Mr. Joseph van den Elsen reports

PAMPA METALS OPTIONS COPPER-GOLD PROJECT ALONG SAN JUAN PORPHYRY BELT. HISTORICAL UNAUDITED INTERVALS INCLUDE 413.5M FROM 167 @ 0.47% CU AND 0.52 G/T AU (0.87% CUEQ)*

Pampa Metals Corp., on Nov. 30, 2023, entered into an option and joint venture agreement with Compania Minera Piuquenes S.A. (a Panamanian entity) to acquire an 80-per-cent interest in the Piuquenes porphyry copper-gold project, located in the San Juan province, Argentina. Proximal to the globally significant El Pachon (Glencore) and Altar (Aldebaran Resources) projects, the Piuquenes porphyry copper-gold project has been privately held since its discovery.

Piuquenes porphyry copper-gold project

The Piuquenes porphyry copper-gold project was first drilled in the 1990s, when Inmet Mining Corp. (IMC) (subsequently acquired by First Quantum in 2013) completed eight diamond drill holes for a total of 1,894.2 metres (m). Significant intersections of copper (Cu) and gold (Au) included:

• 413.5 m (167 to 580.5 m) at 0.47 per cent Cu and 0.52 gram per tonne (g/t) Au (0.87 per cent copper equivalent (CuEq))*;
• 67.5 m (207 to 274.5 m) at 0.63 per cent Cu and 0.51 g/t Au (1.02 per cent CuEq)*;
• 158 m (three to 161 m) at 0.32 per cent Cu and 0.6 g/t Au (0.78 per cent CuEq)*.

In 2016, Anglo American Argentina (AAA) drilled a single diamond borehole of 920.2 m total length, crossing the mineral intersections discovered by IMC. Climatic events prevented the assaying of the recovered drill core, with only visual observations of a 508 m (362 to 870 m) interval of copper mineralization described prior to AAA's withdrawal from the project.

Following completion of its due diligence, Pampa Metals considers the project to be highly prospective and drill ready, owing to a solid technical foundation, including well-preserved historic drill cores and 3-D modelling, and anticipates commencing follow-up drilling in January, 2024.

As part of its due diligence, Pampa Metals has relogged and assayed the AAA diamond drill hole with results expected from ALS Mendoza in early December. The company has also reviewed the IMC diamond drill core and observed visual mineralization, without yet completing QA/QC (quality assurance/quality control). The company awaits the imminent assay and QA/QC results of the AAA PIU-16 920 m diamond drill hole, prior to finalizing its drill program planning.

Commenting on the transaction, Joseph van den Elsen, president and chief executive officer, stated:

"Pampa Metals is pleased to announce this company making transaction and the acquisition of a flagship project, privately held since its discovery. Pampa considers the historical drill intercepts to be highly encouraging and indicative of the Piuquenes project's potential to host a significant near-surface, high-grade porphyry copper-gold deposit in a world-class location. Our executive team remains in Argentina, working with stakeholders and finalizing plans to initiate a follow-up diamond drilling program in January, 2024."

Project location and exploration history: Piuquenes porphyry copper-gold deposit

The Piuquenes project consists of nine mining titles that cover an area of approximately 1,880 hectares (ha) in the San Juan province of Argentina, adjacent (to the north) with the Altar copper-gold porphyry project (Aldebaran Resources Inc.) and approximately 190 kilometres (km) west of the city of San Juan. Other large porphyry copper projects in the San Juan Miocene porphyry belt include, El Pachon (Glencore), approximately 30 km to the south, the operating Los Pelambres copper mine (60 per cent, Antofagasta PLC) in Chile and Los Azules (McEwen Mining), 50 km to the northeast.

The first evidence of copper oxides at Piuquenes was reported in 1970 by Compania Minera Aguilar S.A., which subsequently completed the first exploration program between 1973 and 1975. Between 1995 and 1997, IMC completed a heli-magnetic/radiometric survey, surface geology, rock and soil geochemistry, ground magnetics, PD-IP, and eight diamond drill holes (DDH-P1A to DDH-P8A) for a total of 1,894.2 m. Subsequently, in 2015 to 2016, AAA completed detailed 1:2,500 geology and geochemistry, 17.8 km of gDAS24 deep 3-D PD-IP/NSMT and a 920.2 m diamond drill hole (PUI16-DDH01).

Since its discovery, the Piuquenes copper-gold porphyry has remained privately held.

Follow-up drilling

Pampa Metals has designed a diamond drill program to be completed across two drilling seasons, which will be reviewed and finalized upon the imminent receipt of the assay and QA/QC results of the AAA PIU16-DDH01 920 m diamond drill hole.

Phase 1 consists of an approximately 2,500 m diamond drill program designed to test the depth and lateral extension of known mineralization, to be completed between January and April, 2024 (indicative), with assays results expected progressively between March and May, 2024 (indicative).

Phase 2 consists of a six-month drill program designed to significantly expand the mineralized envelope and is scheduled to commence in October, 2024 (indicative).

Commercial terms -- option and joint venture agreement

On Nov. 30, 2023, the company entered into an option and joint venture agreement with Compania Minera Piuquenes S.A. (a Panamanian entity), comprising option payments, work commitments and an option exercise price for the acquisition of an 80-per-cent direct interest in the Piuquenes project. The specific commercial terms are provided in the attached table.

About Pampa Metals Corp.

Pampa Metals is listed on the Canadian Securities Exchange, the Frankfurt Stock Exchange and the OTC (over-the-counter) market, and wholly owns a portfolio of projects highly prospective for copper, molybdenum and gold along proven and highly productive mineral belts in Chile, the world's largest copper producer.

In November, 2023, the company announced it had entered into an option and JV agreement for the acquisition of an 80-per-cent interest in the Piuquenes copper-gold porphyry project in San Juan province, Argentina.

Qualified person

Technical information in this news release has been approved by Mario Orrego G., geologist and a registered member of the Chilean Mining Commission, and a qualified person as defined by National Instrument 43-101. Mr. Orrego is a consultant to the company.

* Per cent CuEq values are calculated based on copper and gold metal prices: Cu equal to $3.20 (U.S.) per pound (lb) and Au equal to $1,700 (U.S.) per ounce (oz). The formula utilized to calculate per cent CuEq is: CuEq grade (per cent) equals Cu head grade (per cent) plus (Au head grade (g/t) dividend by 31.104) times (Au price (U.S. $/oz) dividend by Cu price (U.S. $/lb) divided by 22.04). The reader is cautioned that Pampa Metals' projects are early-stage exploration projects, and reference to existing mines and deposits, or mineralization hosted on adjacent or nearby properties, is not necessarily indicative of any mineralization on Pampa Metals' properties.

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