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Preparing for the Next Round of Drilling

Initial Resource Estimate Provides Solid Foundation on Which to Grow; Increasing Price Target

Outstanding Huancarama Drill Results; Initial Resource Estimate Expected Shortly

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Chakana Copper Corp.

Preparing for the Next Round of Drilling
 Chakana Copper continues to advance its 3,085-hectare Soledad copper-gold project in the Ancash region of Peru. Recall that Chakana&#8217;s wholly owned indirect subsidiary, Chakana Resources S.A.C., holds: 1) the option to acquire a 100% ownership interest in the Soledad project (Condor Option) and owns a net smelter return (NSR) royalty, 2) an option to acquire a 100% ownership interest in the adjacent Aija project, and 3) holds an option to acquire up to a 100% ownership in other adjacent mineral concessions owned by a subsidiary of Barrick Gold Corporation (NYSE, GOLD, Not rated). All three options, and associated concessions, comprise Soledad.&nbsp;
In January, Chakana released an initial inferred resource estimate for its Soledad project in Peru. The resource estimate encompasses seven breccia pipes that start at surface and extend to an average depth of approximately 300 meters. By our estimate, inferred mineral resources include 191.4 thousand ounces of gold, 11.7 million ounces of silver, and 130.6 million pounds of copper. On a copper equivalent basis, we estimate the open pit and underground host 71.6 million and 197.5 million pounds of inferred copper resources, respectively, based on 1.72% and 1.85% copper equivalents. This is based on 2,204.62 pounds per metric tonne. On a gold equivalent basis, we estimate the open pit and underground host 165,800 and 456,125 ounces of inferred gold resources, respectively. This is based on ~31.1 grams per troy ounce. 
The resources at Soledad are polymetallic and strong silver and gold grades are common near surface with copper grades increasing at depth. The current drilling program down to 300 meters has affirmed an economic opportunity for open pits for near surface resources that could also fund resource development at depth.&nbsp;Given that drilling has confirmed mineralization at greater depth and a total of 110 targets have been identified, the initial resource estimate may just scratch the surface. To date, only 16 out of the 110 targets have been tested
Plans for 2022 and 2023
In 2022, the company will likely conduct a 10,000-meter exploration drilling program to test 20 new targets. Outcomes from exploration drilling will likely determine high priority targets for a future resource drilling program.
In 2023, we expect Chakana to drill test 20 new targets, or 500 meters of drilling on each target, in the southern portion of the project area, conduct a 30,000-meter resource drilling program on new discoveries, and to update its mineral resource estimate. Management also intends to seek an underground exploration permit.
Since the commencement of its exploration program in 2017, Chakana has completed 260 core holes, representing 60,850 meters of drilling. Most of the resource drilling was focused on breccias Bx 1, Bx 5, Paloma East, and the eastern side of the Huancarama breccia complex, with less drilling focused on Bx 6, Bx 7, and Paloma West. Geophysical surveys have identified numerous new targets that are being ranked. Chakana has numerous targets ready to test on the fully permitted north half of the project where the initial resource estimate is located, and additional targets on the south half of the project, including the Companero breccia pipe complex. Drill permitting on the south half of the project area is well-advanced.
Summary of Financial Results for Three Months Ended November 30, 2021
We have updated our estimates to incorporate recently reported financial results for the quarter ended November 30, 2021.&nbsp;As an exploration company, Chakana Copper generates no revenue but incurs significant exploration expenditures to fund its exploration and drilling activities. For the three months ended November 30, 2021, the company reported a loss of C$1,863,900, or C$(0.02) per share, compared with a loss of C$2,000,965, or C$(0.02) per share, during the prior year period. Operating expenses amounted to C$1,889,239 compared to C$2,029,145 during the prior year period. We had forecast a net loss of C$911,146, or C$(0.01) per share. The variance to our estimate was due primarily to higher exploration and evaluation expenses.&nbsp;
From a cash flow perspective, net cash flows used in operating activities amounted to C$1,805,690, while cash flows used in investing activities amounted to C$152,674. Cash and cash equivalents at the end of the period amounted to C$3,338,226.
Capital Expenditures and Liquidity
As of November 30, 2021, the company reported cash and cash equivalents in the amount of C$3,338,226. Lease obligations amounted to C$219,336.

Chakana Copper Corp. (PERU:CA)

Preparing for the Next Round of Drilling

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Coverage Dropped (PERU:CA)

Preparing for the Next Round of Drilling (PERU:CA)

Initial Resource Estimate Provides Solid Foundation on Which to Grow; Increasing Price Target (PERU:CA)

Outstanding Huancarama Drill Results; Initial Resource Estimate Expected Shortly (PERU:CA)

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