Kaizen Discovery Announces Results from Reconnaissance Diamond Drilling at the Pinaya Copper-Gold Project in Peru

Drilling identifies potential for hypogene-enriched porphyry copper-gold system located at depth; HPX's proprietary Typhoon(TM) geophysical survey planned to further delineate target areas

Vancouver, July 7, 2020 - Kaizen Discovery Inc. (TSXV: KZD) (otherwise "Kaizen" or "the Company") is pleased to announce the results from recent exploration diamond drilling at its 100%-owned Pinaya Copper-Gold Project. The Pinaya Project is located in the prolific Andahuaylas-Yauri Porphyry-Skarn Belt in southeastern Peru, which contains some of the world's largest recent copper mine developments.

Highlights:

• Kaizen completed a total of 1,946 metres of diamond drilling in three holes at Pinaya, and all intersected anomalous levels of copper mineralization in altered Puno Group sedimentary rocks without intersecting the causative porphyry intrusions (see Tables 1 and 2 below).
• Hole PDH-164, collared in an area of outcropping lithocap alteration at the Cerro Antaña target, returned evidence of hypogene enrichment-style mineralization - a characteristic feature of giant porphyry copper deposits. In addition, the hole intersected a gold-enriched zone including 18 metres grading 2.54 g/t gold at a depth of 406 metres downhole.
• Kaizen has interpreted the existing Pinaya Mineral Resource to be a shallow apophysis above a large, unroofed porphyry system extending to depth. Historical shallow-penetrating geophysical surveys would suggest that this system is at least 6 kilometres by 2 kilometres in areal extent.
• The next step at Pinaya involves Kaizen's majority shareholder, HPX TechCo Inc. ("HPX") - a wholly-owned subsidiary of High Power Exploration Inc., bringing its proprietary Typhoon™ high-powered geophysical surveying system to Pinaya to outline the deep porphyry system.

"We are encouraged by the results received from this initial round of diamond drilling, which indicate the presence of a large unroofed porphyry system at Pinaya," commented Eric Finlayson, Kaizen's interim Chief Executive Officer. "We will now be bringing HPX's proprietary Typhoon™ surveying system to site, which will allow us to map the deep porphyry system and direct future drilling."

Exploration diamond drilling at Pinaya identifies zones of anomalous copper mineralization in altered Puno Group sedimentary rocks

The 2020 drill program focused on three priority areas: Pedro Dos Mil, Cerro Antaña and Viscachani (see Figure 1 below). These areas were deemed to be prospective for copper-gold mineralization based on interpretations from recent geological mapping and surface geochemical sampling by Kaizen's geologists. Additionally, historic shallow-penetrating geophysical surveys completed by a previous operator showed the presence of shallow (less than 300 metres deep) Induced Polarization ("IP") chargeability anomalies in these areas.

Figure 1. Pinaya Project area showing shallow IP chargeability anomaly and drill collar locations for PDH-163, -164, -165 at the Pedro Dos Mil, Cerro Antaña and Viscachani targets, respectively.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/2875/59224_fb7f0b5af4f97b4a_002full.jpg

Assay results returned intercepts with anomalous levels of copper mineralization in all three holes (see Table 1 below). Drilling in PDH-163 at Pedro Dos Mil intersected 68 metres grading 0.20% copper (from 370 metres depth downhole) and indicates that significant skarn-type mineralization and associated porphyry copper exists 2 kilometres east of the Pinaya Mineral Resource area.

PDH-164, drilled at Cerro Antaña, confirmed the presence of copper in high sulphidation bornite and chalcocite (see Figure 2 below), indicative of hypogene enrichment - a magmatic hydrothermal process that upgrades the copper content of chalcopyrite and is typically associated large porphyry copper deposits.

Chalcopyrite-bearing veins and disseminations intersected by PDH-165 at Viscachani demonstrate the continuation of the Pinaya system 1 kilometre to the south of the Mineral Resource area.

Based on observations of drill core from holes PDH-163, -164 and -165, Kaizen believes that potential exists for a large, unroofed porphyry copper system, which could extend to depth and laterally beyond the bounds of the historic geophysical surveys. Note that none of the three holes drilled in the current program penetrated beyond the Puno Group roof rocks into the underlying porphyry system. Kaizen's majority shareholder, HPX, will now bring its proprietary Typhoon™ geophysical surveying system to Pinaya to map the deep porphyry intrusions.

Figure 2. Puno Group conglomerate with intense advanced argillic alteration. Chalcopyrite in veins replaced by high sulfidation bornite and chalcocite.

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/2875/59224_fb7f0b5af4f97b4a_003full.jpg

Kaizen's 100%-owned Pinaya Copper-Gold Project

The Pinaya Project is located in the Andahuaylas-Yauri Porphyry-Skarn Belt in southeastern Peru. This Eocene-Oligocene aged belt hosts numerous productive copper-gold porphyry and skarn systems, including Las Bambas, Tintaya, Constancia, Haquira, and Antapaccay.

Approximately 46,500 metres of drilling at Pinaya were completed by the previous project operator and largely focused on defining the current Mineral Resource. The Pinaya Mineral Resource¹ comprises Measured and Indicated Resources totalling 41.7 million tonnes grading 0.63% CuEq² (0.32% copper and 0.49 g/t gold) and containing 135,000 tonnes of copper and 656,000 ounces of gold, plus 40.2 Mt of Inferred Resources grading 0.55% CuEq (0.36% copper and 0.30 g/t gold) and containing 145,000 tonnes of copper and 388,000 ounces of gold. Resources consist of skarn and porphyry-style mineralization. Based on the results from the recent drill program, Kaizen believes that the potential for shallow extensions of the current Pinaya Mineral Resource is low.

Historic drilling in the Pinaya Mineral Resource area intersected several significant copper-gold mineralized zones including 84 metres grading 1.11% Cu and 2.11 g/t Au in PDH-039¹ and 103 metres grading 1.21% Cu and 1.28 g/t Au in PDH-060¹.

The Pinaya deposit consists of skarn and porphyry-style mineralization, which has been interpreted to be a shallow apophysis above a larger, unroofed porphyry copper system.

About Kaizen

Kaizen is a Canadian mineral exploration and development company with exploration projects in Peru and Canada. More information on Kaizen is available at www.kaizendiscovery.com

Qualified Person

Kaizen's Chief Operating Officer, Mark Gibson, PrSciNat, is a Qualified Person as defined under NI 43-101 who has reviewed, approved and is responsible for the scientific and technical information presented in this news release.

Kaizen utilizes a comprehensive industry-standard QA/QC program. Drill core is sampled every 2 metres down hole along its length, and post-mineral cover and overburden is excluded from sampling. Sampled core is sawn lengthwise in two halves, and one half is sampled and shipped to an ISO-certified sample preparation laboratory. The other half of the core is stored in a secure facility for future assay verification if required. In the case of "field duplicate" samples, two quarter core samples for the same sample interval are sent for laboratory analysis, and the remaining half is stored in a secured facility. All samples were prepared at SGS SA's laboratory in Arequipa, Peru, and assayed at SGS SA's laboratory in Lima, Peru. SGS operates in accordance with ISO/IEC 17025. Gold is determined by 50 g fire assay with an AAS finish. An initial multi-element suite comprising copper, molybdenum, silver and additional elements is analyzed by four-acid digest with an ICP-ES or ICP-MS finish. Certified reference materials, blanks, and duplicates are inserted into the sample stream to monitor laboratory performance.

Information contact

Evan Young +1-604-689-8765

info@kaizendiscovery.com

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.

Forward-looking statements

This news release includes "forward-looking statements" and "forward-looking information" within the meaning of Canadian securities legislation. All statements included in this news release, other than statements of historical fact, are forward-looking statements including, without limitation, statements with respect to the use of proceeds. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "estimate", "expect", "potential", "target", "budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof.

Forward-looking statements are based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which the Company operates, are inherently subject to significant operational, economic, and competitive uncertainties, risks and contingencies. These include assumptions regarding, among other things: drilling programs and results at Pinaya; use of Typhoon™ geophysical surveys; general business and economic conditions; the availability of additional exploration and mineral project financing; the supply and demand for, inventories of, and the level and volatility of the prices of metals; the timing and receipt of governmental permits and approvals; the timing and receipt of community and landowner approvals; changes in regulations; political factors; the accuracy of the Company's interpretation of drill results; the geology, grade and continuity of the Company's mineral deposits; the availability of equipment, skilled labour and services needed for the exploration and development of mineral properties; and currency fluctuations. There can be no assurance that forward-looking statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include actual exploration results, interpretation of metallurgical characteristics of the mineralization, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, unknown impact related to potential business disruptions stemming from the COVID-19 outbreak, or another infectious illness, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators, including those described under the heading "Risks and Uncertainties" in the Company's most recently filed MD&A. The Company does not undertake to update or revise any forward-looking statements, except in accordance with applicable law.

Table 1. Assay results from recent diamond drilling at Pinaya.

Table 2. Drilling information for PDH-163, -164, -165.

¹ Refer to the National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") technical report titled: "Pinaya Gold-Copper Project Technical Report" with an effective date of April 26, 2016, available under Kaizen's SEDAR profile at www.sedar.com and at http://www.kaizendiscovery.com.

² Copper equivalent ("CuEq") grade estimate based on $2.84/lb copper and $1,236/oz gold.

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