Mr. Andrew Thomson reports

PALAMINA MAILING OF MEETING MATERIALS

Palamina Corp. has mailed its management information circular and related proxy materials to its shareholders in connection with the annual and special meeting of shareholders to be held at 10:30 a.m. Toronto time on Sept. 24, 2026.

At the meeting, shareholders will be asked to elect the company's directors, appoint the company's auditor and approve the company's equity incentive plan. The shareholders will also be asked to approve the previously announced spinout transaction pursuant to an arrangement agreement between the company, Colt Silver Corp. and Colt Finco Corp., whereby Palamina will distribute a certain number of common shares of Colt Silver to the shareholders of Palamina pursuant to a plan of arrangement under Section 182 of the Business Corporations Act (Ontario) and an equity stock option plan for Colt Silver.

The Ontario Superior Court of Justice (Commercial List) has issued an interim order in connection with the arrangement, authorizing the calling and holding of the meeting and other matters related to the conduct of the meeting. The TSX Venture Exchange has conditionally approved the listing of the common shares of Colt Silver upon completion of the arrangement and satisfaction of final listing requirements of the TSX-V.

The circular contains, among other things, details concerning the arrangement, the requirements for the arrangement to become effective, procedures for voting at the meeting and other related matters. Shareholders are urged to carefully review the circular and accompanying materials as they contain important information regarding the arrangement and its consequences to shareholders. A copy of the circular and other meeting materials are available on the company's website or under the company's profile on SEDAR+. Palamina's board of directors unanimously recommends that shareholders vote in favour of the transaction.

Completion of the arrangement is subject to the approval by: (i) at least 66-2/3rds per cent of the votes cast by the shareholders; and (ii) a simple majority of the votes cast by the shareholders, excluding the votes attached to shares whose votes are required to be excluded for purposes of the minority shareholder vote required pursuant to Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The arrangement is also subject to approval of a final order by the court. It is anticipated that the arrangement will be completed within two weeks following completion of the meeting.

About Palamina Corp.

Palamina is a mineral exploration company with six gold projects in the Puno orogenic gold belt in southeastern Peru and a separate Canadian 100-per-cent-owned subsidiary, Colt Silver, with seven silver-copper assets across southeastern, northeastern and central Peru. Colt Silver is being spun out into its own stand-alone public company to unlock additional shareholder value. Palamina trades on the TSX-V (symbol: PA) and the OTCQB (symbol: PLMNF).

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