Mr. Andrew Thomson reports

PALAMINA COMPLETES FIRST TRANCHE OF PRIVATE PLACEMENT

Palamina Corp. has closed a first tranche of its non-brokered private placement offering announced on Oct. 9, 2025. The company raised a total of $1,634,375 for the issuance of 13,075,000 units at a price of 12.5 cents per unit. Each unit consists of one common share and one warrant. Each whole warrant is exercisable to acquire one common share at a price of 20 cents for a period of two years after the date of issuance unless the stock trades at 35 cents per share on a volume-weighted average basis over a 10-day period at which point the company may determine to accelerate the expiration date of the warrants to 30 days following a press release announcing such.

Net proceeds of the offering will be directed towards advancing Palamina's Galena silver copper manganese project and Usicayos gold project and general corporate and working capital purposes. All securities issued pursuant to the offering are subject to a statutory hold period ending March 6, 2026. The offering is subject to TSX Venture Exchange acceptance of regulatory filings.

Andrew Thomson and Michael Farrant, both directors and officers of Palamina, purchased a total of 3,795,000 units pursuant to the offering which constitutes a related party transaction as such term is defined by Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company was exempt from the MI 61-101 valuation and minority approval requirements for related party transactions in connection with the offering because the company was not listed on a stock exchange specified in Section 5.5(b) of MI 61-101, and neither the fair market value of the units purchased by the related parties, nor the proceeds to be received by the company in respect of the related parties participation in the offering, exceeded $2.5-million.

The company paid an eligible person a cash finder's fee of $750 and issued 6,000 finders' warrants equal to 6 per cent of the aggregate number of units sold under the offering attributable to the finder. Each finder warrant shall be exercisable to acquire one common share of the company for a period of two years from the closing date at an exercise price of 12.5 cents per share.

About Palamina Corp.

Palamina is an exploration company with a land bank of high-grade copper-silver assets in southeastern and northeastern Peru, and a land bank of gold projects in the Puno orogenic gold belt. Palamina trades on the TSX Venture Exchange under the symbol PA and on the OTCQB under the symbol PLMNF.

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