Mr. David Kelley reports

CHAKANA ANNOUNCES PRIVATE PLACEMENT

Chakana Copper Corp. has arranged a non-brokered private placement of up to 17,857,143 units of the company at a price of seven cents per unit for gross proceeds of up to $1.25-million.

Each unit will consist of one common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional share at a price of nine cents per share for a period of three years from closing of the private placement. The company intends to use the proceeds from the private placement to evaluate new opportunities, for exploration and for general working capital purposes.

Insiders may participate 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 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.

The private placement is subject to all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The securities issued under the private placement will be subject to a hold period under applicable securities laws in Canada expiring four months and one day from the closing date of the private placement. No finders' fees will be paid in connection with the private placement.

Shares for debt

The company also announces that it will enter into shares-for-debt settlement agreements with directors, officers and consultants of the company in connection with outstanding debt related to management fees and services previously provided to the company.

Pursuant to the agreements, Chakana will settle an aggregate of $246,625 in outstanding payables owed to the debtees through the issuance of 3,523,214 common shares at a deemed price of seven cents per share. The company also negotiated settlement of all remaining board and management debt and wrote off a total of $354,669. The debt shares will be subject to a hold period under applicable securities laws in Canada expiring four months and one day from the date of issue. The shares-for-debt transaction is subject to the final approval of the TSX-V.

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-cent net smelter royalty over the Soledad property in the active Aija-Ticapampa mining district (see news release dated Oct. 8, 2024). Chakana is also evaluating new opportunities.

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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