Palladium One Reports Infill Drill Results Between the Kaukua Open Pit Resource and Kaukua South, Finland

Highlights

• A third fault block, herein referred to as the Gap Zone, has been identified with additional drill testing between the current Kaukua Open Pit Resource and the Kaukua South Zone.
• This Gap Zone is an important area for future resource definition, as it could connect Kaukua and Kaukua South into one larger, more efficient, Open Pit mine.
• 2.2 g/t Palladium Equivalent (Pd_Eq) over 4.4 meters, within 1.3 g/t Pd_Eq over 21.7 meters, in hole LK21-109 in the Gap Zone.
• 1.7 g/t Pd_Eq over 6.3 meters, within 1.3 g/t over 27.8 meters, in hole LK21-116 in the Gap Zone.
• 1.8 g/t Pd_Eq over 17.0 meters, within 1.4 g/t over 53.1 meters in hole LK21-117 in Kaukua South.

Toronto, January 20, 2022 - Infill drilling in the Gap Zone has resulted in a better understanding and a new geological model for the area. Gap Zone drill results include 2.2 g/t Pd_Eq over 4.4 meters, within 1.3 g/t Pd_Eq over 21.6 meters, in hole LK21-209 starting at 138 meters down hole (Figure 1), said Palladium One Mining Inc. (TSXV: PDM) (OTCQB: NKORF) (FSE: 7N11) ("Palladium One" or the "Company").

Derrick Weyrauch, President and CEO, commented: "We have made significant progress infilling the area between the Kaukua Open Pit Resource and Kaukua South. Though Gap Zone mineralization is thinner, it could play a significant role in joining Kaukua and Kaukua South into one larger and more efficient Open Pit mine."

The Greater Kaukau area is now subdivided into three blocks separated by northeast trending faults (Figure 1, 2 and 3), Kaukua Open Pit, Gap Zone, and Kaukua South. These blocks, though closely related geologically, differ in their orientation, and thickness of mineralization. Kaukua Open Pit and Kaukua South both dip to the south and possess core zones with thickness in excess of 100 meters, whereas the Gap Zone, which dips west, demonstrates mineralization thicknesses in the 10-20 meter range. All three fault blocks contain Upper Zone mineralization while the width separating the Upper and Lower Zones varies in each fault block.

Figure 1. Historic and current drilling in the Kaukua area having a drill data cut-off date of September 30, 2021 (hole LK21-137), assays have been received for holes up to LK21-120, the remainder are pending. Background is Induced Polarization ("IP") Chargeability.

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Figure 2. Cross sections showing holes LK21- 112, 113, 114, 117 and LK20-042 in Kaukua South and Gap Zone.

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Figure 3. Inclined Isometric view looking north of the 3D geological model of the Greater Kaukua Area showing the >0.3g/t Pd_Eq wireframe shell (purple) as well as major later dykes and faults separating the Kaukua, Gap, and Kaukua South Zones. All drill holes, historic and those drilled by the Company are shown in black.

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Table 1. LK Project, select Kaukua Drill Hole Results

* Pd_Eq calculated using in-situ values and prices from the 2021 NI43-101 Haukiaho Mineral Resource Estimate; $1,600/oz Pd, $1,100/oz Pt, $1,650/oz Au, $3.50 Cu, and $7.50/lb Ni, and $20/lb Co. Limited historical metallurgical work on the Kaukua Deposit indicates final recoveries in the range of 73% Pd, 56% Pt, 78% Au, 91% Cu, 48% Ni and 48% Co and are used in the Estimated Recovered Pd_Eq grade calculation.

Palladium Equivalent

The Company is calculating Palladium equivalent using US$1,600 per ounce for palladium, US$1,100 per ounce for platinum, US$1,650 per ounce for gold, US$3.50 per pound for copper, US$7.50 per pound for nickel, and $20 per pound cobalt consistent with the calculation used in the Company's September 2021 NI 43-101 Haukiaho Resource Estimate.

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. (TSXV: PDM) is focused on discovering environmentally and socially conscious Metals for Green Transportation. A Canadian mineral exploration and development company, Palladium One is targeting district scale, platinum-group-element (PGE)-copper-nickel deposits in leading mining jurisdictions. Its flagship project is the Läntinen Koillismaa (LK) Project in north-central Finland, which is ranked by the Fraser Institute as one of the world's top countries for mineral exploration and development. LK is a PGE-copper-nickel project that has existing Mineral Resources. PDM's second project is the 2020 Discovery of the Year Award winning Tyko Project, a high-grade sulphide, copper-nickel project located in Canada. Follow Palladium One on LinkedIn, Twitter, and at www.palladiumoneinc.com.

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 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.

Information set forth in this press release may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in palladium and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to Canadian and U.S. Shareholders. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

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