Palladium One Intersects Wide Interval of Mineralization at Haukiaho Trend at the Open Pit LK PGE-Cu-Ni Project

Highlights:

• Hole LK20-010 successfully intersected a wide interval of mineralization, within a chargeability anomaly, located in a 200m drilling gap in the 2013 historic Haukiaho resource.
• Drill results validate using Induced Polarization ("IP") as an effective tool within the 17 km long Haukiaho Trend, where very limited drilling has been conducted.
• Haukiaho hosts the highest nickel grades on the LK project with potential for a large bulk tonnage deposit.
• LK20-010 intersected 34.2m @ 2.09 g/t Pd_Eq (0.77g/t PGE, 0.22% nickel, 0.20% copper), within 83.3m @ 1.27 g/t Pd_Eq.
• Phase 1 drilling at LK has concluded with a total of 4,490m completed in 26 holes. Logging and assay sample preparation are underway.

Vancouver, September 15, 2020 - Palladium One Mining Inc. (TSXV: PDM) (FSE: 7N11) (OTC Pink: NKORF) (the "Company" or "Palladium One") is pleased to report the first diamond drill hole assays from the Haukiaho Trend, returned a wide interval of mineralization in a previously untested area thereby increasing the potential of the Haukiaho 2013 historic resource area (see details below). Haukiaho is located 12 kilometers ("km") southwest of the Kaukua Deposit, in the LK PGE-Cu-Ni Project (Figure 1). Hole LK20-010 intersected a core zone of 34.2m @ 2.09 g/t Palladium Equivalent ("Pd_Eq")* (0.77g/t PGE, 0.22% nickel, 0.20% copper),within a larger zone grading 83.30 @ 1.27g/t Pd_Eq (Figure 2 and 3).

President and CEO Derrick Weyrauch commented, "LK20-010 validates that targeting higher chargeability areas, can discover wide zones of higher grade mineralization. The 2013 historic Haukiaho resource used a very low cut-off, was not pit constrained and encompassed widely spaced drilling, with an apparent focus on maximizing tonnage, not economic grades. Having identified multiple chargeability anomalies at Haukiaho in 2020, we are now well positioned to continue a targeted drilling program to upgrade the historic resource at Haukiaho.

Three IP survey grids totaling 7.5 kms of strike length were conducted along the Haukiaho trend in 2020, each of which identified chargeability anomalies. The Haukiaho trend encompasses over 17 kms of favourable basal contact, of which the 2013 Historic Haukiaho resource only occupies ~1.5 kms of strike length, therefore creating opportunity at Haukiaho to expand resources."

A total of three holes were completed at Haukiaho (Figure 2). These holes were designed to expand higher grade zones, and in the case of LK20-010 (Figure 3) to test a newly identified chargeability anomaly (see news release May 7,2020) located within a 200m wide drilling gap within the historic 2013 Haukiaho resource. The mineralized interval for LK20-008 is likely wider than reported, initial sampling ended in mineralized quartz-albite footwall, additional sampling of this hole is currently underway. Additionally, hole LK20-009 intersected a thick diabase dyke shortly after the hole entered the mineralized zone resulting in only partially testing the zone.

Phase 1 Drill Program Update

The Company resumed the Phase I drilling program on August 10^th with a focus on the Kaukua South and Murtalampi zones in the greater Kaukua area (see news release July 14 and August 10, 2020). Drilling was completed in early September, while logging and sampling continue and is expected to conclude near the end of the month. A total of 14 holes, totalling 2,566m, were completed during the resumed program, bringing the total Phase I program to 26 holes totalling 4,490m.

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. Western part of the Haukiaho trend showing IP chargeability anomalies and 2020 Phase 1 drill hole locations.

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Figure 3. Cross section, looking west showing hole LK20-010 with chargeability isoshells.

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Table 1. Phase 1 Drill Results

* Palladium Equivalent "Pd_Eq" is calculated using metal prices (in USD) of $1,100/oz for palladium, $950/oz for platinum, $1,300/oz for gold, $6,614/t for copper and $15,432/t for nickel as used in the Company's 2019, 43-101 mineral resource estimate on the Kaukua Deposit (see press release September 9, 2019).
** Includes 16.25m of unsampled core given a zero grade.
*** Hole LK20-011 was abandoned at 43m depth due to excessive azimuth deviation and recollared on the same pad as hole LK20-012.
**** Reported widths are "drilled widths" true widths. Estimated to be approximately 90% of drilled width for holes LK20-001-005, 007, 008 & 010, and approximately 60% for 009, true widths for hole LK20-006, 011 & 012 are unknown at this time.
***** Grey Italicised values are previously released (see press release July 22, 28, August 11, 25, 2020)

Historic Haukiaho Resource Estimates

In 2013, Finore Mining Inc. completed a non-pit constrained NI43-101 historic resource with a 0.1 g/t Pd cut-off at Haukiaho comprising 23.2 million tonnes grading 1.51 g/t Pd_Eq (0.31 g/t Pd, 0.12g/t Pt, 0.10 g/t Au, 0.21% Cu, and 0.14% Ni) (See news release August 12, 2019, and May 7, 2020) (Figure 2). 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.

QA/QC

The Phase I drilling program was carried out under the supervision of Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company.

Drill core samples were split using a rock saw by Company staff, with half retained in the core box and stored indoors in a secure facility, in Taivalkoski, Finland. The drill core samples were transported by courier from the Company's core handling facility in Taivalkoski, Finland, to ALS Global ("ALS") laboratory in Outokumpu, Finland. ALS, is an accredited lab and are ISO compliant (ISO 9001:2008, ISO/IEC 17025:2005). PGE analysis was performed using a 30 grams fire assay with an ICP-MS or ICP-AES finish. Multi-element analyses, including copper and nickel were analysed by four acid digestion using 0.25 grams with an ICP-AES finish.

Certified standards, blanks and crushed duplicates are placed in the sample stream at a rate of one QA/QC sample per 10 core samples. Results are analyzed for acceptance at the time of import. All standards associated with the results in this press release were determined to be acceptable within the defined limits of the standard used

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, platinum-group-elements ("PGE"), copper, nickel exploration and development company. Its assets consist of the Läntinen 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 3,100-hectare project targeting PGE-rich disseminated and massive sulphide in a highly productive Proterozoic mid-continent rift.

The Kaukua deposit of the LK project hosts a pit-constrained resource of 635,600 Pd_Eq ounces of Indicated Resources grading 1.80 g/t Pd_Eq* ("palladium equivalent") contained in 11 million tonnes (@ 0.81g/t Pd, 0.27g/t Pt, 0.09g/t Au, (1.17g/t PGE), 0.15% Cu & 0.09% Ni), and 525,800 Pd_Eq ounces of Inferred Resources grading 1.50 g/t Pd_Eq contained in 11 million tonnes (@ 0.64g/t Pd, 0.20g/t Pt, 0.08g/t Au (0.92g/t PGE), 0.13% Cu, & 0.08% Ni), (see press release September 9, 2019).

*Pd_Eq is calculated using the following 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.

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

For further information contact:
Derrick Weyrauch, President & CEO
Email: info@palladiumoneinc.com

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