Palladium One Expands 2021 Drill Programs to 27,000 Meters, Exploration Budget to $11.5 Million and Provides LK Project Update

Toronto, March 3, 2021 - Planned exploration activities in 2021 have been expanded at both the palladium dominant Läntinen Koillismaa ("LK") PGE-Ni-Cu project in Finland and the Tyko Nickel-Copper project in Ontario, Canada, said Palladium One Mining Inc. (CSE: BULL) (OTCQB: NKORF) (FSE: DCR1) ("Palladium One" or the "Company") today.

Derrick Weyrauch, President and CEO of Palladium One said, "A cash balance of $19.7 allows for the acceleration of exploration activities and expansion of the initial 2021 exploration budget to $11.5 million. The expanded program in Finland lets us complete resource definition drilling at the Kaukua South and Haukiaho zones while also initiating drilling at potential eastern and western extensions of Kaukua South. At the Tyko project, our expanded program will be centered on new target development, infill drilling, and expansion of known high-grade nickel mineralization at the Smoke Lake zone."

Expanded 2021 Program Details

• Initial budget $11.5 million.
• Planned drilling 27,000 meters (Finland - 23,000 meters, Canada - 4,000 meters)
• Planned drilling in Finland includes completion of the 17,500-meter Phase II drill program in preparation of an initial NI43-101 resource estimate at the Kaukua South zone (H1 2022), 2,000 meters of infill drilling at the Haukiaho zone in preparation for an initial NI43-101 resource estimate and 6,500 meters of reconnaissance drilling for potential strike length expansions at Kaukua South.
• Induced Polarization and Magnetic surveys on potential west and eastern strike extension of Kaukua South.
• Phase II metallurgical testing at LK project.
• Borehole Electromagnetic ("BHEM"), horizontal loop EM and regional airborne Magnetic and EM surveys at the Tyko project.
• Expected cash balance in excess $8 million at yearend, thereby providing sufficient funding for additional 2021 program expansions as may be appropriate, and program extension into 2022.

The Company is also planning to undertake regional exploration work during 2021 including soil surveys and mapping and may further modify its 2021 plans as results are received.

Exploration Update - Finland

In late February, assay results for holes LK21-034 through 036 from the Kaukua South zone were received but are currently under review due to assay results being above three standard deviations on QA/QC standards for nickel and copper analysis. These holes will be released once QA/QC issues have been resolved.

Additional drilling at Murtolampi continues to delineate significant at surface mineralization, indicating potential for a valuable satellite pit two kilometers northeast of the Kaukua deposit. Three holes were drilled on the Murtolampi zone (LK20-039 through 041) and returned at or near surface mineralization, including drill hole LK20-041 which returned 64.0 metres at 1.38 g/t Pd_Equivalent ("Pd_Eq."), from 1.5 meters down hole and having a core interval of 6.0 m at 3.19 g/t Pd_Eq starting 54.5 meters down hole.

The core Murtolampi zone has now been delineated over 150 meters and is interpreted to extend over 600 meters (Figure 1 and 2). with intercepts of up to 78.5 metres at 2.0 g/t Pd_Eq. in hole LK20-026, (press release November 16, 2020).

Murtolampi remains open for expansion to the southwest. Induced Polarization and Magnetic surveys suggest that favourable peridotite hosts rocks continue toward hole LK20-024 which returned 3.0 m at 1.41 g/t Pd_Eq. within 21.0 m at 0.85 g/t Pd_Eq. (press release November 16, 2020) (Figure 2). Further drilling is planned to infill this area.

Holes LK21-037 and LK21-038 were reconnaissance holes drilled to test IP and/or magnetic anomalies away from known mineralized areas. Hole LK21-037 intersected mafic to intermediate volcanic rocks, and LK21-038 granophyric altered felsic volcanic rocks. Neither hole intersected the target mafic-ultramafic rocks of the Koillismaa Complex.

Figure 1. Greater Kaukua area plan map, showing current NI 43-101 Kaukua Deposit conceptual pit outline (dashed yellow), Kaukua South and Murtolampi IP chargeability anomalies, and Palladium One drill hole locations.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6502/75891_8a866bd274a7ba99_001full.jpg

Figure 2. Murtolampi Long section looking northwest, showing IP Chargeability isoshells and Pd_Eq. grade, resumed Phase I drill holes labelled in red.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6502/75891_8a866bd274a7ba99_002full.jpg

Table 1: Murtolampi and Reconnaissance Phase 2 Drill Results

* Reported widths are "drilled widths" not true widths.
** Orange shaded values previously released (see press release August 25, 2020, November 16, 2020)

*Palladium Equivalent
Palladium equivalent is calculated using US$1,100 per ounce for palladium, US$950 per ounce for platinum, US$1,300 per ounce for gold, US$6,614 per tonne for copper, and US$15,4332 per tonne for nickel. This calculation is consistent with the calculation in the Company's September 2019 NI 43-101 Kaukua resource estimate.

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 an exploration company targeting district scale, platinum-group-element (PGE)-copper nickel deposits in Finland and Canada. Its flagship project is the Läntinen Koillismaa or LK Project, a palladium dominant platinum group element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world's top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 kilometers of favorable basal contact and building on an established NI 43-101 open pit resource.

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

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

Neither the TSX Venture Exchange nor its Market Regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release includes "forward-looking information" that is subject to a few assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding listing of the Company's common shares on the TSXV are subject to all of the risks and uncertainties normally incident to such events. Investors are cautioned that any such statements are not guarantees of future events and that actual events or developments may differ materially from those projected in the forward-looking statements. Such forward-looking statements represent management's best judgment based on information currently available. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions and general business conditions. Such forward-looking information reflects the Company's views with respect to future events and is subject to risks, uncertainties and assumptions, including those set out in the Company's annual information form dated April 29, 2020 and filed under the Company's profile on SEDAR at www.sedar.com. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.

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