Mr. Wayne Tisdale reports

CANADIAN PALLADIUM ANNOUNCES $3 MILLION PRIVATE PLACEMENT

Canadian Palladium Resources Inc. (formerly 21C Metals Inc.) has entered into a letter of engagement with Eight Capital, under which Eight Capital, acting as agent for the company, has agreed to offer for sale a combination of units and flow-through common shares of the company on a best effort private placement basis, for aggregate gross proceeds of up to $3,000,019.50, subject to all required regulatory approvals. Up to 8,333,400 units will be offered at an offering price of 12 cents per unit, and up to 14,814,900 FT shares will be offered at an offering price of 13.5 cents per FT share.

Each unit shall consist of one common share of the company and one common share purchase warrant. Each warrant shall entitle the holder thereof to acquire one share at a price of 18 cents for a period of 24 months following the closing date.

The company has granted Eight Capital an overallotment option to purchase up to an additional $1-million of units and/or FT shares at their respective offering price, exercisable in whole or in part, at any time on or prior to 48 hours prior to the closing of the offering. If this option is exercised in full, an additional $1-million will be raised pursuant to the offering, and the aggregate proceeds of the offering will be approximately $4-million.

The company intends to use the net proceeds of the offering to advance the exploration program on the company's East Bull palladium property and for working capital and general corporate purposes.

The gross proceeds from the sale of the FT shares will be used for expenditures which qualify as Canadian exploration expenses (CEE) and flow-through mining expenditures both within the meaning of the Income Tax Act (Canada). The company will renounce such CEE with an effective date of no later than Dec. 31, 2020.

The closing date of the offering is scheduled to be on or about Oct. 2, 2020, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the Canadian Securities Exchange and the applicable securities regulatory authorities.

As consideration for its services, Eight Capital will receive a cash commission equal to 7 per cent of the gross proceeds of the offering. The company will also issue to Eight Capital compensation warrants in an amount equal to 7 per cent of the number of units and FT shares sold pursuant to the offering. Each compensation warrant shall entitle the holder thereof to acquire one unit at a price of 12 cents for a period of 24 months.

We seek Safe Harbor.