2022-05-19 | TSXV: PERU | Press release

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Vancouver, British Columbia–(Newsfile Corp. – May 19, 2022) – Chakana Copper Corp. (TSXV: PERU) (OTCQB: CHKKF) (FSE: 1ZX) (theCompanyorShakana“) is pleased to announce a non-brokered private placement of up to 63,636,363 units of the Company (“Units“) at a price of C$0.11 per unit for gross proceeds of up to C$7.0 million (the “Private placement“).

Each Unit will consist of one ordinary share in the capital of the Company (each, a “Share“) and one-half common share purchase warrant (each whole warrant, one “To guarantee“). Each warrant will entitle its holder to purchase one additional share at a price of $0.20 per share for a period of two years from the closing of the private placement. The Company may accelerate the expiry of the warrants subscription if, for ten consecutive trading days, the closing price of the shares is greater than $0.30.

Pursuant to an agreement between the Company and Gold Fields Nazca Holdings Inc. (“Gold Fields”), an indirect wholly-owned subsidiary of Gold Fields Limited (see press release dated April 19, 2019), Gold Fields has informed the Company that she intends to participate in the financing.

The Company intends to use the net proceeds of the private placement for the exploration and development of the Company’s high-grade copper-gold-silver discovery at the Soledad project, located in the Ancash region of Peru. , and for general working capital and administrative purposes. On January 11, 2022, the Company announced a first inferred resource containing 191,000 ounces of gold, 11.7 million ounces of silver and 130 million pounds of copper in seven tourmaline breccia pipes.

Chakana may pay finder’s fees on a portion of the gross proceeds of the Private Placement to certain arm’s length parties who assist the Company in introducing subscribers to the Private Placement. The private placement is subject to all necessary regulatory approvals, including the approval of the TSX Venture Exchange

The common stock has not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the requirements of ‘registration. This press release does not constitute an offer to sell or a solicitation of an offer to buy any such securities in any jurisdiction in which such offer or sale would be unlawful.

About Chakana Copper Corp.

Chakana Copper Corp is a Canada-based mining exploration company currently advancing the Soledad project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad project is notable for high-grade copper-gold-silver mineralization that is hosted in tourmaline breccia pipes. An initial inferred resource estimate for seven breccia pipes was announced in January 2022 (see press release dated February 23, 2022), with 6.73 Mt containing 191,000 ounces of gold, 11.7 million ounces of silver and 130 million pounds of copper. Additionally, extensive multidisciplinary exploration has defined 122 exploration targets, of which 18 have been tested to date (15%), confirming that Soledad is a large, well-endowed mineral system with strong exploration potential. Chakana investors are in a unique position as the Soledad project offers exposure to base and precious metals. For more information on the Soledad project, please visit the website at www.chakanacopper.com.

ON BEHALF OF COUNCIL

(sign) “David Kelly

David Kelly

President and CEO

For more information, contact:

Joanne Jobin, Investor Relations Officer

Telephone: 647 964 0292

Email: jjobin@chakanacopper.com

Neither the 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.

Notice Regarding Forward-Looking Statements: This release contains forward-looking statements, including statements relating to the use of proceeds and the completion of the Private Placement. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could 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 statements. prospective. . Forward-looking statements or information relate to, among other things, the interpretation of the nature of mineralization atSoledad copper-gold-silverproject (the “Project”), the potential for expansion of mineralization and resource development and growth within the Project, the planning of additional exploration work, the ability to de-risk targets of exploration potential and our belief in the potential for mineralization in unexplored portions 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 publicly announce any such statements, events or developments, except as required by law.

NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES

OR BROADCAST IN THE UNITED STATES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/124715

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