Plan of arrangement

Following shareholder approval obtained on Sept. 24, 2026, Palamina Corp. intends to complete a plan of arrangement under Section 182 of the Business Corporations Act (Ontario). The arrangement is expected to close on Sept. 29, 2026, and effect the spinoff of its wholly owned subsidiary, Colt Silver Corp. (Spinco). Spinco holds a silver project located in the Puno department of Peru (districts of Santa Lucia and Cabanillas, provinces of Lampa and San Roman).

Under the terms of the arrangement, Palamina shareholders will receive one new Palamina common share and 0.25 of a Spinco common share for each existing Palamina share held. Palamina will retain approximately 4,577,766 Spinco shares. Palamina warrantholders will also be entitled to 0.25 of a Spinco share for each common share acquired upon exercising their warrants.

Shareholders of Palamins must complete the letter of transmittal, which will be used to exchange their certificates representing existing common shares for share certificates representing the new common shares and certificates representing the Spinco shares. Until exchanged, each certificate representing existing common shares will, after the effective date, represent only the right to receive, upon surrender, new common shares and Spinco shares.

Postarrangement

Capitalization:  unlimited shares with no par value, of which 93,234,836 common shares are issued and outstanding

Escrow:  zero common shares

Transfer agent:  Computershare Investor Services Inc.

Trading symbol:  PA (unchanged)

Cusip No.:  69607A 10 9 (new)

Effective at the open on Tuesday, Sept. 29, 2026, Palamina will commence trading under the new Cusip number. The name of the company has not been changed.

For more information, please refer to the Palamina's information circular dated Aug. 24, 2026, and available on SEDAR+, and news releases dated Feb. 27, 2026, April 20, 2026, Aug. 14, 2026, Aug. 28, 2026, and Sept. 25, 2026.