Chakana Copper Expands Mineral Rights by 1,066 Hectares Acquiring Second Cluster of Copper-Gold-Bearing Breccia Pipes

NEW WS RELEAS SE

CH HAKANA C COPPER E EXPANDS M MINERAL R RIGHTS BY Y 1,066 HE ECTARES ACQU UIRING SEC COND CLU USTER OF COPPER-G GOLD-BEA ARING BRE ECCIA PIP PES

Vancouv ver, B.C., Ju uly 16, 2018 8 – Chakana Copper C Corp. (TSX- -V: PERU; OTC: CHK KKF; FWB: 1Z

ZX) (the “C Company” o or “Chakana”), is pleas sed to annou unce that it has expande ed its mineral r rights adjace ent to the So oledad proje ect (the “Pro oject”) optio oned from C Condor Reso ources Inc. Chakana now h has, or can e earn, a 100% % interest in n a total of 3,085 hectares covering g two clusters o of breccia p pipes shown n in Figure 1. The new w 1,066 hec ctares of min neral rights were acquired through an option agre eement with Minera Bar rrick Misqui ichilca S.A. ("Barrick"). The Project is s located 35 5 km south o of the Pierin na mine in th he prolific M Miocene met tallogenic belt of Peru.

“We are excited to have complet ted this agreement with Barrick, wh hich significa antly expand ds our mineral r rights to the south of Sol ledad and br rings a new c cluster of mi ineralized to ourmaline br reccia pipes and d occurrence es to the pro oject”, said P President an nd CEO Dav vid Kelley. “ “The new clu uster, referred t to as Compa añero, is loc cated 2.5 km m southwest of the main n cluster of p pipes at Soledad. The clus ster consists of 5 princi iple tourmal line breccia bodies, one e of which has a prom minent outcrop like many o of the other r known bre eccia pipes in the Soled dad cluster (Fig. 2).” T These breccias occur in b both andesitic tuff of t the Calipuy y formation, and arenit te of the C Chimu formation

n. Results fr rom surface sampling sh hows strong gly anomalou us gold from m composite e rock chip sam mples with r results up t to 14.25 g/t t Au (Figs. 3a and 3b b). These re esults are h highly significan nt as they su uggest simila ar mineraliza ation to what t has already y been drille ed in Bx 1 an nd Bx 5 over th he last 11 mo onths. The 5 breccia pipes at Compa añero bring t the project t total to 14 kn nown pipes, wi ith an additi ional 11 areas having st trongly alter red andesitic c volcanic ro ock consistin ng of sheeted q quartz-sericite-tourmalin ne veining be elieved to be e the vertica al expression n of blind br reccia bodies.

Surface exposures show both h shingle a and mosaic c-textured b breccias, fav vorable fea atures encounte ered in outc crop and dr rilling in th he Soledad cluster (Fig

g. 4). Altera ation consis sts of pervasive e quartz-seri icite-tourma aline replace ement of all l primary m minerals in th he host and desitic crystal-li ithic tuff and d sericite alte eration of are enite clasts. Drilling at B Bx 1 and Bx 5 has shown n that both type es of breccia a can be stron ngly minera alized, with e exceptional g grades often n found in sh hingle breccia a at the breccia a pipe margin n.

Soledad Drilling Up pdate

Chakana began a 16, ,000m drill p program in A August of 2017 designe ed to determine the econ nomic potential of several quartz-tourm maline-sulfid de breccia p pipes that cro op out at su urface. A tot tal of 18,600m have been drilled to da ate in 68 hol les. The dril ll program w was expande ed after disco overy

• 2 -

of a blind breccia pipe adjacent to Bx 1 (see news release dated June 26, 2018 at www.chakanacopper.com). Definition drilling has been completed at Bx 1 down to approximately 450m and is still open at depth. Additional definition drilling is now underway at Bx 5. Highlights from Chakana drilling include 187.0m of 1.05% Cu, 1.18 g/t Au, and 64.9 g/t Ag (2.38% Cu_eq, 3.63 g/t Au_eq) from 46m in Bx 1, and 164.0m of 0.51% Cu, 1.68 g/t Au and 27.4 g/t Ag (1.84% Cu_eq, 2.82 g/t Au_eq) from 12m in Bx 5 (see news releases dated June 26 and Feb 22, 2018 at www.chakanacopper.com).

Summary of Mineral Rights Acquisition

As per the agreement signed July 12, 2018, Barrick grants Chakana an option to acquire a 100% interest in three concessions adjoining the southern extent of the Soledad project (Fig. 1). Under terms of the agreement, Chakana has 5 years to complete a minimum of 2,000m of drilling and produce a Preliminary Economic Assessment (PEA) report compliant with National Instrument 43-101. Upon exercise of the option, Barrick will retain a 2% NSR subject to Chakana’s right to purchase 50% of the royalty for US$2,000,000. Barrick will have a one-time right to re-acquire a 70% interest in the concessions within 120 days of exercising the option by paying Chakana three times the aggregate amount of exploration expenditures incurred since the execution date and cancelling the 2% NSR. If a production decision is not made within 7 years of the Back-in Closing Date, Barrick will make pre-royalty payments of US$75,000 per year until a production decision is made for a maximum of 5 years (US$375,000). If Chakana does not contribute its share of project costs their interest will be diluted until 10%, upon which their interest will be converted to a 2% NSR with Barrick’s right to purchase 50% of the royalty for US$2,000,000.

Sampling and Analytical Procedures

Chakana follows rigorous sampling and analytical protocols that meet industry standards. Analytical results in this release are based on composite rock chip samples over a 1 x 2m area. Samples for assay are stored in a secured area until transport in batches to the ALS facility in Callao, Lima, Peru. Samples are processed under the control of ALS with the samples including certified reference materials, a coarse and finely-crushed blank and duplicates samples. All samples are analyzed using the ME-MS41 procedure in order to obtain a comprehensive multielement overview of the geochemistry. Gold is analyzed by ME-MS41 (not considered reliable), AA24 (higher precision) and GRA22 when values exceed 10 g/t. Over limit silver, copper, lead and zinc is analyzed using the OG-46 procedures.

Additional information concerning the Project is available in a technical report prepared in accordance with National Instrument 43-101 made available on Chakana’s SEDAR profile at www.sedar.com.

Qualified Person

Technical information in this news release has been approved by David Kelley, Qualified Professional - Geology designation from the Mining and Metallurgical Society of America, the President, CEO and a Director of Chakana and a Qualified Person as defined by NI 43-101 – Standards of Disclosure for Mineral Projects. Mr. Kelley has verified the sampling and

• 3 -

analytical procedures and has reviewed the assay data set out in this News Release during continued visits to the Soledad project; inspection of samples at site prior to shipment to the assay laboratory; and as the direct recipient of the corresponding assay results from the assay laboratory.

ON BEHALF OF THE BOARD

(signed) “David Kelley”

David Kelley President and CEO

For further information contact:

Michelle Borromeo, Manager – Corporate Communications Phone: 604-715-6845 Email: [email protected]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

This release may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Chakana to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relates to, among other things, the interpretation of the nature of the mineralization at the Project, the potential to grow the Project, the potential to expand the mineralization, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our belief about the unexplored parts of the Project. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward- looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.

• 4 -

Figure 1 – Map showing the entire 100% Chakana-co ontrolled land p position (black k outline), the o original Soleda ad land position op ptioned from C Condor Resourc ces (blue), and d the recent exp panded land po osition from th he Barrick agre eement (green). Ne ew Compañero

• breccia pipe c cluster shown s southwest of m main Soledad c cluster.
  • 5 -

Figure 2 – View looking east at promin nent outcroppin ng mineralized breccia pipe in the Compañero cluster. Dia ameter 5m.

of outcropp ping pipe is approximately 25

• 6 -

Figure 3 –

• Maps showin ng gold in surface composite e rock chip sa amples collecte ed by Chakana a over (A) the e main
• cluster, and (B) the Comp

Compañero pañero West pipe. Readers are cautioned that surface r rock samples a are, by e grades on the Project.

nature, sele ective and are u unlikely to rep present average

• 7 -

Figure 4 –

• images showi ing breccia tex xtures and assa ay values in sam amples collecte ed from the Co ompañero clust ter; A)

mosaic bre eccia with tourm maline matrix from prominen nt outcropping g breccia pipe, 14.25 g/t Au; B B) malachite-s stained quartz-tour rmaline breccia a, 2.22 g/t Au a and 0.13% Cu;

; C) chaotic shi ingle breccia, 1.91 g/t Au; an nd D) shingle-s shaped 3 g/t Au.

quartz aren nite clasts, 4.03