Mr. David Kelley reports

CHAKANA ANNOUNCES CLOSING OF C$1.25 M FINANCING WITH STRATEGIC PLACEMENT FROM EMR CAPITAL

Further to Chakana Copper Corp.'s news release dated Sept. 11, 2025, the company has completed a non-brokered private placement of 17,857,156 units at a price of seven cents per unit for gross proceeds of $1,250,000.92.

Each unit consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles 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.

David Kelley, president and chief executive officer, commented: "We are excited to see such strong support for the financing and to welcome EMR Capital as a new shareholder. The primary use of the proceeds will be for evaluating new opportunities at a time of very strong copper and precious metal prices."

EMR Capital Management Ltd. is a global private equity firm focused on the natural resources sector, leveraging its extensive operational expertise to identify new opportunities throughout the resources life cycle and unlock value for its shareholders. EMR Capital combines operational excellence and environmental stewardship with a sincere commitment to providing long-term sustainable benefits to host communities.

EMR Capital acquired 4,947,948 units in the private placement for total proceeds of $346,356.33, resulting in a 10.5-per-cent non-diluted equity interest in the company. Pursuant to an investor rights agreement between the company and EMR Capital, EMR Capital was granted customary anti-dilution rights to maintain its ownership interest, the right to nominate one director to the company's board of directors and the right to appoint a project advisor to support and oversee the company's mineral project. In addition, an officer of the company purchased an aggregate of 3,166,686 units in the private placement for total proceeds of $221,668.05.

The company intends to use the net proceeds of the private placement to evaluate new opportunities, exploration, and for general working capital and administrative purposes. There are no proposed payments to persons conducting investor relations activities.

Chakana paid aggregate cash finders' fees of $1,928.67 and issued 27,552 non-transferable finders' warrants in connection with the private placement. Each finder's warrant is exercisable to purchase one share at a price of nine cents per share for a period of three years from closing of the private placement.

All securities issued in the private placement are subject to a four-month hold period expiring on Jan. 27, 2026, in accordance with applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws in jurisdictions outside of Canada. The private placement remains subject to the final approval of the TSX Venture Exchange.

In addition, the company announces that the TSX Venture Exchange has approved the previously announced debt settlement with certain directors, officers and consultants (the creditors) for management fees and services previously provided as disclosed on Sept. 24, 2025. This transaction fully settles all remaining board and management debt. The debt shares are subject to a statutory hold period of four months and one day from the date of issuance.

An insider participated in the private placement and certain members of the company's management team participated in the shares-for-debt transaction, which involved the issuance of securities to related parties as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to the exemptions contained in sections 5.5(c) and 5.7(1)(a). The company further confirms that, other than EMR Capital becoming a new insider as a result of its participation in the private placement, these issuances will not result in the creation of any additional insiders or control persons.

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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