Pampa Metals Drilling Confirms Porphyry System at the Buenavista Target, Chile

VANCOUVER, June 5, 2023 - Pampa Metals Corp. ("Pampa Metals" or the "Company") (CSE:PM)(FSE:FIRA)(OTCQB:PMMCF) is pleased to provide an update on the progress of diamond drilling designed to test coincident geological, geochemical, and geophysical anomalies on its 100% owned Buenavista target located along the world's pre-eminent porphyry copper belt in northern Chile.

Highlights - Buenavista Target Drilling:

• Three diamond drill holes for 1,957 metres completed. Core processing in progress with assay results expected by end June.
• Hydrothermal alteration and mineralisation indicative of the upper epithermal, in transition to a porphyry copper system (or systems), was intersected in all three holes.
• Intermediate argillic and sericite alteration typical of the peripheral parts of porphyry systems and associated with several narrow intercepts of copper sulphides comprising enargite, some chalcopyrite, and traces of chalcocite occur. Pyrite is common as disseminations and in breccias, with molybdenite common in hole BV01-2023. Quartz veinlets are variable, but intense on occasions. Narrow sulphide-rich breccias and quartz-sulphides veins, together with narrow, granodiorite dykes, occur in holes BV02-2023 and BV03-2023.
• Current interpretation is that the dacite porphyry and quartz-veinlet stockwork zone targeted by BV01-2023 represents a separate porphyry centre to the quartz-sulphide breccia zone including early-stage inter-mineral dykes cut by holes BV02-2023 and BV03-2023.
• A main-stage inter-mineral porphyry source is interpreted to lie beneath, or to the side of holes BV02-2023 and BV03-2023, with a separate source likely to the north of BV01-2023.

Commenting on the results, Joseph van den Elsen, President and CEO, stated:

"The Buenavista target displays many characteristics indicative of a large, fertile, Tertiary aged, porphyry copper-molybdenum-gold system and we are very pleased to have successfully demonstrated this potential in the recently completed three-hole scout drilling program. Detailed geological logging and sampling together with complementary studies including petrography of key alteration types is in progress, and we look forward to updating the market following receipt and interpretation of assays."

Buenavista Drilling Program:

• Drill hole BV01-2023, collared on the dacite porphyry with quartz veinlet stockwork in the Buenavista porphyry alteration zone, cut the previously dated Early Tertiary (+/- 60 Ma) dacite porphyry intrusion with variable quartz veining and visible pyrite-molybdenite disseminations, prior to entering Paleozoic granite country rocks with early porphyry phase quartz-magnetite veining and breccias at depth. BV01-2023 was completed to a vertical depth of 553m. As BV01-2023 exited the dacite porphyry at 475m depth, it is interpreted that the porphyry is tilted to the north with its likely roots coincident with an IP chargeability anomaly which is located 750m north of the hole collar position.
• Drill hole BV02-2023 was collared 450m west of hole BV01-2923 on a mapped quartz-sulphide breccia zone with visible copper oxides at surface. Drilling intersected Paleozoic aged rhyolite volcanic and granite batholithic rocks crosscut by a series of quartz-sulphide (pyrite-enargite) veins and thin granodiorite dykes with porphyry style quartz veining, pervasive phyllic alteration, and visible pyrite-chalcopyrite (+/- molybdenite) disseminations. This series of dykes and veins is currently interpreted to represent a Tertiary-aged, early inter-mineral phase of a porphyry system. Hole BV02-2023 was completed to a down-hole depth of 670m, angled at 60° to the southwest.
• Drill hole BV03-2023 was collared from the same platform as hole BV02-2023 and drilled at a steeper angle to target the interpreted source of the narrow granodiorite dykes intersected in hole BV02-2023. Similar geology to that seen in hole BV02-2023 was intersected. Hole BV03-2023 was completed to a down-hole depth of 734m, angled at 80° to the southwest.

Buenavista - Drill Hole BV02-2023

Quartz Vein with Coarse Disseminations of Pyrite-Chalcopyrite

Hydrothermal Breccia with Sulphides and Sericite

Buenavista Target - Section 7205000N - Showing Completed Drill Holes over IP Chargeability, 3D Magnetics, and Geological Interpretation (ordered top-bottom)

About the Buenavista Target

• Buenavista displays characteristics indicative of a large, fertile, Tertiary aged, porphyry copper-molybdenum-gold system, located along the world's preeminent porphyry copper belt in northern Chile;
• Intense, sub-cropping, quartz-veinlet stockwork occurs at Buenavista within a dacite porphyry and interpreted phreatomagmatic breccia complex, flanked by a quartz-sulphide breccia to the west and skarn-type mineralization to the east, and is coincident with key geochemical and geophysical anomalies;
• Anomalous soil and trench geochemical values of copper, molybdenum, and gold (and other pathfinders) in a heavily supergene leached desert environment, coincide with mapped geology, hydrothermal alteration, magnetic and induced polarisation (IP) geophysical anomalies, and other complementary data including 3D modeling and age dating;
• The Buenavista Target footprint comprising geological, geochemical, and geophysical anomalies is approximately 1.5 km E-W by 1 km N-S along a significant geological structure;
• The presence of several other geophysical anomalies under post-mineral covered portions of the broader project is suggestive of a potential "cluster" of porphyry copper-molybdenum-gold systems, a characteristic typical of some major porphyry copper districts in Chile and worldwide.

Buenavista - Location Along Domeyko Cordillera Porphyry Copper Belt

ABOUT PAMPA METALS

Pampa Metals is a Canadian company listed on the Canadian Stock Exchange (CSE:PM), Frankfurt (FSE:FIRA) and OTC (OTCQB:PMMCF) exchanges which wholly owns a 47,400 hectare portfolio of seven projects highly prospective for copper, molybdenum and gold located along proven and highly productive mineral belts in Chile, one of the world's top mining jurisdictions. The Company is actively advancing its projects through systematic exploration and drill testing of the highest priority targets, with a current focus on the Buenavista Project.

The Company's vision is to create significant value for shareholders and stakeholders through the application of its technical and commercial expertise towards exploring for a major copper discovery along the prime mineral belts of Chile. For more information, please visit Pampa Metals' website at www.pampametals.com.

Qualified Person

Technical information in this news release has been approved by Mario Orrego G, Geologist and a Registered Member of the Chilean Mining Commission and a Qualified Person as defined by National Instrument 43-101. Mr. Orrego is a consultant to the Company.

Note: The reader is cautioned that Pampa Metals' projects are early-stage exploration projects, and reference to existing mines and deposits, or mineralization hosted on adjacent or nearby properties, is not necessarily indicative of any mineralization on Pampa Metals' properties.

ON BEHALF OF THE BOARD
Joseph van den Elsen | President & CEO

INVESTORS CONTACT
Joseph van den Elsen | President & CEO
joseph@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" and similar expressions, or that events or conditions "will" or "may" occur. These statements are subject to various risks. 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.