Mr. Joseph van den Elsen reports

PAMPA METALS UPSIZES FULLY SUBSCRIBED PRIVATE PLACEMENT TO $1.6M

In response to strong demand, Pampa Metals Corp. has upsized the fully subscribed non-brokered private placement announced on Dec. 8, 2023. The placement will now consist of 10 million units at a price of 16 cents per unit for gross proceeds of $1.6-million. Each unit will consist of one fully paid common share and a half share purchase warrant. Each whole warrant shall entitle the holder to acquire an additional common share at a price of 30 cents for a period of three years after the closing of the placement.

The first tranche of the placement will close on Wednesday, Dec. 20, with a second and final tranche anticipated to close on Friday, Dec. 22.

Proceeds of the placement will finance follow-up diamond drilling at the newly acquired Piuquenes copper-gold porphyry project, where the company recently reported 130 metres from 362 m at 1.31 per cent CuEq (copper equivalent), within a broader interval of 558 m from 362 m at 0.73 per cent CuEq which remains open at depth (refer Dec. 5, 2023, news release). Preparatory work is under way, and drilling is scheduled to commence in mid-January.

Joseph van den Elsen, the company's president and chief executive officer, stated: "We are delighted with the market response to our newly acquired flagship project and demand for the placement. Having already mobilized, we look forward to follow-up testing of the depth and lateral extension of the relatively shallow and significant, high-grade intervals of reported mineralization at Piuquenes and the development of an aggressive, multicampaign exploration program."

In connection with the placement, the company will pay finders' fees of up to 7 per cent in cash and 7 per cent in finders' warrants from the sale of units to third parties sourced by finders. Finders' warrants will be on the same terms as those issued under the placement.

Any securities issued in connection with the placement will be subject to a four-month hold period, in accordance with securities laws and the policies of the Canadian Securities Exchange, as applicable.

About Pampa Metals Corp.

Pampa Metals is listed on the Canadian Securities Exchange, Frankfurt and OTC exchanges, 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 joint venture 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.

We seek Safe Harbor.