Palamina Completes the Sale of TWO Peruvian Projects to Helio Resource Corp.

FOR IMM

Toronto, O

Palamina

previously

HRC:TSX

Gold and

common

project.

5,000,000

two years

approval.

Helio will

anniversar

Helio has

of the Tr a

addition,

nominate

Andrew T

Helio wit

build valu

are both l

Palamina’

applicatio

Helio Re s

exploratio

Licences w

by the Tan

the groun

after con s

ground pr

Helio’s G

Gaban go

The town

Maldonad

town of S

river whic

gold from

Cori gold

Project co

Helio’s T

rights and

300 km so

PALAMIN

MEDIATE RE

Ontario - Sep

Corp. (the “C

y announce d

X.V), whereb

Tinka I.O.C.G

shares of H e

Helio retain s

0 Helio Shares

s of closing o

l make an Ad

ries of closi n

either compl

ansaction, P a

Palamina wi

a second dire

Thomson, Pre

h the sale o f

ue in both C o

located in th e

’s equity po s

on mining righ

source Corp.

on and devel

within the SM

nzanian gove

nd covered b y

sultation wit h

reviously held

Gaban Gold P

old project co v

sits at a 550

do airport. Th

San Gaban. G

ch drains int o

m the Yanama

project in 20

ontiguous and

Tinka Iron O x

d is located a t

outheast from

NA COMPL

T

ELEASE:

ptember 19, 20

Company” o

d transactio n

y the Comp a

G. Projects in

elio (“ Helio

s the right t o

s have been is

on completion

dvance Royalt

ng of the Tra n

leted a total o

alamina has a

ll have the r

ector to stand

esident of Pala

two of its p r

ompanies thro

e Puno orog e

sition in Hel i

hts to the SM

is a Vanco u

opment of t h

MP gold proje

ernment result

y the Retenti o

h the Tanza n

d under Reten

roject covers

vers the tow n

metre elevat

he San Gaban

Gaban was acq

o the Madre

ayo river. Pala

018. Palamina

d south west o

xide Copper-G

t less than 2,

m Lima along

LETES THE

TO HELIO R

019

or “Palamina

n (the “ Tr

any has sold

n Peru to Heli

Shares”) an d

o buy back 1

ssued to the C

n of future e q

ty Payment (A

nsaction. T h

of 5,000m of

agreed to act

ight to place

for election a

amina stated,

rojects and w

ough discove

enic gold bel t

io also provi d

P orogenic go

uver based j u

he SMP oro g

ect area until

ted in the Ret

on Licences w

nian govern m

ntion Licences

18,700 hecta

n of San Gab

ion and is a 4

hydro-electri

quired to loca

de Dios basi

amina compl

a retained the

of Helio’s Gab

Gold (I.O.C.G

000 m eleva t

the Pan-Ame

SALE OF T

RESOURCE

a”) (PA:TSX.

ransaction”)

100% of the

io. In exchang

d a 2% Net

1% of the N S

Company as o

quity financin

ARP) of CDN

he ARP will d

drilling or ha

as the opera t

one directo r

at the next ann

“Palamina ha

will act as the

ery. Palamin a

t which has s

des Palamin a

old project in

unior gold c o

genic gold p r

June of 2017

tention Licens

was transferre

ment, re-appli

s.

ares made up

an and hosts

4 hours drive

ic dam has a 2

ate the hard r o

n. Over 10 s

eted a heli-bo

application m

ban Gold Proj

G.) Project c o

tion 45 km s o

erican highwa

TWO PERUV

E CORP.

V) is please d

with Heli o

application a

ge Palamina w

Smelter Re t

SR for $1,0 0

of today, with

ngs by Helio o

N$25,000 to P

double every

as abandoned

tor of the t w

r on the boa r

nual general m

as established

operator as p

a’s Coasa an

seen little sy s

a shareholde r

Tanzania.”

ompany who

roject in Ta n

when change

se classificati

ed to the Ta n

ed for Pros p

p of titled gro

excellent inf

by the Trans

206 MW cap

ock source of

sets of alluvi a

orne geophys

mining rights

oject.

overs 1,800 h

outheast of I c

ay.

VIAN PROJE

d to announc e

o Resource

and mining r i

will receive a

turn Royalty

00,000 per p r

h the balance

or by way o f

Palamina on t

y two years u

the propertie

wo projects f o

rd of directo r

meeting of H

d a significant

part of a col l

nd Helio’s Ga

stematic expl

rs with parti c

se primary f

nzania. Heli o

es to the Min

ion being abo

nzanian gover

pecting Lice n

und and app l

frastructure fo

s-oceanic high

pacity and pro

f alluvial gold

al miners are

sical survey o

to the 18,500

hectares made

ca, capital of

ECTS

e the closing

Corp. (“ H

ights to the G

a total of 10 m

(“NSR”) o n

roject. A t o

to be issued w

f Helio share h

the first and se

until such ti m

es. Under the

or the first y e

rs of Helio a

Helio.

t equity posit

laborative eff

aban Gold P r

oration or dr

cipation in H

focus has be e

o held 4 Ret e

ing Act annou

olished. As a r

rnment. Helio

nces to repla c

lication rights

or building a

hway to the P

ovides power

d in the Yan a

recovering c

over the Gaba

0 hectare Cori

e up of appli c

Ica Departm

of its

Helio”;

Gaban

million

n each

otal of

within

holder

econd

me that

terms

ear. In

and to

tion in

fort to

rojects

illing.

Helio’s

en the

ention

unced

result,

o has,

ce the

s. The

mine.

Puerto

to the

amayo

coarse

an and

i Gold

cation

ment &

Mr. Alistair Waddell, BSc (Hons), a Member of the Australian Institute of Mining and Metallurgy

(MAusIMM), is a director of Palamina Corp. He is a Qualified Person as defined by National Instrument

43-101 and has supervised the preparation, compilation and review of the geological and technical

contents of this press release.

About Palamina Corp.

Palamina holds the application and mining rights to four gold projects in south-eastern Peru in the Puno

Orogenic Gold Belt (POGB), a silver copper project in the Santa Lucia district and two copper-gold

projects in Southern Peru. Palamina has 36,228,636 shares outstanding and trades on the TSX Venture

Exchange under the symbol PA.

FOR FURTHER INFORMATION PLEASE CONTACT:

A

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 statemen ts are frequently characterized by words such

as “plan”, “continue”, “expect”, “project”, “int end”, “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 statem ents include, but are not limited to, the use of

proceeds of the Offering and the Company's future busi ness 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 t hat could cause actual events or results to differ

materially from those projected in the forward-l ooking 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 eve nts 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 S ervices Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.