Mr. Derrick Weyrauch reports

PALLADIUM ONE REPORTS RECONNAISSANCE PROSPECTING RETURNING 3.106 G/T PGE, 0.78% CU, AND 0.13% NI AT THE LK PROJECT, FINLAND

Technical director Neil Pettigrew recently completed a site visit and reconnaissance prospecting on Palladium One Mining Inc.'s Lantinen Koillismaa (LK) project located in north-central Finland.

The new Palladium One team site visit included the review of the geology of the entire Koillismaa layered mafic-ultramafic complex, inspection of the LK project properties and historic drill core. Successful meetings were also held with local municipal leaders and Finnish consultants who are expected to have key roles in conducting future exploration programs. As part of this site visit, previously identified high-priority areas were also visited and reconnaissance surface samples were collected. The sampling focused on two areas, Haukiaho and Murtolampi, which are discussed in detail below.

                                RECONNAISSANCE SAMPLING
 
Sample No.     Area           Cu wt    Ni wt        Pt       Pd      Au  PGE (Pt-Pd-Au)
                                (%)      (%)     (g/t)    (g/t)   (g/t)           (g/t)

NP-LK-19-001   Haukiaho East   0.23     0.16     0.095    0.295   0.135           0.525
NP-LK-19-002   Haukiaho East   0.51     0.33     0.185    0.563   0.209           0.957
NP-LK-19-003   Murtolampi      0.78     0.13     1.115    1.855   0.136           3.106
  

Haukiaho

Surface sampling conducted about two kilometres east of the most recent (2013) historic Haukiaho resource returned up to 0.51 per cent copper, 0.33 per cent nickel and 0.957 gram per tonnes PGE.

This sampling was undertaken in historic workings associated with a mini-bulk sample collected by Outokumpu in the 1960s, which only tested for copper and nickel mineralization. That is, no PGE analysis was conducted at that time. Historic drilling by Outokumpu included four nearby diamond drill holes that also only analyzed for copper and nickel mineralization and which returned up to 0.21 per cent Cu, 0.20 per cent Ni over 35.21 m in hole R692 and 0.25 per cent Cu, 0.14 per cent Ni over 37.10 m, including 0.43 per cent Cu, 0.19 per cent Ni over 11.89 m in hole R609.

The most recent historic Haukiaho resource was completed by Finore Mining Inc. in 2013 and consisted of 23.2 million inferred tonnes grading 0.21 per cent Cu, 0.14 per cent Ni, 0.13 g/t Pt, 0.31 g/t Pd and 0.10 g/t Au (0.53 g/t PGE) using a 0.1 g/t Pd cut-off. This resource encompassed widely spaced drilling with a focus on maximizing tonnage.

An earlier historic resource completed by Outokumpu in the 1980s covering a larger area than the 2013 Finore resource (including the historic workings discussed above) was focused more on grade using a 0.7-per-cent CuEq cut-off (defined as Cu per cent plus two times Ni per cent) and returned seven million tonnes grading 0.38 per cent Cu and 0.24 per cent Ni (again, no PGE analysis was performed).

These historic resources indicate that Haukiaho mineralization possesses pods/lenses of higher-grade material and with focused drilling could result in a higher-grade National Instrument 43-101-compliant resource being defined.

Murtolampi

Following up shallow historic drilling with encouraging PGE mineralization encountered by the Finish Geological Survey (GTK), surface sampling was undertaken at the Murtolampi target and returned 0.78 per cent Cu, 0.13 per cent Ni and 3.106 g/t PGE.

Murtolampie lies just 2.5 km northeast of the historic Kaukua resource and was last explored in the 1990s. The area was discovered by prospecting by Outokumpu in the early 1990s and in 1999 GTK drilled a 200 m long shallow (average less than 40 m depth) fence of six diamond drill holes.

All GTK holes intersected PGE mineralization with up to 0.17 per cent Cu, 0.10 per cent Ni and 0.86 g/t PGE over 30.15 m, including 0.21 per cent Cu, 0.12 per cent Ni and 1.01 g/t PGE over 19.0 m in hole R369. Despite highly encouraging initial results this area has never experienced any follow-up work and is a high priority for the company as it possesses similar PGE-rich mineralization to the Kaukua area.

Independent NI 43-101-compliant resource estimate

The company is pleased to announce that Mining Plus U.K. Ltd. is approaching completion of a new independent National Instrument 43-101-compliant mineral resource estimate for the Kaukua deposit of the LK project. Kaukua, currently hosts a historic (2013) resource.

                                          2013 HISTORIC KAUKUA RESOURCE ESTIMATE
 
Classification   Cut-off       Tonnes      Pd      Pt     Au      Ni     Cu        PGE        Pd       Pt        Au
                (Pd g/t)                (g/t)   (g/t)  (g/t)     (%)    (%) (Pd-Pt-Au)      (oz)     (oz)      (oz)

Indicated           0.10   10,400,000    0.73    0.26   0.08    0.10   0.15       1.07   244,100   86,900    26,700
Inferred            0.10   13,200,000    0.63    0.22   0.06    0.10   0.13       0.91   267,400   93,400    25,500

Derrick Weyrauch, interim president and chief executive officer, stated: "We are very encouraged by the reconnaissance sampling that identified PGE mineralization about two km east of the historic Haukiaho deposit which supports our conviction that Haukiaho not only extends to the west, but also significantly to the east, making it highly prospective for the definition of a significant open-pit resource. Murtolampi is a high-priority target for the company and we are extremely pleased with the excellent reconnaissance sample which yielded 0.78 per cent Cu, 0.13 per cent Ni and 3.106 g/t PGE."

About LK PGE-Cu-Ni project

The LK project land package consists of a total of 2,480 hectares and comprises two exploration permit renewals and seven exploration permit applications covering over 25 km of the prospective basal unit in the Koillismaa layered mafic-ultramafic complex.

The Koillismaa complex is part of a suite of Paleoproterozoic continental rift-related intrusions which are highly prospective for PGE-Cu-Ni deposits such as the nearby Suhanko (Arctic Platinum) deposit located 90 km northwest of the LK project. Suhanko hosts an SAMREC-code-compliant measured and indicated resources of 5.4 million ounces of palladium grading 1.44 g/t Pd and 1.3 million ounces of platinum grading 0.35 g/t Pt at a cut-off of 1.0 g/t PGE Au as well as inferred resources of 4.4 million ounces of palladium grading 1.50 g/t Pd and 1.1 million ounces of platinum grading 0.38 g/t Pt.

Qualified person

Neil Pettigrew, PGeo, a director of the company and is the qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical information in this document.

About Palladium One Mining Inc.

Palladium One is a PGE, nickel, copper exploration and development company. Its assets consist of the Lantinen Koillismaa PGE-Cu-Ni project, located in north-central Finland, and the Tyko Ni-Cu-PGE property, near Marathon, Ont.

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