Mr. David Kelley reports

CHAKANA PROVIDES CORPORATE UPDATE & EXPLORATION PLAN FOR LA JOYA PROJECT, PERU

Chakana Copper Corp. has provided this update and outlined its exploration plan for the La Joya project in Ancash, Peru. After eliminating all property payments and consolidating its share structure, the company is focusing its exploration efforts on three mineral-rich target areas within the newly defined La Joya project.

The La Joya project includes three principal target areas:

• The La Joya high-sulphidation epithermal (HSE) system, where minimal 2024 drilling confirmed high-grade silver mineralization including 1,005.0 grams per tonne silver and 0.45 gram per tonne gold over 0.75 metre within an alteration zone with 700 metres of strike length;
• The Mega-Gold intrusive centre, where 2024 scout drilling confirmed a high-level porphyry environment with two yet-to-be-tested discrete porphyry targets;
• The Companero gold zone, where hydrothermal breccia is exposed at surface in several outcrops over an area of 250 metres diameter with channel sample assays up to 14.4 grams per tonne gold.

The La Joya project is located within an option agreement with Barrick Gold and has no property payments.

"The fully permitted drill targets at La Joya (HSE) and Mega-Gold are exciting discovery opportunities. We have already encountered high-grade silver mineralization in drilling at La Joya within the same stratigraphy that hosts significant mineralization in the district. At Mega-Gold, our initial scout drilling, combined with geophysics and geochemical zoning, provide strong vectors defining two discrete porphyry targets," stated president and chief executive officer David Kelley.

2025 exploration plan

The La Joya (HSE) and Mega-Gold prospects are fully permitted for additional drilling. At La Joya (HSE), detailed mapping and a detail ground geophysical survey will be completed prior to drilling. The target is a stratigraphically hosted bulk-tonnage precious metals deposit. Approximately 1,900 metres of drilling are anticipated. At Mega-Gold, a definitive drill test of the PT-1 porphyry target is planned with an anticipated depth of 400 metres. The final stage of permitting allowing drilling at the Companero gold zone will be completed. The environmental permit has been awarded, with the initiation of activities remaining to be completed.

La Joya high-sulphidation epithermal prospect

The La Joya (HSE) target area is associated with high-sulphidation advanced argillic alteration consisting of vuggy silica, alunite, dickite, zunyite, diaspore and pyrophyllite. The zone of alteration extends 700 metres in a north-south direction at an elevation of approximately 4,500 metres. Surface rock samples collected from the alteration zone have silver and gold values up to 1,300 grams per tonne and 0.36 gram per tonne, respectively.

Three shallow holes were completed at La Joya in 2024 for a total of 465.5 metres. 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 silver and 0.25 gram per tonne gold over 4.5 metres from 58.0 metres depth. Within this interval, vuggy silica is present over a 0.75-metre interval with 1,005.0 grams per tonne silver and 0.45 gram per tonne gold (see news release dated Aug. 29, 2024). The mineralized interval is hosted within andesite tuff that shows evidence of advanced argillic alteration. Shallow drilling confirmed high-grade precious metal mineralization hosted in prospective volcanic stratigraphy and warrants additional drilling.

Mega-Gold intrusive centre

The Mega-Gold intrusive centre is a very large area occupying 2.5 square kilometres with anomalous gold in soil overlying pervasive tourmaline/quartz/white mica alteration, overprinted by localized advanced argillic alteration zones and tourmaline breccias. The target area is underlain by older andesitic tuff (Calipuy formation) and a premineral granodiorite, thought to be the first pulse of intrusive activity in the Aija-Ticapampa district. Within the gold anomaly is a distinct offset (3-D) induced polarization chargeability feature coincident with the soil anomaly. Beneath the strong chargeability zones are discrete zones of conductivity, believed to reflect mineralizing intrusions.

An initial proof-of-concept drilling program was completed in 2024 to test the idea that the Mega-Gold intrusive centre is part of a mineralized porphyry system. A total of eight scout drill holes were completed across a broad area totalling 2,425.20 metres. These holes display a variety of vein types (principally B and D veins); elevated gold, copper and molybdenum; and hydrothermal alteration zoning consistent with a high-level porphyry environment (see news release dated Aug. 29, 2024). All holes encountered pyrite-chalcopyrite-molybdenite mineralization hosted in veins. Higher-temperature alteration minerals suggesting proximity to a porphyry are most strongly developed in the three easternmost holes drilled in the Mega-Gold target area (see news release dated July 2, 2024). These holes also exhibit narrow zones of strong mineralization in MGDH24-002 with 2.0 metres of 1.8 grams per tonne gold and 0.35 per cent copper from 89.0 metres depth and 1.5 metres of 11.05 grams per tonne gold from 127.5 metres depth in MGDH24-003, confirming a mineralized fluid source at depth. The strong IP chargeability zones 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 (PT-1) and warrant additional drilling.

Companero gold prospect

The Companero gold zone is located in the southwest part of the La Joya project adjacent to a premineral intrusion. Mineralized hydrothermal breccias are exposed at surface in several outcrops within an area of approximately 250 metres in diameter. The breccias are strongly anomalous in gold with up to 14.4 grams per tonne in channel samples and secondary copper minerals are noted in several localities. Three heavy mineral concentrate samples collected downstream and adjacent to the Companero zone contain 19, 23 and 33 pristine gold grains. There has been no drilling in the Companero area.

About Chakana Copper Corp.

Chakana Copper is a Canadian-based minerals exploration company that is currently advancing the La Joya project located in the Ancash region of Peru, a highly favourable mining jurisdiction with supportive communities. La Joya has three well-defined target areas based on extensive multidisciplinary exploration: (1) precious metal mineralization at the La Joya high-sulphidation epithermal zone; (2) mineralization related to the Mega-Gold intrusive centre; and (3) the Companero gold zone. In addition, Chakana owns a 1-per-cecnt net smelter royalty over the Soledad property owned by Condor Resources in the active Aija-Ticapampa mining district (see news release dated Oct. 8, 2024).

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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