Pampa Metals Completes $1.136 Million First Tranche of Private Placement to Drill Block 4 Discovery

VANCOUVER, March 21, 2022 - Pampa Metals Corp. ("Pampa Metals" or the "Company") (CSE:PM) is pleased to announce that it has closed the first tranche of a private placement offering of 3,786,700 units ("Units") at a price of $0.30 per Unit for gross proceeds to the Company of $1,136,100. The Company will continue to raise funds with a total funding target of $4.0 million by issuing a total of 13,333,333 Units.

"The Company currently has a very active exploration campaign during this strong copper market. Pampa Metals has one project being drilled by JV partner Austral Gold and based on recent results, Block 4 is the immediate focus for Pampa Metals to start its own, new drilling program.", stated A. Paul Gill, CEO.

Block 4 Discovery

Pampa Metals completed six trenches totalling 2.3 km, of which 5 trenches successfully exposed bedrock, at its Buenavista target on its Block 4 project in November-December 2021 (see news release dated February 8, 2022). The trenching was directed towards improving exposures of porphyry type quartz veinlets and copper oxide occurrences associated with a poorly exposed central porphyritic intrusion, which is spatially coincident with a magnetic anomaly detected by Pampa Metals' ground magnetics survey. The magnetic anomaly directly led to the discovery of the stockwork veined porphyry intrusion by careful follow-up geological fieldwork. The area investigated by trenches at Buenavista measures approximately 700m north-south and 900m east-west, and the core porphyry and quartz-veinlet stockwork zone has not been trenched or drill tested historically. Encouraging assay results from the trenching program were recently published (see news release dated March 15, 2022), with highly anomalous copper, moly, and gold values.

Details of Private Placement

Each Unit of $0.30 is comprised of one common share and one-half of one common share purchase warrant of the Company. Each whole warrant (a "Warrant") is exercisable into one common share of the Company at an exercise price of $0.50 per share for a period of 24 months from the closing date. The Company may reduce the exercise period of the Warrants to 30 days from the date the Company provides notice to the warrant holders that the weighted average trading price of the common shares of the Company on the Canadian Securities Exchange is $0.90 or greater for a period of 10 consecutive trading days.

Proceeds of the Private Placement will be used for the ongoing work programs on the Company's Chilean projects, including drilling, and for general corporate purposes.

In connection with the Private Placement, the Company will pay finders fees of 8% in cash and 8% in finder warrants from the sale of Units to third parties sourced by the finders. Each finder's warrant will entitle the holder to purchase one common share of the Company at a price of $0.50 per share for a period of 24 months from the closing date.

An insider of the Company purchased 700,000 Units for gross proceeds of $210,000. The participation of an insider of the Company in the private placement constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to section 5.5(b) and section 5.7(1)(b) as the fair market value of the insider participation is not more than 25% of the Company's market capitalization.

Securities sold in the private placement will be subject to a four month hold period under Canadian securities laws and the policies of the Canadian Securities Exchange.

ABOUT PAMPA METALS

Pampa Metals is a Canadian company listed on the Canadian Stock Exchange (CSE:PM) as well as the Frankfurt (FSE:FIRA) and OTC (OTCQB®:PMMCF) exchanges. Pampa Metals owns a highly prospective, wholly owned, 62,000-hectare portfolio of eight projects for copper and gold located along proven mineral belts in Chile, one of the world's top mining jurisdictions. The Company is actively progressing four of its projects, including completed and planned drill tests, and has two additional projects optioned to Austral Gold Ltd., with Austral already drill testing its first target on Pampa Metals' ground. The Company has also recently signed an agreement with VerAI Discoveries Inc. giving Pampa Metals access to the latest in artificial intelligence technology in relation to mineral exploration, as well as a further 18,700 hectares of highly prospective terrain in the core of the highly productive mineral belts of northern Chile.

The Company has a vision to create value for shareholders and all other stakeholders by making a major copper or gold discovery along the prime mineral belts of Chile, using the best geological and technological methods. For more information, please visit Pampa Metals' website www.pampametals.com.

ON BEHALF OF THE BOARD

A. Paul Gill | Chief Executive Officer

INVESTORS CONTACT
Gurdeep Bains
gurdeep@pampametals.com
www.pampametals.com

Neither the CSE nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING STATEMENT

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Pampa Metals expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "indicate" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. These include statements regarding our future exploration plans and results of existing plans. These statements are subject to various risks, including that results will not be as anticipated, or that timing may be impacted by restrictions on travel and work imposed due to the Covid-19 pandemic. Although Pampa Metals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guaranteeing of future performance and actual results may differ materially from those in forward-looking statements.

SOURCE: Pampa Metals Corp.