Mr. James Newall reports

CANADIAN PALLADIUM ANNOUNCES AGREEMENT TO ACQUIRE MINERAL PROPERTIES IN EAST BRAZILIAN 'LITHIUM BELT '

Canadian Palladium Resources Inc. has entered into a share purchase agreement to acquire all of the issued and outstanding shares of 1439266 B.C. Ltd., the legal and beneficial owner of a 100-per-cent interest in 15 mineral tenements totalling 24,427.28 hectares, located in Lithium Valley in Minas Gerais state, Brazil.

The property is located in the east Brazilian lithium belt, sometimes called, Lithium Valley, which is home to three operating lithium mines, including Sigma Lithium's Groto do Cirilo mine and numerous advanced exploration projects such as Atlas Lithium's Neves project.

James Newall, the chief executive officer of Canadian Palladium, stated: "The acquisition of over 24,000 hectares of prospective licences in the east Brazilian lithium belt is an exciting prospect for the company. It fits well with our strategy of developing exploration projects with a range of metals and minerals that are crucial for the current move towards electrification. In addition, it provides us with the ability to explore year round ensuring a steady flow of news and updates for our shareholders."

Pursuant to the transaction, the shareholders of 1439266 B.C. would receive an aggregate of 12 million common shares of the company and cash payments totalling $300,000, $100,000 of which is to be paid on completion of the transaction and a further $200,000, of which is to be paid within three months from the closing date thereof. The completion of the transaction is subject to a number of customary terms and conditions.

Concurrently with the transaction, the company intends to complete the first tranche of a non-brokered private placement of up to 2,857,143 units of the company at a price of 35 cents per unit for gross proceeds of up to $1-million. Each unit will consist of one common share of the company and one-half of one common share purchase warrant, with each warrant being exercisable at a price of 45 cents for a period of 24 months. The company intends to use a portion of the net proceeds of the concurrent financing to finance the cash payments payable under the transaction.

Following the completion of the transaction, the company intends to complete a second tranche of the concurrent financing, intending to issue up to 8,571,429 units at a price of 35 cents for intended gross proceeds of up to $3-million. Pursuant to Canadian Securities Exchange requirements, the completion of the second tranche will be subject to receipt of shareholder approval. The company intends to obtain shareholder approval at its annual general and special meeting to be held on Dec. 8, 2023, to issue such number of common shares greater than 100 per cent of the current issued and outstanding.

The company intends to utilize the net proceeds from the second tranche financing to explore the property, conduct a drilling campaign at the company's Tisova/Klinenthal copper/cobalt exploration project, commission a preliminary economic assessment for the company's East Bull palladium project and for general working capital requirements. The selection and analysis of the drill targets (and results) for the company's Tisova/Klingenthal project will be carried out in conjunction with the European Union-financed exploration information systems project. (For further information, see the company's news release dated Feb. 17, 2022.)

All securities issued in connection with the concurrent financing and second tranche financing will be subject to a four-month hold period from the date of issue.

We seek Safe Harbor.