Palladium One Expands High-Grade at Kaukua South, Drills 47 Meters @ 2.6 g/t Pd_Eq, Including 12 Meters @ 4.2 g/t Pd_Eq

Toronto, March 18, 2021 - Drilling has returned significant PGE (Platinum Group Element) grades of 47 meters at 2.6 g/t Pd_Eq, including 12 meters at 4.2 g/t Pd_Eq. (Hole LK21-045), defining a high-grade core at Kaukua South on the Läntinen Koillismaa ("LK") PGE-Ni-Cu project in Finland, said Palladium One Mining Inc. (TSXV: PDM) (FSE: 7N11) (OTCQB: NKORF) ("Palladium One" or the "Company") today.

Thus far, 34 holes have been drilled as part of the 17,500-meter Phase II Resource Definition drill program at Kaukua South, including today's results 22 have been released, while results for 12 holes are pending. Drilling has been strategically undertaken to define mineralization from surface to a depth of 200 metres, leaving mineralization open at depth, across the known 4-kilometer strike length of Kaukua South. In total 6,404-meters have been drilled to date as part of the Phase II program at Kaukua South, while an additional 860-meters (6 holes) of regional exploration has been undertaken.

Derrick Weyrauch, President and CEO of Palladium One said, "Drilling at Kaukua South continues to intersect impressive grades and widths, thereby proving up the known four-kilometer strike length of Kaukua South. Induced Polarization (IP) surveys have been started to expand the Kaukua South strike length by up to three kilometers. With robust drill results thus far and the potential to increase the Kaukua South strike length to seven kilometers we are optimistic that, in addition to our existing Kaukua National Instrument 43-101 pit constrained resource, a new multi-million ounce resource is well within our reach."

"In addition to our Phase II Kaukua South drill program and to take advantage of winter drilling conditions, 2,000 meters (12 holes) were recently drilled on the Haukiaho zone. This drilling represents completion of the infill campaign that was launched in February 2020 and suspended in March 2020 due to Covid-19. The drill program was designed to provide additional data in advance of a NI 43-101 resource estimate. Assay results are pending," said Weyrauch.

Highlights

• Drilling continues to demonstrate continuity of near surface open pit grades and widths at Kaukua South.
• Core zone of 11.6 meters grading 4.21 g/t Palladium equivalent ("Pd_Eq") within 47.4 meters grading 2.59 g/t Pd_Eq. in hole LK21-045, starting 123 meters down hole.
• Core zone of 16.5 meters grading 2.52 g/t Pd_Eq, within 52.7 meters grading 1.53 g/t Pd_Eq in hole LK21-046, starting 66 meters down hole.
• 2,000 meters of drilling completed on the Haukiaho Zone to upgrade the historic resource to National Instrument 43-101 standards.

Kaukua South Infill Drilling

Kaukua South infill drilling continues to demonstrate consistent near surface open pit grades and widths. A total of 22 holes from the Phase II infill drill program on Kaukua South have now been released with intersections such as 53 meters at 2.1 g/t Pd_Eq, in hole LK20-028 (see press release January 18, 2021) and 33 metres grading 2.0 g/t Pd_Eq in hole LK20-034 (see news release March 11, 2021). These 22 holes cover approximately 1.3 kilometers of the Kaukua South Zone and have returned similar widths and grades to those in the Kaukua NI 43-101 Open Pit resource estimate. (Figure 1 and 2).

IP Survey Underway

Induced Polarization ("IP") surveys have proven to be highly successful at outlining palladium-rich disseminated copper-nickel sulphide mineralization on the LK Project. The discovery of Kaukua South in an overburden covered area with no previous drilling was a direct result of the Company's 2020 IP survey.

The current IP survey is well advanced, with the western grid anticipated to be completed within the next week. The Company believes there is potential to extend the currently Kaukua South IP chargeability anomaly from the currently defined four to over seven kilometres of strike length (Figure 1).

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. Holes labels in red form part of this release.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6502/77689_d2649b15542ec8be_001full.jpg

Figure 2. Kaukua South long-section looking north, holes labelled in red form part of this release.

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/6502/77689_d2649b15542ec8be_002full.jpg

Figure 3. Cross Section showing Kaukua South infill holes LK20-027, 028, 045, looking west.

To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/6502/77689_d2649b15542ec8be_003full.jpg

Haukiaho Drill Program

The Haukiaho Zone is located 15 kilometers to the South of Kaukua. In late February and early March 2021, the Company completed 2,000 meters (12 holes) of infill drilling to enable the historic Haukiaho resource to be upgraded to NI 43-101 compliant standards. The Haukiaho Zone which hosts the historic Haukiaho deposit, is part of a 17-kilometre-long trend (Figure 4.), and prior to the discovery of the Kaukua South Zone had a top priority for the Company and it remains a significant asset of the greater LK project.

In March 2020, before being forced to shut down due to the first wave of the Covid-19 pandemic, the Company completed 3 holes on the Haukiaho Zone returning a core zone of 34.2 metres grading 2.09 g/t Pd_Eq. within 83.3 metres grading 1.27 g/t Pd_Eq. in hole LK20-010 (see news release September 15, 2020).

In February 2020, the Company completed an IP survey covering five-kilometres of the Haukiaho Trend (see news release May 7, 2020). This survey identified three strong chargeability anomalies, one of which is associated with the core of the historic Haukiaho deposit, however the other two are in areas of sparse historic drilling. The eastern most of these three anomalies was prospected by the Company in 2019, returning up to 3.3 g/t Pd_Eq. (0.51% Cu, 0.33% Ni, 0.56 g/t Pd, 0.18 g/t Pt, and 0.21 g/t Au), (see news release August 12, 2019).

Historic Haukiaho Resource Estimates

In 2013, Finore Mining Inc. completed a non-pit constrained NI 43-101 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). This resource encompassed widely spaced drilling with a focus on maximizing tonnage, not grade. An earlier historic resource estimate completed by Outokumpu in the 1980's covered a much larger part of the Haukiaho trend and 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.

Figure 4. LK Project location map showing 43-101 compliant Kaukua deposit and historic Haukiaho resource along with 2020 IP grids (blue lines) and current 2021 IP grid areas (black boxes). Yellow lines represent Exploration Permits, red lines represent Exploration Reservations held by the Company.

To view an enhanced version of Figure 4, please visit:
https://orders.newsfilecorp.com/files/6502/77689_d2649b15542ec8be_004full.jpg

Figure 5. Haukiaho IP chargeability and 2020 DDH location map.

To view an enhanced version of Figure 5, please visit:
https://orders.newsfilecorp.com/files/6502/77689_d2649b15542ec8be_005full.jpg

Table 1: Phase II infill drill results to date on Kaukua South

* Reported widths are "drilled widths" not true widths.
** Orange shaded values previously released (see press release January 18, 2021 and March 11, 2021).

*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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/77689