Mr. Joseph van den Elsen reports

PAMPA METALS CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT

Pampa Metals Corp. has issued 2.25 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 $360,000. 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.

No cash commissions or finder's warrants were paid and all securities issued are subject to a four-month hold period, in accordance with securities laws and the policies of the Canadian Securities Exchange, as applicable.

Two directors of the company participated in the offering in the combined amount of $87,400. The transaction with the directors, who are insiders of the company, constitutes a related party transaction as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The company is relying on the exemptions under Section 5.5(a) and Section 5.7(1)(a) from the formal valuation and minority shareholder approval requirements of MI 61-101, as the fair market value of the common shares issued to the related party and the consideration paid by the related party under the offering does not exceed 25 per cent of the company's market capitalization, as determined in accordance with MI 61-101. The company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the offering, as the details of the participation by related party of the company were not settled until shortly prior to closing of the offering.

Total gross offering proceeds of $1.6-million 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 at 1.31 per cent copper equivalent, within a broader interval of 558 metres from 362 metres at 0.73 per cent CuEq 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, with assay results to follow shortly thereafter.

Grant of incentive stock options and restricted share units

The company also announces that it has granted a total of 2,117,138 stock options and restricted share units to its president and chief executive officer and two consultants, in recognition of their effort in identifying and securing the Piuquenes project.

One million RSUs have been granted to the company's president and chief executive officer, with 500,000 to vest upon the 10-day volume weighted average trading price of the common shares being equal to 30 cents and 500,000 upon the 10-day volume weighted average trading price of the common shares being equal to 45 cents.

A total of 650,000 stock options exercisable at 30 cents until Dec. 28, 2026, have been issued to one consultant and 467,138 RSUs to another consultant, to vest upon the 10-day volume weighted average trading price of the common shares being equal to 30 cents.

About Pampa Metals Corp.

Pampa Metals is listed on the Canadian Stock Exchange (CSE: PM) and Frankfurt (FSE: FIR) and OTC (OTCQB: PMMCF) 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.