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PA.V ·

Palamina Announces $2 Million Private Placement

Financings

Palamina Announces $2 Million Private Placement

Toronto, Ontario--(Newsfile Corp. - February 1, 2018) - Palamina Corp. (TSXV: PA) ("

Palamina

" or the "

Company

") is pleased

to announce that it will conduct a non-brokered private placement offering (the "

Offering

") of up to 6,666,667 units ("

Units

") at a

purchase price of $0.30 per Unit, for aggregate gross proceeds of up to $2,000,000.

Each Unit consists of one common share ("

Common Share

") and one warrant (a "

Warrant

").

Each Warrant is exercisable to

acquire one Common Share at a price of $0.50 for a period of 18 months from the closing date, provided that if after four months

and one day following the closing of the Offering, the closing price of the Common Shares on the TSX Venture Exchange ("

TSX-

V

") is equal to or greater than $0.90 for 10 consecutive trading days, then the Company may accelerate the expiry date of the

Warrants by disseminating a press release, and in such case the Warrants will expire on the 45

th

day after the date on which

such press release is disseminated.

Net proceeds of the Offering will be used for general corporate and working capital purposes. The Offering is subject to TSX

Venture Exchange acceptance of regulatory filings. The securities being offered have not been, nor will they be, registered

under the United States

Securities Act of 1933

, as amended, and may not be offered or sold in the United States or to, or for the

account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news

release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any

jurisdiction in which such offer, solicitation or sale would be unlawful.

About Palamina Corp.

Palamina is directed by a group of proven mine finders focused on securing mining assets in the America's with the potential to

host significant gold deposits. Palamina has acquired the application rights to six areas in the Puno gold belt and one project in

the coastal I.O.C.G. belt in Southern Peru and holds 100% interest in one exploration project in Mexico. Palamina has

22,574,713 shares 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

"

,

"

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 include, but are not limited to, the successful

completion of the

Offering and the use of proceeds of the Offering and the Company's future business plans. 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 and 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 disclosure filings, which are available at

www.sedar.com

.

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 adequac

y or accuracy of this release.

*

Not for distribution to U.S. news wire services or dis

semination in the United States

*