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PA.V ·

Drilling Underway at Palamina’S Usicayos GOLD Project IN PERU

Drill Results

DRILLING UNDERWAY AT PALAMINA’S USICAYOS GOLD PROJECT IN PERU

FOR IMMEDIATE RELEASE

Toronto

–

September 30

, 2021

Palamina Corp.

(PA:TSX.V)

has

commenced its inaugural diamond

drill program at its

f

lagship

Usicayos

G

old Project

in Peru

.

No drill holes have ever been completed at

Usicayos

.

Palamina contracted Energold Drilling Peru S.A.C. for the program.

Drilling

at

Usicayos

will consist of

roughly

2,600

metres of drilling

in six drill holes

with the objective of

testing

multiple

mineral

ized gold

structures defined at surface in the Veta Zone. To date surface

sampling

has defined an 800

m by 200

m

area with values from chip sampling returning values up to 620 g/t Au and channel sampling up to 123 g/t

over

1

m.

Drill holes will test to

a maxim

u

m

vertical depth of 400

metres.

In August and September Palamina entered into discussions to support the Usicayos community with

certain initiatives. On September 17, 2021 an agreement was reached with the community to support local

artisans and

provide assistance with certain road improvements.

“

Palamina’s diamond

drill program

is

underway

to test

mineral

i

zed gold structures

outlined

in the Veta

discovery zone at our 100% owned Usicayos Gold Project

. As Peru emerges from the Covid

-

19 Pandemic,

Palamina is

diligently working towards bearing out the value of

its

significant

property

holdings

in the Puno

Orogenic Gold Belt

with

a second gold project being readied for drilling by its equity partner Winshear

Gold Corp.

Palamina

and Winshear are both

entering the drill discovery phase

where both have

defined

gold structures over 2

km

in strike len

gth

which host

significant gold mineralization at surface.

”

commented

An

drew Thomson, President of Palamina. “

We are

also working closely with Gold

S

pot

Discoveries to

enhance geological decision making through the

application of

data driven science,

artificial intelligence

and machine learning.

”

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DRILL PAD

VE

-

01

-

2021

Technical Information

Palamina drill core

samples

will be collected and logged in the field by Palamina staf

f and subsequently

transported to Palamina

’s

base of operations in Juliaca for cutting.

One half of sawn core from sample

intervals will be

collected

and

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 50

-

gram fire assay

charge with an AA finish. Samples are also an

alysed using a multi

-

element ICP

-

OES package. Prior to

delivery of field exploration samples to the laboratory, Palamina staff insert coarse blank samples, field

duplicates and certified gold analytical standards into the sample stream to provide controls

over the quality

of sampling and analytical procedures. 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 M

cGuinty, P. Geo., Palamina’s VP

Exploration. He is a Qualified Person as defined by National

I

nstrument 43

-

101 and has supervised the

preparation of the technical contents of this press release.

About Palamina Corp.

Palamina

has acquired

4 district scal

e gold projects

through staking

in the Puno Orogenic Gold Belt (POGB

)

in south eastern Peru

. Palamina is drill

ing at

its flagship

Usicayos

Gold Project

in the POGB

.

Palamina

holds an

19.5

% equity interest in Winshear

Gold Corp. who are advancing the

ir

Gaban Gold Project

in the

POGB

to the drill discovery phase

.

The Company also has rights to a silver

-

copper project in the Santa

Lucia district and two copper

-

gold projects in Southern Peru. Palamina has 65,284,836 share

s outstanding

and trades on the TSX Venture Exchange under the symbol PA

.

FOR FURTHER INFORMATION PLEASE CONTACT:

Andrew Thomson, President

Phone: (416)

204

-

7536

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”, “estima

te”, “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 projec

tions contained in the forward

-

looking statements throughout this

news release. Forward

-

looking statements are based on the opinions and estimates of management at the

date the statements are made, and are subject to a variety of risks and uncertainties an

d other factors that

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

-

looking

statements. 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 disclos

ure filings, which are

available under 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.