Chakana Copper : November 30, 2021 Q2 MD&A

CHAKANA COPPER CORP.

MANAGEMENT DISCUSSION & ANALYSIS

FOR THE SIX MONTHS ENDED NOVEMBER 30, 2021

(EXPRESSED IN CANADIAN DOLLARS)

CHAKANA COPPER CORP.

FOR THE SIX MONTHS ENDED NOVEMBER 30, 2021 (EXPRESSED IN CANADIAN DOLLARS)

GENERAL

This Management Discussion and Analysis ("MD&A") of Chakana Copper Corp. (the "Corporation" or "Chakana") dated January 27, 2022, provides an analysis of the Corporation's financial results for the six months ended November 30, 2021. The following information should be read in conjunction with the accompanying unaudited condensed interim consolidated financial statements for the six months ended November 30, 2021 with accompanying notes, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") and International Accounting Standard 34 Interim Financial Reporting, as issued by the International Accounting Standards Board.

All dollar figures are expressed in Canadian dollars, unless otherwise stated. The Corporation's condensed interim consolidated financial statements and MD&A are available on www.sedar.com.

CORPORATION OVERVIEW

Chakana Copper Corp. was incorporated on May 2, 2011, under the laws of the province of British Columbia, Canada. The Corporation is a mineral exploration corporation listed on the TSX Venture Exchange ("TSX-V") under the symbol "PERU". The Corporation is currently engaged in the exploration and development of mineral properties, with prospects for copper, gold and silver in Peru.

The head office and principal address is 800 West Pender Street, Suite 1430, Vancouver, British Columbia, V6C 2V6, Canada. The records office of the Corporation is located at 1055 West Pender Street, Suite 1500, Vancouver, British Columbia, V6E 4V7, Canada.

The Corporation is currently advancing the Soledad Project near Aija in the Ancash region of the highly prolific Miocene mineral belt of Peru. The Corporation's goal is to find and advance mineral projects to an economic resource within a single commodity cycle for further development by mid-tier and/or major mining companies. The Corporation looks for de-risked projects that have the characteristics of large above average grade mineral systems with significant upside potential. The Corporation employs the latest technological innovations to test the upside potential of projects with aggressively funded exploration programs.

GENERAL OVERVIEW OF MARKET CONDITIONS

During the period May 31, 2021 through to the date of this MD&A, copper prices have fluctuated between a low of US $4.14 per pound and a high of US $4.75 per pound, closing at US $4.40 per pound. During the same period, gold and silver prices started to appreciate, with gold trading between US $1,718 per ounce and US $1,907 per ounce, closing at US $1,840 per ounce, and silver trading between US $21 per ounce and US $27 per ounce, closing at US $24.47 per ounce.

Since the second half of 2019, base metal prices have increased significantly. However, as a result of the global pandemic caused by COVID-19, many governments have mandated lockdowns affecting the ability of companies to continue with normal operations and as a result, junior companies have experienced volatile share prices over this period. During 2020 and 2021 a new wave of COVID-19 related to the Delta and Omicron variants have also created pressure in the global markets including the resource sector. In addition to the global pandemic, the political situation in Peru has caused uncertainty for the mining industry. In management's opinion, these factors were the primary drivers for a decline in the Corporation's share price.

The outbreak of COVID-19 and political upheavals in various countries have caused significant volatility in commodity prices. Similarly, any future emergence and spread of pathogens could also have an adverse impact on global economic conditions, which may adversely impact the Corporation's operations, and the operations of its suppliers, contractors and service providers, the ability to obtain financing and maintain necessary liquidity, and the ability to explore the Corporation's properties. While these effects are expected to be temporary, the duration of the business disruptions internationally and related financial impact cannot be reasonably estimated at this time. Similarly, the Corporation cannot estimate whether or to what extent this outbreak and the potential financial impact may extend to countries outside of those currently impacted. Travel bans and other government restrictions may also adversely impact the Corporation's operations and the ability of the Corporation to advance its projects. In particular, if any employees or consultants of the Corporation become infected with coronavirus or similar pathogens and/or the Corporation is unable to source necessary consumables or supplies, due to government restrictions or otherwise, it could have a material negative impact on the Corporation's operations and prospects, including the complete shutdown of one or more of its exploration programs. The situation is dynamic and changing day-to-day. As a result of these uncertainties, the Corporation implemented work protocols for its employees and contractors incorporating COVID-19 prevention measures, such as installation of a stand-alone camp on the project, individual dormitory accommodations, improved

MANAGEMENT DISCUSSION AND ANALYSIS

Page 2 of 15

CHAKANA COPPER CORP.

FOR THE SIX MONTHS ENDED NOVEMBER 30, 2021 (EXPRESSED IN CANADIAN DOLLARS)

hygiene measures, use of masks and gloves, and mandatory social distancing. These measures have allowed the Corporation to continue operations, including its drilling program.

In Peru, the presidential runoff election on June 6, 2021 resulted in Pedro Castillo, a member of the left-wing Peru Libre party, securing majority votes. Castillo was inaugurated as President on July 28, 2021. While there is uncertainty regarding the economic and social policies that may be implemented in the future, Castillo came into power with a very narrow margin of victory, which may make most of his election promises difficult to uphold.

Peru is the world's second largest copper producer, with large gold, silver and zinc reserves. Mining is one of Peru's most significant industries. Peru has some US$56 billion of open mining investments, primarily in copper, and is home to mines owned by large foreign companies. Victor Gobitz, president of the Peruvian Institute of Mining Engineers, stated that if the government properly approaches an open dialogue with the mining industry and properly defines the way to develop the country's sustainability, it could create a perfect environment to develop its copper products. However, despite the apparent positivity of talks, uncertainty remains in the industry and higher taxes is one of the main concerns.

HIGHLIGHTS

Exploration developments

• On July 27, 2021, the Corporation reported results from nine resources definition and exploration holes totaling 1,993.15 metres from the Soledad Project. Three holes were drilled through the Huancarama East breccia pipe. All holes intersected mineralized breccia with depths ranging between 70 metres and 200 metres below surface. In Paloma West three holes were drilled to further define mineralization from surface to a depth of approximately 100 metres depth. The breccia pipe demonstrates zoning with stronger gold and silver grades near surface and increasing copper grades with depth.
• On September 7, 2021, the Corporation reported significant intercepts at Breccia Pipe (or "BX") 1, including 46 metres of 5.64% copper 592.9 g/t silver and 0.36 g/t gold. At its Soledad Project, the Corporation has completed to date resourced definition holes at BX 1; being 62 drill holes totaling 19,936 metres and a total of 259 diamond core holes for total of 60,225 metres.
• On October 12, 2021, the Corporation reported results from five additional exploration holes drilled in BX 7 totaling 792.75 metres at its Soledad Project. Results showed BX 7 has stronger precious metal grades than copper at the depths drilled so far. BX 7 is an excellent exploration target that requires additional drilling to constrain its shape and depth extents before initiating resource definition drilling.
• On October 14, 2021, the Corporation reported results from 14 resources definition holes drilled in BX 5 totaling 2,052.75 metres at its Soledad Project. Results for BX 5 are outstanding and improve our understanding of the mineralization hosted in this breccia pipe. Grades are stronger at depth as seen in the deeper holes in this release, and mineralization remains open.
• On November 1, 2021, the Corporation reported results from 12 resource definition holes drilled in Huancarama totaling 2,974.85 metres at its Soledad Project. Drill holes were drilled from four different platforms and were designed to confirm the geometry and continuity of mineralization within the breccia pipe. All holes intersected significant mineralization.
• On November 18, 2021, the Corporation reported results from the remaining 12 resource definition holes drilled in BX 5 totaling 2,541 metres at the Soledad Project. These drill holes were designed to confirm shallow mineralization in the top southeastern quadrant of the breccia pipe, as well as deeper extents of mineralization probed by two holes drilled to the north from a platform located 100 metres south of the breccia pipe. All holes intersected significant mineralization
  .
• On January 4, 2022, the Corporation reported results from 13 additional resource definitions and exploration holes drilled in Huancarama totaling 3,265 metres at the Soledad Project. Drill holes described in this release were drilled from three different platforms and were designed to confirm the geometry and continuity of mineralization within the breccia pipe. All resource definition holes intersected significant mineralization. In addition to the high copper, gold and silver grades reported in these drill holes, three of the holes also intersected very strong molybdenum mineralization at depths of around 350 metres below surface.

MANAGEMENT DISCUSSION AND ANALYSIS

Page 3 of 15

CHAKANA COPPER CORP.

FOR THE SIX MONTHS ENDED NOVEMBER 30, 2021 (EXPRESSED IN CANADIAN DOLLARS)

• On January 11, 2022 the Corporation provided an initial inferred resource estimate for the Soledad project with the following highlights:
  o Inferred Resources were estimated for seven breccia pipes that start at surface and extend to an average depth of approximately 300 metres; all zones remain open at depth
  o Inferred Resources of 4.8 million tonnes grading 0.72 g/t gold, 61 g/t silver and 0.97% copper assumed to be extractable by underground mining methods
  o Inferred Resources of 1.9 million tonnes grading 1.29 g/t gold, 37.1 g/t silver and 0.65% copper assumed to be extractable by open pit mining methods
  o Opportunities for increasing the Inferred Resources include drill testing numerous additional breccia pipes identified on the property and extending the known mineralized zones at depth fromthe current Inferred Resources
  o 16 out of 110 (15%) current targets have been tested to date, seven of which are included in the initial Inferred Resource estimate; several of the tested targets not included in the initial Inferred Resource estimate are mineralized and require additional exploration drilling

Please refer to news releases on www.sedar.comand the Corporation's website at www.chakanacopper.comfor the Corporation's drilling results details.

Corporate matters

• In October 2021, the Corporation amended the July 11, 2018 agreement with Minera Barrick Misquichilca S.A. ("Barrick") regarding three concessions owned by Barrick that make up a large portion of the southern half of the Soledad Project. Under the amendment, Chakana must obtain the Authorization to Initiate Activities ("AIA") for exploration drilling on or before September 27, 2023. Then the Corporation has four years from the AIA to complete a minimum 4,000 metres of drilling and a National Instrument 43-101-compliant Preliminary Economic Assessment.

EXPLORATION AND EVALUATION EXPENDITURES

The Corporation is engaged in investigation, evaluation, exploration and development of mineralized precious and base metal properties and related activities in Peru. The Corporation's wholly owned indirect subsidiary, Chakana Resources S.A.C., holds: (i) the option to acquire a 100% ownership interest in the Soledad Project ("Condor Option") and owns a net smelter return royalty ("NSR") on the Soledad Project; (ii) holds an option to acquire a 100% ownership interest in the adjacent Aija Project ("Aija Project"); and (iii) holds an option to acquire up to a 100% ownership in other adjacent mineral concessions owned by Barrick (the "Barrick Option") subject to certain "back-in" rights. All three options are collectively referred to as the "Soledad Project." The Corporation is the operator of all related mineral exploration activities on these projects.

Acquisition costs of the Soledad Project are as follows:

		Condor Option		Aija Project		Total
Balance - May 31, 2020	$	2,095,863	$	466,774	$	2,562,637
Acquisition costs		330,034		237,912		567,946
Foreign exchange on translation		(238,601)		(101,142)		(339,743)
Balance - May 31, 2021		2,187,296		603,544		2,790,840
Acquisition costs		243,510		123,493		367,003
Foreign exchange on translation		(2,767)		(588)		(3,355)
Balance - November 30, 2021	$	2,428,039	$	726,449	$	3,154,488

MANAGEMENT DISCUSSION AND ANALYSIS

Page 4 of 15

CHAKANA COPPER CORP.

FOR THE SIX MONTHS ENDED NOVEMBER 30, 2021 (EXPRESSED IN CANADIAN DOLLARS)

During the six months ended November 30, 2021 and 2020, the Corporation incurred exploration and evaluation expenditures as follows:

		Three Months		Three Months		Six Months		Six Months
		Ended		Ended		Ended		Ended
		November 30,		November 30,		November 30,		November 30,
		2021		2020		2021		2020
Drilling	$	64,058	$	713,871	$	1,397,210	$	713,871
Exploration support and
administration		405,520		298,638		765,002		584,264
Field operations and consumables		381,106		190,369		647,402		276,756
Geological consultants		189,547		48,907		309,995		89,007
Sampling and geological costs		153,601		124,358		384,507		124,358
Transportation		61,664		45,677		110,563		69,222
	$	1,255,496	$	1,421,820	$	3,614,679	$	1,857,478

SUMMARY OF QUARTERLY RESULTS

Key financial information for the three months ended November 30, 2021, as well as the most recently preceding seven quarters is summarized as follows:

						November 30,				August 31,			May 31,					February 28,
						2021				2021			2021					2021
Current Assets	$	3,515,573		$	5,734,497	$	8,904,769		$	9,642,901
Current Liabilities	$	649,829		$	1,099,322	$	1,288,798		$	790,059
Total Assets	$	8,081,032		$	9,908,339	$	13,191,670		$	13,559,092
Total Liabilities	$	824,629		$	1,278,433	$	1,483,230		$	790,059
Operating Expenses	$	(1,889,239)		$	(3,020,958)	$	(2,940,351)		$	(2,016,903)
Net Loss	$	(1,863,900)		$	(3,433,248)	$	(3,162,022)		$	(2,074,339)
Loss per Share	$	(0.01)		$	(0.03)	$	(0.03)		$	(0.02)

					November 30,				August 31,			May 31,				February 29,
					2020				2020			2020				2020
Current Assets	$	4,716,496		$	6,420,439		$	6,815,408	$	7,612,318
Current Liabilities	$	605,452		$	272,452		$	339,068	$	353,615
Total Assets	$	8,340,893		$	9,822,906		$	10,794,843	$	11,484,646
Total Liabilities	$	605,452		$	272,452		$	339,068	$	353,615
Operating Expenses	$	(2,029,145)	$	(1,409,750)		$	(829,646)	$	(952,239)
Net Loss	$	(2,000,965)	$	(1,275,370)		$	(796,550)	$	(1,198,970)
Loss per Share	$	(0.02)	$	(0.01)		$	(0.01)	$	(0.01)

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2021

Total operating expenses for three months ended November 30, 2021 were $1,889,239 (2020 - $2,029,145). The significant expenditures for the current quarter were as follows:

• Exploration and evaluation expenditures were $1,255,496 during the three months ended November 30, 2021 (2020 - $1,421,820), inclusive of drilling expenses of $64,058 (2020 - $713,871). Decreased drilling expenses were a result of the Corporation concluding its drill program for the year.
• Exploration support and administration of $405,520 (2020 - $298,638), field expenses of $381,106 (2020 - $190,369), geological consulting fees of $189,547 (2020 - $48,907), sampling and geological costs of $153,601 (2020 - $124,358) and transportation expenses of $61,664 (2020 - $45,677). The increase in these expenditures is due to the Corporation working on the results of the drill program.

MANAGEMENT DISCUSSION AND ANALYSIS

Page 5 of 15