Equity ResearchMining, Exploration | Canadian Small Cap

February 3, 2017

Price Performance - 52 weeks

Market Data (TSXV:CMX)Price (February 3, 2017) $0.3052 Week Range $0.05 - $0.33Market Cap (mm) $24.0Shares Outstanding (basic, mm) 75.5Free Float 68%Average Daily Volume (3 months) 75,000

Total Debt (mm) $0.3Cash & Short-Term Investments (mm) $0.2Total Assets (mm) $6.3

Headquarters Toronto, Ontario, Canada

Executive Management

All figures in CAD unless otherwise stated.Source: Thomson Reuters (2/3/2017)

Chilean Metals Inc.(TSXV:CMX | OTCQB:CMETF | SSE:CMX | MILA:CMX | FRA:IVV1 | BER:IVV1)

Multi- Discovery Copper Gold Company with a Hedge - Drilling Now!

In Brief Chilean Metals Inc. (“CMX”) is a surprisingly attractive Canadian junior with a unique royalty story. They have a solid balance sheet and are exploring for Copper - Gold assets in proven geological terrain. We anxiously watch their journey and drill results in 2017.

Company Chilean Metals is an advanced early stage Canadian junior exploration company with 9 projects in it’s Chilean & Canadian Portfolios. They specialize in exploring for massive Copper - Gold deposits in porphyry and IOCG environments. The Chilean projects are all situated in the proven world class IOCG Belt in Region 3. The Nova Scotia properties are along the Cobequid - Chedabucto Fault Zone, a regional structure highly regarded by Minotaur (Australia).

CMX is unique compared to other Candian Juniors through its ownership of a royalty on the Copaquire Copper project which it sold to Teck for $3,000,000 USD plus a 3% NSR. Teck is currently exploring on the project which has an existing 43-101 resource and is located contiguous to the Quebrada Blanca mine.

Chilean Metals has an active work program for 2017. CMX has initiated a 2500+ meter drill program on it’s premier property “Zulema” in Chile near Candelaria. Many think it’s a Candaleria Style Potential Deposit Opportunity.

In addition, CMX has signed a JV Agreement on its Nova Scotia Priority Property “Bass River”. CMX retains 60% ownership in this property.

With the turning economics of the mining sector and optomistic expectations for the Copper – Gold sectors, CMX is well positioned to take advantage of the cycles upturn to potential massive levels.

Investment Highlights• Geography: The mining sector in Chile is one of the pillars of the Chilean

economy, and copper exports alone comprise more than one third of government income. The Chilean government strongly supports external investment and had modified many of its laws to create a favourable investment climate for foreign companies wishing to do business in Chile.

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Patrick J Cruickshank, MBAPresident & CEO

Terry LynchChairman

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Nova Scotia is a most favourable jurisdiction and is mining friendly with a qualified work force, land access, rail & water to support both exploration and development. The Department of Natural Resources (DNR) is a very supportive mining partner for CMX who have received tremendous support & assistance in their endeavours.

• Assets: The Chilean portfilio comprises of (5) exploration Copper – Gold properties covering over 19,500 Hectares: Zulema, TDO, Palo Negro, Hornitos & Tabaco. The Palo Negro and Hornitos properties comprise over 9,000 hectares covering a 14 km strike length of the Atacama Structural Zone. Future exploration of the Palo Negro and Hornitos properties requires detailed geologic mapping and ground geophysics to refine the exploration targets. Another 30 kms southeast lies the Terra de Oro property, a 5,600-hectare land package underlain by two distinct domains: a Western Domain of intrusive rocks with Au-Cu mineralization, and an Eastern Domain of volcanic strata with Cu-Ag mineralization. CMX’s most advanced asset is the 100% owned Zulema project, which comprises 4,300 hectares of land, has sufficient road access, and is located 30 kms from the mining town of Copiapo and 15 kms from both the Pan-American Highway and Chile’s main northern power

grid. At Zulema, widespread disseminated copper oxides are present at surface, associated with a 1 sq. km skarn zone. Assay samples range from 0.4% to 5.5% Cu and 0.2 to 0.4 g/t Au. The property is now being drilled, located in Chile’s IOCG belt, and is 30 km. west of Lundin Mining Corporation’s (TSX:LUN) Candelaria mine (a producing, open-pit mine with 430Mt of P&P reserve, grades of 0.5% Cu and planned 2016 production of 126k tonnes of copper). Pre-mining reserves at Candelaria were 600Mt @0.95% Cu, 0.22 g/t Au, 3.1 g/t Ag. Early-stage exploration work at Zulema, included IP, magnetic and limited gravity surveys and eight reverse circulation and core drill holes in 2003 and 2004 totaling 2,600 meters.CMX, is now executing a 2,500m of drilling program that started early January and will continue through Q1/2017. The drill program is focused on two very compelling but undrilled targets, each more than one square kilometer in size, located 1.5 and 3 kms north and northeast, respectively, of the area of previous drilling. Chilean Metals is eager to explore the (4) Nova Scotia Copper – Gold properties they acquired earlier this year. The 4 properties are: Fox River, Parrsboro, Lynn and the highly anticipated Bass River. CMX has just signed a Joint Venture Agreement on Bass River with the Optionee

Figure 1: Zulema Project

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agreeing to undertake an extensive drill program before the end of Q2/2017 on a large VTEM anomaly modeled by Minotaur (Australia). CMX is excited to iniate a comprehensive work program in the new year.

• Teck Resources Royalty: Apart from the exploration projects, Chilean Metals also owns a 3% NSR on the Copaquire property, which was sold off to Teck Resources. The Copaquire property lies about 1,450 km north of Santiago, 125 kilometres south-east of the city of Iquique, and is readily accessible via well-maintained all-weather roads. Copaquire boasts two NI 43-101-compliant resources: Sulfato South (dominantly copper) and Cerro Moly (dominantly molybdenum). Copaquire has defined minimum 700M + lbs of Copper with 35M lbs Molybdenum. Teck’s QB1 mine is running out of Ore and has begun to focus on Copaquire.

• Management: The Company is run by its CEO Patrick Cruickshank, a finance professional with 15+ years of experience working in the securities industry, as well as most recently being the CEO of Cogonov Inc., a company engaged in the exploration and development of IOCG projects in Nova Scotia. Mr. Cruickshank is supported by Chairman Terry Lynch, who has had a 25+ year career working in various fields including startups, financial advisory, consulting, and most recently as the CEO of a privately held Nevada-focused

Gary Lohman, B.Sc., P. Geo., Director, Committee Chair• Over 30 years of experience in both precious and base metal exploration within the Americas.

Tony Belperio, B.Sc. (Hons), Ph.D., FAusIMM, Committee Member• Executive Director of Business Development for Minotaur Exploration Limited, Australia.• Played a key role in the exploration program that led to the discovery of the Prominent Hill mine, 130

kilometers northeast of Olympic Dam, South Australia.• Awarded the University of Adelaide’s Tate Memorial Medal, the Geological Society of Australia’s

Stillwell Award in 1993, AMEC’s Prospector of the Year (jointly) in 2003.• Received the Bruce Webb Medal by the South Australian Division of the Geological Society of Australia

in 2010 for his contributions to Earth Science.

Figure 2: CMX’s Chilean Property Map

Relief Gold and TSX-listed Firstgold Corp.

World Class Technical TeamCMX exploration team has had major exploration discoveries to their credit both in Chile and in similar geological settings to Nova Scotia. Dr. Chris Hodgson, the lead geologist on the Zulema project, was the first geologist to identify Santa Domingo a major Chilean Deposit sold for over $700 million dollars. Dr. Tony Belperiro of Minotaur Exploration played a lead role in the discovery of Prominent Hill one of the world’s largest IOCG deposits sold for more than $1.2B.

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Chris Hodgson, Ph.D. P. Eng. (B.C.), Consultant• Served as Vice President of Exploration at International PBX Ventures Ltd until April 6, 2016.• Previous positions included Chief Geologist Amax Exploration, Vice President of Exploration of

Canamax Resources, Exploration Manager Canada Tungsten and Minera Inmet (Chile).• Mr. Hodgson is credited with the early recognition of the Santo Domingo IOCG (iron oxide-copper-gold)

deposit in Chile.

Ian Pirie• Senior mining executive who held various positions including General Manager, Latin America for Inmet

Mining Corporation. • Responsible for the acquisition and development of the Antamina project, Peru.• Responsible for the development of Cobre Las Cruces in Spain and the Cobre Panama project in Panama.

Financial AnalysisBeing an early-stage exploration company, having enough capital to fund exploration activities is critical. Having recently completed a $800k financing, CMX is on schedule to begin drilling at the Zulema project, with results expected in January 2017. Apart from a $150k debt balance, the Company’s balance sheet shows no sign of weakness, supporting a $5.0mm equity balance.

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