Chakana Copper Advances High-Grade Gold Project in Peru

• Chakana Copper is a junior exploration company focused on Peru. They've made a significant copper, gold, and silver discovery in the Ankash province, south of Barrick's Pierina mine.
• Goldfields, a strategic investor, has invested $12 million in Chakana since 2019.
• The company has aggressive exploration plans for 2023 to expand resources and test more targets.
• Despite the depressed market for equities, copper has a promising future due to its role in clean energy transition.
• There is an impending supply gap for copper, and Chakana has a high-grade resource in an active mining district.
• Peru underwent political turmoil, but the environment has since stabilized. The mining industry is vital for Peru, the second-largest copper producer globally. Recent political changes have favored the mining industry, making Peru more attractive to investors.

About Chakana Copper

Chakana Copper (TSX-V: PERU) is a minerals exploration company focused on identifying and advancing large, high-grade copper systems in Peru. Through its wholly owned Peruvian subsidiary, the company is advancing the Soledad project in the prolific Miocene mineral belt.

The company's goal is to efficiently progress projects from discovery through resource definition and position them for further development by mid-tier and major mining companies. Chakana employs a selective approach, looking for de-risked assets with characteristics of large, above average grade mineralized systems with significant upside potential.

Leveraging the latest innovations in exploration technology, Chakana funds aggressive drilling programs to rapidly test a project's upside. The company's experienced executive team has a proven track record of mineral discovery, exploration success, resource expansion, project development, and monetizing assets to deliver value for shareholders.

By targeting prospective copper projects in Peru and expertly executing disciplined exploration programs, Chakana aims to create significant shareholder value through potential copper discoveries.

Interview with President & CEO, David Kelley

Drilling to Unlock Value at Soledad Project

The Soledad project is located in the prolific Ancash mining province in central Peru, approximately 35km south of Barrick's Pierina gold mine. The project hosts high-grade, near-surface gold-copper-silver mineralization as well as large-scale porphyry targets. A maiden resource estimate outlines 109,000 ounces of gold equivalent grading 8.8 g/t AuEq within 650,000 tonnes starting at the surface. This resource is based on drilling at just seven breccia pipes within a 2km by 1km area, representing only 28% of the known breccia pipe targets on the property.

Significant exploration potential remains, particularly at the Paloma porphyry target which measures 2.5km by 1km and exhibits a classic porphyry signature.

Strategic Partner Validates Exploration Potential

In 2019 Gold Fields Limited (NYSE:GFI) invested $12 million into Chakana through a strategic partnership agreement. Gold Fields owns a 15% interest in the Soledad project.

Gold Fields is a globally diversified gold producer with assets in Australia, Peru, South Africa, West Africa and Chile. The company has endorsed Chakana's exploration plans at Soledad. Gold Fields' extensive due diligence process confirmed the project's potential to host a world-class discovery. The company continues to support Chakana's exploration and fundraising efforts.

Fully Permitted for Large Drill Campaign

In June 2023, Chakana received approval to drill an additional 1,800 hectares south of its existing permitted area. This approval doubles the drill target area and enables testing of the entire breccia pipe field and Paloma porphyry target.

Chakana has planned a 4,000m drill program for 2023, including nine holes testing the core of the Paloma porphyry target. Additional drilling will expand resources at the high-grade breccia pipes.

Peru Regaining Mining Investment Appeal

Political risk in Peru dampened investment into the country's prolific mining industry over the past two years. However, the election of a more mining-friendly administration in 2022 has renewed confidence. Major mining companies are progressing with billion-dollar projects, including Rio Tinto and First Quantum's joint $5.3 billion Quellaveco copper mine development.

Peru's status as one of the top global copper producers and recent political stability bodes well for investment in the sector. Chakana is well positioned with its copper-gold project.

Well Capitalized for Aggressive Exploration

Chakana Copper is currently completing a capital raise to fund its 4,000m drill program in early 2023. Strategic partner Gold Fields has signaled their support to follow their money and participate.

The drill program is designed to significantly expand resources at Soledad and test multiple new target areas, including the compelling Paloma porphyry target.

Potential to Unlock District-Scale Opportunity

A discovery at Paloma would be a transformative event for Chakana. The project would transition from a modest high-grade gold development opportunity to a district-scale porphyry play.

Chakana Copper's experienced board includes several ex-senior mining executives who recognize the project's world-class discovery potential. Current exploration is focused on proving this potential through the drill bit.

With secure land tenure, strong local support, excellent infrastructure and a fully permitted 4,000m drill program planned, Chakana Copper is poised for a catalyst-rich 2023. The current depressed market valuation provides a compelling entry point for investors seeking leverage to new high-grade discoveries in Peru's prolific minerals belts.

The Investment Thesis

For investors seeking exposure to high-grade gold and copper exploration:

• The Soledad project hosts proven high-grade mineralization starting at the surface, with significant upside from expanding known resources and testing new targets.
• The project is located in a premier mining jurisdiction in Peru. Recent political developments are renewing investor confidence in Peru.
• Strategic partner Gold Fields validates the exploration potential and their ongoing support derisks the investment.
• Extensive exploration permits allow for aggressive drill testing of multiple compelling targets in 2023.
• The current market environment provides an opportunity to invest at a discounted valuation.

However, it is important to note that Chakana Copper needs to raise additional capital in order to fund its planned 4,000m drill program. The company's ability to raise sufficient funds in the current market environment introduces uncertainty and risk to the investment thesis. While Chakana Copper presents some attractive attributes, investors should carefully consider the potential risks and dilution associated with an early-stage exploration investment requiring future financing.