Mr. David Kelley reports

CHAKANA PROVIDES UPDATE TO SHARES FOR DEBT TRANSACTION

Further to the news release dated Sept. 11, 2025, regarding the settlement of debt owed by Chakana Copper Corp. to certain directors, officers and consultants for management fees and services previously provided, the company is clarifying the number of shares issued and the pricing disclosed in that release. The total debt outstanding to the creditors was $644,791, incurred from May, 2021, to August, 2025. The company has agreed to settle an aggregate of $246,625 of this amount through the issuance of 2,529,487 common shares at a deemed price of 9.75 cents per share. In addition, the creditors have agreed to forgive and write off $353,455 in fees otherwise payable to them by the company. Together with aggregate cash payments of $44,711 made to the creditors, this transaction fully settles all remaining board and management debt.

The debt shares will be subject to a hold period under applicable Canadian securities laws expiring four months and one day from the date of issuance. The shares-for-debt transaction remains subject to the final approval of the TSX Venture Exchange.

Certain creditors are 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 shares-for-debt transaction for 2,426,923 shares is exempt from the formal valuation and minority shareholder approval requirements pursuant to the exemptions contained in sections 5.5(c) and 5.7(1)(a) of MI 61-101. The company further confirms that the issuance of the debt shares to insiders will not result in the creation of a new insider or a new control person.

About Chakana Copper Corp.

Chakana is a Canadian-based mineral exploration company that is currently advancing 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 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, a qualified person as defined by National Instrument 43-101, reviewed and approved the technical information in this news release.

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