PA.V · 2020-07-07 12:00:00

At the Coasa GOLD Project

Corporate Updates

PALAMINA

SAMPLES

3.2 METRES

g/t GOLD

AT THE COASA GOLD PROJECT

FOR IMMEDIATE RELEASE

Toronto

–

July

, 2020

Palamina Corp.

(PA:TSX

reports

further

significant

channel sampling results from its Coasa

Gold

Project in south eastern Peru

. In

mid

December 2019

Palamina completed

comprehensive channel

sampling program

the

newly discovered

yos

one designed to better define

mineralized

structure

and

expand known

mineralization.

The

Cayos

Zone

is lo

cated

south

west

of the Veta Zone

the Company’s first

proposed

drilling

target in the Coasa Gold Project

These samples were

due to be submitted in

mid

January

but

delayed until June of 2020 due to the Covid 19 shut down.

“Palamina’s

newly discovered Cayos Zone at the

Coasa

Gold Project

continues to deliver substantive gold

values at surface

” said President

Andrew Thomson

“Palamina’s

country

Peruvian geological team will

resume exploration in July

following Covid

19 guidance. The

ocus will be on expanding our understanding

of the known

vein hosting

structur

slated for drilling

in the

Veta

Zone

and new expansion work at surface

in the

Cayos

Zone

.”

To date

524 samples

have been collected

in the Cayos Zone

Of the 239 channel samples collected during

the most recent exploration phase in the Cayos zone,

76 were over intervals of 1.0 m to 1.2 m in length

and

returned the following

Selected Sample Highlights

–

Cayos Zone

–

Coasa

Project 2020

Sample ID

Sample Interval

Assay g/t Au

005179

1.20

23.11

005210

1.00

15.51

005114

1.00

11.14

005185

1.00

9.17

005137

1.00

8.29

005140

1.00

6.11

005142

1.00

5.13

005196

1.00

4.91

005176

1.00

4.15

005141

1.00

3.89

005138

1.00

3.30

005177

1.00

3.27

005184

1.00

3.14

Select v

alues in table are for recent sampling returning > 3.0 g/t Au

over their

reporte

interval.

omposite

channel sample

ranging

from 2.0 m to 19.0 m in length

intervals

with values

> 0.40 g/t Au

are

presented

in the table below:

Selected Channel Sample Results

–

Cayos Zone

–

Coasa Project 2020

CHANNEL

SAMPLE

SAMPLE INTERVAL

ASSAY

INCLUDING

INTERVAL

ID*

Length (m)

Au g/t

Length (m)

Au g/t

7.7

2.36

1.0

15.2

3.5

0.70

5.3

5.46

1.0

27.3

6.45

3.04

1.2

12.9

10.7

1.35

1.0

4.70

5.8

3.44

1.0

18.1

7.1

2.89

1.0

15.9

6.6

1.57

1.0

5.20

3.2

12.0

1.2

30.9

2.0

1.28

1.0

2.50

2.2

1.22

1.2

2.21

2.4

0.40

5.2

0.42

1.0

1.67

2.0

1.79

1.0

3.51

2.1

2.11

1.1

4.01

3.8

0.37

3.0

3.91

1.0

11.3

3.2

0.82

1.0

2.49

4.4

0.87

1.3

2.68

2.2

2.92

1,1

4.80

2.0

3.35

1.0

6.45

2.0

11.8

1.0

23.2

2.0

0.39

2.0

1.83

1.0

3.44

Values

in table

are for composite channel

samples returning

> 0.4 g/t Au over

their

reported interval. 20

composite

channels report

average

values of < 0.4 g/t Au

At Cayos

composite channel sampling has

defined

7 mineralized trends ranging from 100 m to 200 in length

within a 300 m x 500 m area

(See Figure 1

showing location of select highlighted red values above

)

The

Cayos Zone is underlain by fine grained sediments; organic

rich black shales and slates of the Ananea

Formation with a general strike of 095°

and

a 65° southerly dip. The sedimentary sequence is intruded by

small (0.05 m

–

1.0 m) metamorphosed sills an

d dikes. Litholog

ical

, structur

and mineralization

characteristics

at Coasa are similar to those identified at the Ollachea Gold project, located 60 km to the

northwest.

Gold m

ineralized structures composed of weak to moderately sheared slates hosting vein

veinlet sets of 1.0

m to 1.5 m thickness have two predominant orientations: 155/70 SW

structures represent early gold

mineralization

and

later

130/70 SW

structures

. The latter

crosscutting vein event is strongly anomalous in

arsenic (arsenopyrite) and is interpreted

remobiliz

ing event

Geochemical

analyses show a poor

association between gold and other pathfinder elements such as arsenic

antimony and silver. Further study

these elements may

help

determin

depth of

emplacement of

mineralization

across

the Coasa Property

particularly in the Cayos and Veta zones.

Palamina has completed

airborne geophysics, prospecting, geological mapping and rock and channel

sampling to date.

Further mapping

channel sampling and a

ground

magnetic survey at the Veta and Cayos

Zones

are

anticipated prior to drilling in order to refine targets.

Palamina is

awaiting its drill permit for the

Veta Zone after which a modification allotting drill pads to the Cayos Zone will be submitted.

In May of 2020

Peru stated it is prioritizing advancing gold projects and introducing reforms to allow

exploration companies to advance

projects

more e

fficiently

In June,

Palamina has resumed

its

drill

permitting process for the Coasa gold project which was suspended du

e to COVID

19 restrictions imposed

by Peruvian authorities.

Technical Information

Channel samples are taken from exposed outcrops and cut to capture the best available angle to the

orientation of the sampled structure. Samples collected in the field are

transported by Palamina personnel

to the Certimin S.A laboratory in Juliaca, Peru. Samples are processed by Certimin S.A in Juliaca and

prepared sample splits are transported

for

assay

to the

CERTIMIN SA Laboratory in Lima, Peru. Samples

are assayed for gold using a 30

gram fire assay charge with an AA finish. Samples are also

analysed using

multi

element ICP

OES package. Prior to delivery of field exploration samples to the laboratory

Pala

mina staff insert coarse blank samples, field duplicates and certified

gold analytical

standards into the

sample stream

to provide

controls over the quality

sampling and analytical procedure

No standards are

inserted for the multi

element suite.

All

samples are returned to the Company and stored at a secure facility

in Juliaca.

This press release was compiled and reviewed by Mr. William McGuinty, P. Geo., Palamina’s VP

Exploration.

He is a Qualified Person as defined by National Instrument 43

101 an

d has supervised the

preparation of the technical contents of this press release.

About Palamina Corp

Palamina has first mover advantage on

district scale titled gold projects

in south eastern

Peru in

the Puno

Orogenic Gold Belt

(POGB)

The Company also has rights to a

silver

copper project in the Santa Lucia

district and two copper

gold projects in Southern Peru. In September of 2019, Palamina concluded the sale

of the Gaban gold and Tinka I.O.C.G Projects for 10,000,000 shares of Winshe

ar Gold Corp. (formerly

Helio Resource Corp.) and a 2% NSR per project. Palamina has 45,134,836 shares outstanding and trades

on the TSX Venture Exchange under the symbol PA

FOR FURTHER INFORMATION PLEASE CONTACT:

Andrew Thomson, President

Phone: (416) 987

0722 or visit

www.palamina.com

This news release contains certain “forward

looking statements” within the meaning of such statements

under applicable securities law. Forward

looking statements are

frequently characterized by words such

as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”,

“will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions

“may” or “will

” occur. These statements are only predictions. Various assumptions were used in drawing

the conclusions or making the projections contained in the forward

looking statements throughout this

news release. Forward

looking statements are based on the opinion

s and estimates of management at the

date the statements are made, and are subject to a variety of risks and uncertainties and other factors that

could cause actual events or results to differ materially from those projected in the forward

looking

statemen

ts. The Company is under no obligation, and expressly disclaims any intention or obligation, to

update or revise any forward

looking statements, whether as a result of new information, future events or

otherwise, except as expressly required by applicable

law. A more complete discussion of the risks and

uncertainties facing the Company appears in the Company’s continuous disclosure filings, which are

available

er the company’s profile at www.SEDAR.com and on the Palamina webpage.

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.

Figure 1: Select Composite Channel Samples in the Cayos Zone

released July 7, 2020

–

Coasa Gold Project

Figure 2: Coasa Project Sample Distribution (recently released assay

highlighted in yellow

)

Top ten select channel and rock samples for the Veta and Cayos Zones July 7, 2020

← Back to feed