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Palamina Releases Drill Results from Its Maiden Drill Program at the Usicayos GOLD Project

Drill Results

PALAMINA RELEASES DRILL RESULTS FROM ITS

MAIDEN DRILL PROGRAM AT THE USICAYOS GOLD PROJECT

FOR IMMEDIATE RELEASE

Toronto – January 17, 2022

Palamina Corp. (TSXV: PA - OTCQB: PLMNF) completed 4 diamond drill holes for a total of 1,704.50

metres (‘m’) in December 2021. All assay results from core intervals of interest have now been returned.

The first 4 drill holes were completed in the Veta Zone which consists of multiple mineralized gold

structures defined at surface over an 800 metre strike length. Drilling to date has tested 600 metres of strike

length. Two additional holes designed to test the remaining 200 m of strike to the north-east have yet to be

completed. The Veta Zone is on the northeastern end of a 2.6 km long northeast trending gold structure

which includes the Cayos Zone.

“Palamina’s maiden drill program at the Usicayos gold project confirmed the orogenic gold system

identified at surface extends to depth to include a visible gold intercept assaying 3.09 g/t Au over 1.0 m and

0.5 g/t over 24 m. The Company has kept the drill at site with a view to resuming drilling after the rainy

season in late April. Palamina continues to advance permitting to drill other mineralized gold zones within

the 2.6 km mineralized gold trend.” commented Andrew Thomson, President of Palamina.

Drill

Hole

From

(m)

To

(m)

Interval

(m)

Au

g/t

VE-01-2021 147.00 155.00 8.00 0.44

VE-01-2021 193.50 199.50 6.00 0.33

VE-01-2021 213.50 214.50 1.00 0.33

VE-01-2021 229.00 231.00 2.00 0.36

VE-01-2021 261.00 263.00 2.00 0.44

VE-01-2021 300.00 302.00 2.00 0.45

VE-01-2021 312.00 314.00 2.00 0.41

VE-01-2021 316.00 320.00 4.00 0.41

VE-01-2021 324.00 326.00 2.00 0.78

VE-01-2021 334.00 342.00 8.00 0.35

VE-01-2021 452.00 454.00 2.00 0.37

VE-01-2021 469.00 470.00 1.00 0.46

VE-02-2021 185.00 186.00 1.00 3.09

VE-02-2021 266.00 268.00 2.00 0.57

VE-02-2021 278.00 282.00 4.00 0.38

VE-03-2021 268.00 270.00 2.00 0.30

VE-03-2021 272.00 275.00 3.00 0.47

VE-03-2021 288.00 312.00 24.00 0.50

VE-03-2021 323.00 324.00 1.00 0.30

Drill

Hole

From

(m)

To

(m)

Interval

(m)

Au

g/t

VE-03-2021 328.00 329.00 1.00 0.46

VE-03-2021 339.00 340.00 1.00 0.46

VE-03-2021 364.00 365.00 1.00 0.31

VE-03-2021 382.00 386.00 4.00 0.30

VE-03-2021 390.00 392.00 2.00 0.61

VE-03-2021 404.00 408.00 4.00 0.40

VE-04-2021 180.00 191.00 11.00 0.82

Incl. 190.00 191.00 1.00 3.84

VE-04-2021 223.00 224.00 1.00 0.49

VE-04-2021 232.00 233.00 1.00 0.48

VE-04-2021 250.00 251.00 1.00 0.34

VE-04-2021 256.00 257.00 1.00 0.32

VE-04-2021 383.00 387.00 4.00 0.34

A plan map and sections for all four holes completed to date may be viewed at:

https://www.palamina.com/s/NR71CS.pdf

Initial indications from drilling in the Veta Zone would suggest that the intensity and concentration of

veining and gold mineralization observed at surface does not extend to the depth targeted by the 2021

drilling or that the Veta Zone may have a plunge and a narrower profile than exhibited at surface. Palamina

will re-examine surface outcrops in the Veta Zone to see if further geological data regarding plunge

orientation, dilational or crosscutting features may guide new drilling. Further drilling at the Veta Zone is

under review.

Palamina is also continuing a robust examination of additional anomalous gold zones along the Usicayos

Trend to better understand the mineralogy and ultimately decide where further drilling is best warranted

and will advance permitting to reach these targets particularly in the Cayos Zone where surface sampling

has returned significant gold values.

Technical Information

Palamina drill core samples are being collected and logged in the field by Palamina staff and subsequently

transported to Palamina’s base of operations in Juliaca for cutting . One half of sawn core from sample

intervals is being 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 analysed 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 McGuinty, P. Geo., Palamina’s VP

Exploration. He is a Qualified Person as defined by National Instrument 43-101 and has supervised the

preparation of the technical contents of this press release.

About Palamina Corp.

Palamina has first mover advantage on 4 district scale gold projects in south eastern Peru in the Puno

Orogenic Gold Belt (POGB). A maiden drill program is underway at its flagship Usicayos Gold Project.

The Company also has rights to a silver -copper project in the Santa Lucia district and two copper -gold

projects in Southern Peru. Palamina holds an 19.9% equity interest in Winshear Gold Corp. who are

advancing the Gaban Gold Project to the drill discovery phase. Palamina has 65,284,836 shares outstanding

and trades on the TSX Venture Exchange under the symbol PA and on the OTCQB Venture Market under

the symbol PLMNF.

On Behalf of the Board of Directors:

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 assumption s

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 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 obligatio n, 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 t he

Company appears in the Company’s continuous disclosure 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.