

The board of directors have approved a restructuring of the company through a consolidation of the company's issued and outstanding common shares on the basis of one new common share for every 10 existing common shares.

The consolidation will affect all shareholders uniformly (except for the treatment of postconsolidated fractional common shares, as noted below) and will not affect any shareholder's proportional ownership interest in the company. The principal effects of the consolidation will be that the number of common shares issued and outstanding will be reduced from approximately 267,008,571 preconsolidation common shares outstanding as of the date hereof to approximately 26,700,857 postconsolidated common shares.

No fractional postconsolidation common shares will be issued. Any fractional common shares resulting from the consolidation will be rounded down to the nearest whole common share. The exercise or conversion price and the number of common shares issuable under any convertible securities of the company will be proportionately adjusted to account for the consolidation. Registered shareholders will receive a letter of transmittal from TSX Trust Company, Chakana's transfer agent, with information on how to replace their preconsolidated common shares with postconsolidated common shares. The completion of the consolidation is subject to the approval of the TSX Venture Exchange.

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.

We seek Safe Harbor.