Chilean Metals adds equity before Zulema drilling commences

Toronto, December 23 2016 - Chilean Metals Inc. ("Chilean Metals," "CMX" or the "Company") (TSX.V:CMX, OTCQB: CMETF, SSE:CMX, MILA: CMX) has accepted private placements on $600,000 worth of equity investment at $0.15 per share. All securities issued under the private placement will be subject to a four-month hold period in accordance with applicable securities laws.

Terry Lynch Chilean Chairman commented "Completion of this placement will insure we have adequate funds to complete the first round of drilling on Zulema. It is a Copper Gold target that is analogous to the nearby Candelaria mine since previous drilling demonstrated the presence of a similar style sulphide system. Pervasive alteration, skarnification and widespread copper and gold bearing sulphides in magnetiferous andesitic rocks further support a geologic model similar to Candelaria. Our primary target is an intensely skarned hydrothermal breccia with widespread disseminated copper.".

Lynch commented further. "We have signed our drilling contractor and will commence drilling in early January. We expect program to take approximately 45 days from commencement of drilling. We will be providing additional details on our program in early January just prior to drill commencement"

At the request of the TSXV we would like to provide additional disclosure on two previously announced items.

Firstly We wish to confirm share for debt noted in 11/14/2016 release was approved by TSX-V and completed (The Company also wished to advise that it has agreed to convert $174,013 of currently due debentures into common shares at $0.15 per share through the issuance of 1,160,085 shares, subject to regulatory approval.)

Secondly we wish to provide additional disclosure on our retention of Michael Baybak as an Investor Relations advisor to the company. Mr. Baybak was retained on July 4, 2016 for an original contract period of six months at a rate of $7,000 USD per month. In addition he was granted 200,000 options which vest 50,000 options every three month. The options have a five year life and were exercisable at $.15 per share.

Chilean Metals will require regulatory approval to complete the private placement.


About Chilean Metals

Chilean Metals Inc. is a Canadian Junior Exploration Company focusing on high potential Copper Gold prospects in Chile & Canada.

Chilean Metals Inc is 100% owner of five properties comprising over 50,000 acres strategically located in the prolific IOCG ("Iron oxide-copper-gold") belt of northern Chile. It also owns a 3% NSR royalty interest on any future production from the Copaquire Cu-Mo deposit, recently sold to a subsidiary of Teck Resources Inc. ("Teck"). Under the terms of the sale agreement, Teck has the right to acquire one third of the 3% NSR for $3 million dollars at any time. The Copaquire property borders Teck's producing Quebrada Blanca copper mine in Chile's First Region.

Chilean Metals Inc is the 100% owner of four Copper Gold exploration properties in Nova Scotia on the western flank of the Cobequid-Chedabucto Fault Zone (CCFZ); Fox River, Parrsboro, Lynn and Bass River respectively. Initial targeting and geophysics has been conducted on all properties, At Bass River North, airborne geophysics identified a major VTEM cluster on trend with the Pb/Zn/Ag mineralization exposed at surface and in drill holes to the southwest. Modeling of the airborne data by Minotaur (Australia) identified 3 priority targets recommended for ground based geophysics prior to drilling.


ON BEHALF OF THE BOARD OF DIRECTORS OF Chilean Metals Inc.

"Terry Lynch"
Terry Lynch, Chairman



Contact: terry@chileanmetals.com

The Qualified Person for Chilean Metals Inc., as defined by National Instrument 43-101, is Gary Lohman, P. Geo., Vice President, Exploration.


Forward-looking Statements: This news release may contain certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that CMX expects to occur, are forward looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding current and future exploration programs, activities and results. Although CMX believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing, inability to obtain required regulatory or governmental approvals and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements.

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