Chakana Copper Closes First Tranche of Private Placement Gold Fields Exercises Participation Right

Vancouver, February 10, 2021 - Chakana Copper Corp. (TSXV: PERU) (OTCQB: CHKKF) (FSE: 1ZX) (the "Company" or "Chakana"), is pleased to announce that it has completed the first tranche of a non-brokered private placement of 14,186,000 common shares of the Company at a price of C$0.50 per common share for gross proceeds of C$7,093,000 million (the "Private Placement"). The Company is reserving the right to increase the Private Placement to issue a total of up to 24,000,000 common shares at C$0.50 per share to raise a total of up to C$12 million.

Pursuant to an agreement between the Company and Gold Fields Nazca Holdings Inc. ("Gold Fields"), a wholly owned indirect subsidiary of Gold Fields Limited (see news release dated April 19, 2019), Gold Fields has exercised its participation right and is also increasing its pro rata ownership interest to 19.99% of the outstanding common shares of Chakana from its current position of 16.80% of the outstanding common shares. Based on the first tranche closing, Gold Fields' current participation is 5,810,000 new shares for total proceeds of C$2,905,000.

David Kelley, President and CEO commented: "We are excited to close the first tranche as we ramp up the exploration on the Soledad project. Having Gold Fields participate and increase their equity position to 19.99% is a great endorsement for the project. Combined with our current cash on hand, we now have $3.9m to cover the aggressive 26,000m drill program this year to test numerous additional targets and to publish a maiden resource on several of the breccia pipes. A second drill rig will arrive on the property later this week to initiate the in-fill drilling program on the recent discoveries announced at Paloma East and Paloma West. Scout drilling continues at Huancarama with the other drill rig where twenty-two holes have been completed to date. Resource drilling will start at Huancarama once the scout drilling is completed."

The Company intends to use the net proceeds of the Private Placement for the accelerated exploration and development of the Company's high-grade copper-gold-silver Soledad Project located in the Ancash region of Peru and for general working capital and administrative purposes. Since restarting its 15,000m Phase 3 drill program on August 15, 2020, the Company has announced three new discoveries at Paloma East (news releases - September 17, 2020, and October 26, 2020), Paloma West (news releases - November 10, 2020, November 18, 2020, December 3, 2020, and December 16, 2020), and at the Huancarama Breccia Complex where drilling is ongoing (news releases - January 12, 2021, January 25, 2021, and February 9, 2021).

The Company paid a finder's fee of C$112,980 on some portion of the gross proceeds of the Private Placement to certain arms-length parties who assisted the Company in introducing subscribers to the Private Placement.

All securities issued under the Offering will be subject to a four-month hold period expiring on June 10, 2021 in accordance with applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws in jurisdictions outside of Canada. Final closing of this Offering is subject to final acceptance by the TSX Venture Exchange.

About Chakana Copper

Chakana Copper Corp. is a Canadian-based minerals exploration company that is currently advancing the high-grade copper-gold-silver Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of mineralization hosted in tourmaline breccia pipes. A total of 36,965 metres of drilling has been completed to-date, testing ten (10) of twenty-three (23) confirmed breccia pipes with more than 92 total targets. 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.

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.

The common shares have 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 registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to buy such securities in any jurisdiction in which such an offer or sale would be unlawful.

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.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/74149