Chakana Intersects 12m of Massive Sulfide with 27.39% Copper, 967.7 g/t Silver, and 0.38 g/t Gold at Soledad, Peru

Soledad Project Highlights Include:

• Huancarama East - 41m of 1.40 g/t Au, 1.24% Cu, and 79.5 g/t Ag (2.83% Cu-eq) from 112m depth;

• Paloma West - 48.45m of 1.09 g/t Au, 0.84% Cu, and 39.6 g/t Ag (1.89% Cu-eq) starting at 20.3m depth;

• Bx1 - 53m of 4.51 g/t Au, 1.22% Cu, and 55.5 g/t Ag (4.64% Cu-eq) starting at 40m depth; and 12m of 0.38 g/t Au, 27.39% Cu, and 967.7 g/t Ag (35.91% Cu-eq) starting at 140m depth;

• Bx7 - 39m of 1.39 g/t Au, 0.13% Cu, and 50.4 g/t Ag (2.25 g/t Au-eq) starting at 211m depth.

Vancouver, July 27, 2021 - Chakana Copper Corp. (TSXV: PERU) (OTCQB: CHKKF) (FSE: 1ZX) (the "Company" or "Chakana"), is pleased to provide results from nine resource definition and exploration holes totaling 1,993.15m from the Soledad project, Ancash, Peru (Table 1). Drilling continues as part of a fully funded 26,000m exploration and resource drilling program planned for 2021 (Fig. 1). The Company will complete approximately 16,000m of resource definition drilling. These results will increase confidence in the initial resource estimate, anticipated in Q4 of 2021.

"These results are an outstanding continuation of the drill program we started in 2020. We have seen zones of massive sulfide at Soledad before but never to this extent. Even with 55,000 metres drilled to date on multiple mineralized breccia pipes, we are still encountering these types of features, which demonstrates the exceptional upside potential of this project. This is particularly significant when you consider that we have only tested 15 out of 110 targets thus far," stated President and CEO David Kelley.

Drill Results

Table 1. Mineralized intervals from drilling at:

Huancarama (Resource Definition)

Paloma West (Resource Definition)

Bx 1 (Resource Definition)

Bx 7 (Exploration)

* Cu_eq and Au_eq values were calculated using copper, gold, and silver. Metal prices utilized for the calculations are Cu - US$2.90/lb, Au - US$1,300/oz, and Ag - US$17/oz. No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries are not yet available. The formulas utilized to calculate equivalent values are Cu-eq (%) = Cu% + (Au g/t * 0.6556) + (Ag g/t * 0.00857) and Au-eq (g/t) = Au g/t + (Cu% * 1.5296) + (Ag g/t * 0.01307).

Huancarama East

Three holes were drilled through the Huancarama East breccia pipe to the northeast from a platform on the south side of the complex (Figs. 2 and 3). All three holes intersected mineralized breccia, with depths ranging between approximately 70m to 200m below surface. The breccia pipe has approximate lateral dimensions of 100m by 60m and is open at depth. Additional infill holes have been drilled as part of the ongoing drill program. Examples of mineralized drill core from these holes are shown in Figure 5.

Paloma West

Paloma West is located 300m northwest of Huancarama and is part of the Paloma trend (Fig. 2). Three holes were drilled to further define mineralization from surface to a depth of approximately 100m depth. The breccia pipe demonstrates zoning with stronger gold and silver grades near surface and increasing copper grades with depth. Mineralization is open at depth. Examples of mineralized drill core from these holes are shown in Figure 5.

Bx 1

There are two breccia pipes at Bx 1, the Main Zone that crops out at surface, and the North Zone that is 40 metres north of the Main Zone and 125m below surface (Fig. 3). Additional holes were planned to penetrate the north zone to fill in gaps for the resource estimate (see news release dated June 26, 2018). A significant zone of massive sulfide was intersected in hole SDH21-208 (Figs. 4 and 5). Textures indicate sulfide replacement of tourmaline breccia, a common feature documented in several of the breccia pipes. The massive sulfide zone is part of a continuous mineralized interval of 163.6m length, starting at 132.4m depth within the North Zone. Assay composites for the massive sulfide interval were averaged separately from the overlying and underlying intervals given the extreme grade ranges. Additional in-fill holes have been completed at Bx1 to supplement the existing drilling for the resource estimate.

Bx 7

One exploration hole was completed in Bx 7, a mineralized breccia pipe located 300 metres northeast of Bx 1. The hole encountered two mineralized intervals with elevated gold and silver grades, and low overall copper grades. Mineralization is open at depth. Additional holes are needed to define the geometry of the breccia pipe and grade characteristics.

2021 Resource and Exploration Drill Program

Results reported here are part of the fully funded 2021 drill program of 26,000m. Combined with the drilling in the second half of 2020, approximately 32,000m is anticipated through 2021. Of this, 15,939.35m have been reported in 76 drill holes. The remaining metres will focus on new targets located in the northern half of the project that have not been drilled previously but are strategic to any eventual development at Soledad. Exploration targets have been ranked based on their technical merit, access, and logistics.

About Chakana Copper

Chakana Copper Corp. is a Canadian-based minerals exploration company that is currently advancing the Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of high-grade gold-copper-silver mineralization hosted in tourmaline breccia pipes. A total of 55,000 metres of exploration and resource definition drilling has been completed since 2017, testing 15 of 110 total exploration targets, confirming that Soledad is a large, well-endowed mineral system with strong exploration upside. Chakana's investors are uniquely positioned as the Soledad Project provides exposure to several metals including copper, gold, and silver. For more information on the Soledad project, please visit the website at www.chakanacopper.com.

Sampling and Analytical Procedures

Chakana follows rigorous sampling and analytical protocols that meet or exceed industry standards. Core samples are stored in a secured area until transport in batches to the ALS facility in Callao, Lima, Peru. Sample batches include certified reference materials, blank, and duplicate samples that are then processed under the control of ALS. All samples are analyzed using the ME-MS41 (ICP technique that provides a comprehensive multi-element overview of the rock geochemistry), while gold is analyzed by AA24 and GRA22 when values exceed 10 g/t by AA24. Over limit silver, copper, lead and zinc are analyzed using the OG-46 procedure. Soil samples are analyzed by 4-acid (ME-MS61) and for gold by Fire Assay on a 30g sample (Au-ICP21).

Results of previous drilling and additional information concerning the Project, including a technical report prepared in accordance with National Instrument 43-101, are made available on Chakana's SEDAR profile at www.sedar.com.

Qualified Person

David Kelley, an officer and a director of Chakana, and a Qualified Person as defined by NI 43-101, reviewed and approved the technical information in this news release.

ON BEHALF OF THE BOARD
(signed) "David Kelley"
David Kelley
President and CEO

For further information contact:

Joanne Jobin, Investor Relations Officer
Phone: 647 964 0292
Email: jjobin@chakanacopper.com

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.

Forward-looking Statement Advisory: 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 Soledad copper-gold-silver project (the "Project"), the potential to expand the mineralization, and to develop and grow a resource within the Project, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our belief in the potential for mineralization within 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 - View looking north showing outcropping breccia pipes and occurrences within the northern Soledad cluster. Pipes that have been drilled in previous campaigns are shown in red. Breccia pipes shown in green are new discoveries made in 2020. Other pipes and occurrences remain to be tested by drilling. Additional breccia pipes occur on the south half of the property and are not shown here.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/2172/91293_5a3bd0ad54c3bb75_001full.jpg

Figure 2 - Map showing drill holes reported in this release, outcropping tourmaline breccias (darker red shapes), and modeled breccia pipes (light red shapes) based on all drill holes. Light gray contours are 25m interval. Untested outcropping targets are also shown. Blue rectangle in the inset map shows the area of Figure 2 within the overall Chakana property.

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/2172/91293_5a3bd0ad54c3bb75_002full.jpg

Figure 3 - 3D sectional views of the various breccia pipes reported in this release. Light red 3D shapes show breccia pipe geometry based on all drill holes within each pipe. All breccia pipes are presented at the same scale.

To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/2172/91293_5a3bd0ad54c3bb75_003full.jpg

Figure 4 - Massive sulfide intersected in the North Zone breccia pipe at Bx 1. Core diameter is 6.35cm (HQ).

To view an enhanced version of Figure 4, please visit:
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Figure 5 - Select core photos from Paloma West, Huancarama East, and Bx 1 reported in this release: Paloma West SDH21-202 (34.7m) mosaic tourmaline breccia with chalcopyrite-pyrite cement; Paloma West SDH21-204 (97.3m) mosaic breccia with chalcopyrite filling void space in breccia; Huancarama East SDH21-205 (112.9m) black tourmaline breccia with chalcopyrite filling void spaces; Bx 1 SDH21-206 (47.15m) shingle breccia with selective partial clast replacement by chalcopyrite and pyrite; Bx 1 SDH21-208 (246.9) mosaic breccia cemented with chalcopyrite and pyrite. Core diameter is 6.35cm (HQ) in all instances.

To view an enhanced version of Figure 5, please visit:
https://orders.newsfilecorp.com/files/2172/91293_5a3bd0ad54c3bb75_006full.jpg

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/91293