PERU.V · 2018-05-23

Chakana Copper Acquires Four New Breccia Pipes, Doubles Soledad Land Position

Mergers & Acquisitions Property Options & Staking Exploration Programs

NEW WS RELEAS SE

CH HAKANA C COPPER AC CQUIRES F FOUR NEW W BRECCI IA PIPES, D DOUBLES SOLEDAD S LAND POS SITION

Vancouv ver, B.C., M May 23, 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 rights at th he Soledad p project (the “Project”) optioned fr from Condor r Resources s Inc. Chakana now has, or r can earn, a a 100% inter rest in 2,018 8.89 hectares s covering th he cluster of f nine known br reccia pipes shown in F Figure 1. Th he Project is located 35 k km south of f the Pierina mine in the pro olific Mioce ene metallogenic belt of Peru. The n new mineral rights were acquired thr rough an option n, an outrigh ht purchase, a and staking.

“The exp pansion and consolidatio on of our mi ineral rights s at Soledad is strategic as it covers s four additiona al mineralize ed tourmalin ne breccia p pipes and it allows access to the c cluster of br reccia pipes fro om the valley y below”, sa aid President t and CEO D David Kelley

y. “The four r additional pipes include t the Huancara ama Breccia a Complex, P Paloma East t and West p pipes, and P Perenne, brin nging the total number of principal pip pes to nine. All have c characteristi ic surface m mineralization n and breccia t textures that t make them m highly pro ospective dri ill targets. I In addition, there are eleven lcanic rock consisting of sheeted areas wi ith strongly y altered an ndesitic vol d quartz-ser ricitetourmalin ne veining n now believed to be the vertical exp pression of b blind brecci ia bodies,” a added Mr. Kelle ey.

Previous surface roc ck chip and channel sam mpling over Breccia Pip pes 1 and 5 (Bx 1 and B Bx 5, respectiv w strongly anomalous gold vely) by Co ondor Resou urces and M Mariana Res sources show results (F Fig. 2). Rec cent rock chip and cha annel sampl ling by Cha akana over the Paloma a and Huancara ama pipes s show a sim milar strong geochemica al response to Bx1 an nd Bx5 (Fig g. 3). Sampling g of the Pere enne pipe is i in progress.

“These s sampling res sults are high hly encourag ging as they y suggest a st tyle of mine eralization si imilar to what we have al lready drille ed in Bx 1 and Bx 5. The Huanc carama Breccia Compl lex is especially y exciting as it is the lar rgest exposu ure of miner ralized brecc cia we have encountered d thus far at sur rface,” states s Kelley.

Huancara ama is a brec ccia complex x with a mai in massif on n the east tha at measures a approximate ely 60 metres in n diameter. It is surround ded by 5 add ditional brecc cia bodies th hat extend to

the west fo or 200

metres an nd a collaps se zone adja acent to the m massif that measures 30 0 by 50 met tres (Fig. 3). The main massif is strong gly anomalo ous in gold w with values u up to 9.6 g/t Au. Limited d sampling o of the periphera al breccia bodies show that they a are anomalo ous with val lues up to 1 1.23 g/t Au. . The collapse feature is re eported to h have resulted d from histor ric undergro ound remova al of minera alized

material allowing the ground above to collapse. The breccia complex is at an elevation of 3,950 metres, 450 metres below the highest pipe Breccia Pipe 6 (Bx 6) with an elevation of 4,400 metres.

The Paloma pipes include two prominent breccia pipes along a northeast trending structural zone (Fig. 3). Paloma East is a conical shaped pipe with a diameter of 25 metres. The larger Paloma West pipe measures 30 by 40 metres and is surrounded by smaller breccia bodies and strongly sericite-altered andesitic tuff. The northeast trending Paloma zone measures 340 metres and ranges in elevation from 4,000 to 4,165 metres. Surface rock samples are strongly anomalous with values up to 7.79 g/t Au (Fig. 3).

Breccia textures and alteration are consistent between the different breccia pipes with shingle and mosaic breccia being most common (Fig. 4). Alteration consists of pervasive quartz-sericitetourmaline replacement of all primary minerals in the host andesitic crystal-lithic tuff. Drilling at Bx 1 and Bx 5 has shown that both types are breccia can be strongly mineralized, with exceptional grades found in shingle breccia at the breccia pipe margin. Chakana began a 16,000m drill program in August of 2017 designed to determine the economic potential of several quartz-tourmaline-sulfide breccia pipes that crop out at surface. A total of 14,700m have been drilled to date in 55 holes. Highlights from Chakana drilling include 113.0m of 1.17% Cu, 3.58 g/t Au, and 51.5 g/t Ag (3.95% Cu_eq) from surface 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) from 12m in Bx 5 (see news releases dated Feb 7 and Feb 22, 2018 at www.chakanacopper.com).

Summary of Land Acquisition

In the first transaction, 10 mining concessions totaling 630.73 hectares were acquired April 1, 2018 through a purchase option agreement between Chakana Resources S.A.C. and a Peruvian family. Pursuant to this option agreement, Chakana Resources S.A.C. can acquire a 100% interest in the optioned properties in consideration for aggregate cash payments of US$2,300,000 over 4.5 years with US$1,500,000 of this amount due up exercise of the option. Under the terms of the option agreement, the vendors are entitled, upon exercise of the option, to a 2% NSR that Chakana can purchase at any time for USD $2,000,000.

Two smaller mining concessions totaling 31.84 hectares were purchased outright from a private Peruvian company and an individual for USD$200,000. There are no retained royalties.

An additional 217.63 hectares of mining concessions have been acquired directly by Chakana through application with the Instituto Geológico Minero y Metalúrgico (INGEMMET).

Sampling and Analytical Procedures

Chakana follows rigorous sampling and analytical protocols that meet industry standards. 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 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.

Figure 1 – Map showing g original Soledad land positi ion optioned from Condor Resources (blue) and expande ed land position (b black outline).

Figure 2 – Maps showing g gold in surfa ace rock sample es collected by y Condor Reso ources and Mar riana Resource es over (A) Bx 1, and (B) Bx 5. For additio onal results an nd a discussio on of the sam mpling and ana alytical method ds see www.chak kanacopper.com m Readers are e cautioned tha at surface rock samples are, b by nature, selec ctive and are un nlikely to represen nt average grad des on the Proje ect.

Figure 3 –

Maps showin ng gold in sur rface rock sam mples collected d by Chakana o over (A) the H Huancarama B Breccia

Complex, and (B) the Pa aloma East and d Paloma West t pipes. For ad dditional result ts and a discussion of the sam mpling and analyt are cautioned that surface ro tical methods see www.chak kanacopper.com

m. Readers a ock samples a are, by nature, sele ective and are u unlikely to rep present average e grades on the Project.

Figure 4 – Images showi ing surface exp pression of Bx x 1, Bx 5, Huan ncarama Brecc cia Complex, a and Paloma Ea ast and West. Note e drill rig for scale for Bx 1 a and Bx 5. Main n massif on rig ght at Huancara ama measures approximately y 60 m across. Distance between Paloma Eas st and Paloma West is 220 metres. Rock k samples from m: Bx 1 (A) s shingle breccia, (B B) mosaic breccia (field of vi iew 1.5 m wid de); Bx 5 (C) s shingle breccia a, (D) mosaic b breccia; Huanc carama gle breccia. (E) mosaic c breccia, (F) sh hingle breccia;

; Paloma West (G) shingle br reccia, Paloma East (H) shing

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