Mr. Joseph van den Elsen reports

PAMPA METALS CLOSES FIRST TRANCHE OF FULLY SUBSCRIBED PRIVATE PLACEMENT

Pampa Metals Corp. has issued 7.75 million units at a price of 16 cents per unit under the non-brokered private placement offering detailed in a Dec. 19, 2023, news release for gross proceeds of $1.24-million. Each unit consists of one fully paid common share and a half share purchase warrant entitling 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 offering.

In connection with the placement, the company paid total cash commissions of $37,800 and issued 236,250 finder warrants. Each finder warrant is exercisable into a common share of the company at an exercise price of 30 cents for a period of three years from the date of closing of the offering.

The company anticipates closing the second and final tranche fully subscribed tranche of the placement on Dec. 22, 2023.

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 metres of 1.31 per cent copper equivalent within a broader interval of 558 metres from 362 metres of 0.73 per cent copper equivalent, which remains open at depth (refer to Dec. 5, 2023, news release). Preparatory work is under way, and drilling is scheduled to commence in mid-January.

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 Stock Exchange, the Frankfurt Stock Exchange and the OTCQB exchange 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, geologist, 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.

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