Palladium One Identifies New Drill Targets on the Haukiaho Trend at LK PGE-Ni-Cu Project in Finland

Vancouver, May 7, 2020 - Palladium One Mining Inc. (TSXV: PDM) (FSE: 7N11) (OTC Pink: NKORF) (the "Company" or "Palladium One") is pleased to report that results from the Haukiaho Induced Polarization (IP) survey have outlined several new and large chargeability drill targets.

Highlights:

• The Haukiaho IP survey grid covered over five (5) kilometers of the seventeen (17) kilometer strike length of the highly prospective Haukiaho trend, (Figure 1).
• The survey identified three new drill target areas of strong chargeability (western, central and eastern), two of which are outside of the historic 2013 Haukiaho resource area (Figure 2, 3 and 4).

Preliminary Analysis:

• The western chargeability anomaly corresponds well with the 2013 historic Haukiaho resource estimate and suggests a known 200-meter gap in the drilling contains significant mineralization.
• The central chargeability anomaly appears to occur underneath the bulk of the historic drilling in this area, suggesting the best mineralization has not been drill tested.
• The eastern chargeability anomaly lies in an area with sparse shallow historic drilling and occurs underneath where the company collected significant prospecting samples in 2019, returning up to 0.51% Cu, 0.33% Ni, and 0.96 g/t PGE (0.18 g/t Pt, 0.56 g/t Pd, 0.21 g/t Au) (see news release August 12, 2019).

Target Model:

• Large tonnage, near surface PGE-Ni-Cu mineralization amenable to open pit mining.
• Higher grade pods of PGE-Ni-Cu mineralization located in embayment structures along the basal contact of the Koillismaa complex.

"It appears that the Haukiaho trend hosts significantly more mineralization than outlined in the historic 2013 Haukiaho resource estimate. The fact that we have two (2) large chargeability drill targets located immediately to the east of the historic resource suggests significant potential to outline additional mineralization along the Haukiaho Trend. As a result, not only do we plan to convert the 2013 historic resource into a current NI43-101 resource estimate following infill drilling, we have the opportunity to significantly expand mineralization to the east" commented Derrick Weyrauch, President and CEO

"The Haukiaho trend, east of the historic 2013 Haukiaho resource, has had very limited assaying for PGEs. Reconnaissance drilling by Outokumpu, dating back to the 1960's was only analysed for copper and nickel, yet clear evidence exists that PGEs are present along the contact. The combination of historic drilling paired with newly identified chargeability anomalies has provided several new high-quality drill targets." Commented Neil Pettigrew, Vice President Exploration

Figure 1. LK Project with IP survey grids (blue lines). Red circles represent the Kaukua NI43-101 compliant resource estimate, and the 2013 historic Haukiaho resource estimate. Property outlines are based on the form of legal status.

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Figure 2. Plan view of the 2020 Haukiaho grid IP survey showing chargeability.

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Figure 3. Long section view, looking north, of the 2020 Haukiaho IP survey showing chargeability.

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Figure 4. Isometric view, looking northeast of the 2020 Haukiaho IP surveys showing chargeability.

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Drone Magnetic Survey

The Haukiaho mineralization is closely tied to peridotitic rocks along the basal contact of the Koillismaa Complex. These rocks typically contain slightly more copper-nickel sulphide than the Kaukua-style mineralization, which is PGE (palladium, platinum, gold) dominant. Haukiaho rocks also contain abundant magnetite and the mineralized zone is easily traced by airborne magnetics. Therefore, the Company flew a 50-meter spaced high-resolution drone magnetic (Mag) survey over the Haukiaho grid (Figure 5). This survey has provided excellent detail and assisted in refining the geological model and drill hole targeting in the Haukiaho trend.

The combination of Haukiaho Mag and IP surveys has provided strong evidence suggesting that Haukiaho-type mineralization not only extends well to the east of the 2013 historic Haukiaho resource but that higher-grade pods also occur.

Figure 5. Haukiaho 50-meter spaced drone magnetic survey, First Vertical Derivative.

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Historic Haukiaho Resource Estimate

In 2013, Finore Mining Inc. completed a non-pit constrained NI43-101 historic resource estimate at Haukiaho (Figure 6). This resource encompassed widely spaced drilling with a focus on maximizing tonnage, not grade. An earlier historic resource completed by Outokumpu in the 1980's covering a much larger part of the Haukiaho trend was focused more on grade and used a 0.7% Cu_eq cut-off (defined as Cu% + 2 x Ni%) and returned 7 million tonnes grading 0.38% Cu and 0.24% Ni, however importantly, no PGE assays were conducted. As a result, based on the previous work conducted at Haukiaho, opportunity exists to increase grade and to increase known mineralization.

Figure 6. Palladium equivalent (Pd_eq) grade shells along the Haukiaho Trend. Note: Pd_eq grades generated using historic drilling east of the 2013 historic resource, frequently include holes for which only copper-nickel analysis were conducted, therefore underestimating the actual Pd_eq grade. Pd_eq calculation used metal prices (in USD) of $1,100/oz for Pd, $950/oz for Pt, $1,300/oz for Au, $6,614/t for Cu and $15,432/t for Ni which are the same as those used in the Company's pit-constrained NI43-101 Kaukua zone resource estimate (see September 9 2019 news release).

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Qualified Person

The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo, Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43-101.

About Palladium One

Palladium One Mining Inc. is a palladium dominant, PGE, nickel, copper exploration and development company. Its assets consist of the Lantinen Koillismaa ("LK") and Kostonjarvi ("KS") PGE-Cu-Ni projects, located in north-central Finland and the Tyko Ni-Cu-PGE and Disraeli PGE-Ni-Cu properties in Ontario, Canada. All projects are 100% owned and are of a district scale. LK is an advanced project targeting disseminated sulphide along 38 kilometers of favorable basal contact. The KS project is targeting massive sulphide within a 20,000-hectare land package covering a regional scale gravity and magnetic geophysical anomaly. Tyko is a 13,000-hectare project targeting disseminated and massive sulphide in a highly metamorphosed Archean terrain. Disraeli is a 2,500-hectare project targeting PGE-rich disseminated and massive sulphide in a highly productive Proterozoic mid-continent rift.

ON BEHALF OF THE BOARD
"Derrick Weyrauch"
President & CEO, Director

For further information contact:
Derrick Weyrauch, President & CEO
Email: info@palladiumoneinc.com
Phone: 1-778-327-5799

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This press release is not an offer or a solicitation of an offer of securities for sale in the United States of America. The common shares of Palladium One Mining Inc. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

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