Mr. Andrew Thomson reports

PALAMINA COMPLETES $750,000 PRIVATE PLACEMENT

Palamina Corp. has closed its non-brokered private placement offering announced on May 15, 2023. The company raised a total of $750,000 for the issuance of six million units at a price of 12.5 cents per unit. Each unit consists of one common share and one warrant. Each whole warrant is exercisable to acquire one common share at a price of 25 cents for a period of two years after the date of issuance.

Net proceeds of the offering will be used for further exploration of its flagship Usicayos project and general corporate and working capital purposes. All securities issued pursuant to the offering are subject to a statutory hold period ending Oct. 16, 2023. The offering is subject to TSX Venture Exchange acceptance of regulatory filings.

Christina McCarthy, Sean Spraggett, Andrew Thomson and Alastair Waddell, all directors of Palamina, purchased a total of 1.37 million units pursuant to the offering, which constitutes a related party transaction as such term is defined by Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company was exempt from the MI 61-101 valuation and minority approval requirements for related party transactions in connection with the offering because the company was not listed on a stock exchange specified in Section 5.5(b) of MI 61-101, and neither the fair market value of the units purchased by the related parties, nor the proceeds to be received by the company in respect of the related parties' participation in the offering, exceeded $2.5-million.

The company paid an eligible person a cash finder's fee of $2,625 and issued 21,000 finder's warrants equal to 6 per cent of the aggregate number of units sold under the offering attributable to the finder. Each finder's warrant shall be exercisable to acquire one common share of the company for a period of two years from the closing date at an exercise price of 12.5 cents per share.

About Palamina Corp.

Palamina has participation in nine gold projects in southeastern Peru, hosted within the Puno orogenic gold belt (POGB). The company also has rights to the Galena silver-copper project in the Santa Lucia district and two additional copper-gold projects in southern Peru. Palamina holds an 18.5-per-cent equity interest in Winshear Gold Corp., which is advancing the Gaban gold project to the drill discovery phase. Winshear is also awaiting a judgement after concluding its arbitration proceedings against the government of Tanzania in February, 2023, for the expropriation of its SMP gold deposit. Winshear is seeking in excess of $130-million for the loss of its investment in Tanzania.

Palamina has 71,284,836 shares outstanding and trades on the TSX Venture Exchange under the symbol PA and on the OTCQB Venture Market under the symbol PLMNF.

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