Andrew Thomson Early Warning Press Release

Toronto, Ontario--(Newsfile Corp. - May 26, 2020) - Andrew Thomson (the "Acquiror") has today filed an early warning report (the "Early Warning Report") advising of his acquisition of an aggregate of 447,000 Units (the "Units") of Palamina Corp. (the "Company") pursuant to a private placement financing (the "Offering") at the price of $0.125 per Unit. Each Unit consists of one common share ("Common Share") and one half of one warrant (each a "Warrant"). Each whole Warrant is exercisable to acquire one Common Share at a price of $0.35 until May 25, 2022.

The Offering completed by the Company raised a total of $1,100,000 by the issuance of 8,800,000 Units at the price of $0.125 per Unit.

Upon completion of the Offering and the Acquiror's acquisition of an aggregate 447,000 Units of the Company, which when added to the securities previously held by the Acquiror decreased the Acquiror's overall percentage holdings in the Company representing approximately 8.4% of the outstanding common shares of Palamina on an undiluted basis and 9.7% on a partially diluted basis.

The Shares were purchased for investment purposes. The Acquiror has a long-term view of the investment and may acquire additional Shares of the Company either on the open market or through private acquisitions or sell the Shares on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

This news release is being issued as required by National Instrument 62-104 - Take-Over Bids and Issuer Bids and relates to the Company, whose head office is located at 145 King Street West, Suite 2870, Toronto, Ontario, M5H 1J8, and to the Acquiror. A copy of the Early Warning Report can be obtained at www.sedar.com under the Company's company profile, or by contacting Andrew Thomson at 145 King Street West, Suite 2870, Toronto, Ontario, M5H 1J8, telephone: (416) 204-7536.

Not for Distribution in the United States

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/56539