Palamina spins out Colt Silver, receives FTA permit at Galena

Toronto, Ontario--(Newsfile Corp. - August 28, 2026) - Palamina Corp. (TSXV: PA) (OTCQB: PLMNF) holds a 100% interest in its Canadian subsidiary, Colt Silver Corp. ("Colt") which through its Peruvian subsidiary, holds a 100% interest in the Galena Silver Copper Project. On September 24, 2026, Palamina is seeking shareholder approval at its annual and special meeting to spin out Colt Silver Corp. as a standalone public company. Subject to approval from Palamina shareholders and the TSX Venture Exchange, Colt is expected to commence trading in October of 2026 on the TSX Venture exchange under the symbol COLT.

Colt has received its Ficha Técnica Ambiental (FTA) environmental approval from the Peruvian Ministry of Energy and Mines (MINEM) for its flagship Galena Silver Copper project located in the Puno region of Peru. The FTA authorizes the construction of up to 20 drill pads. Colt is fully funded and there are no limits to the number of holes that may be drilled from each drill pad.

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"The Galena Silver Copper Project has never been drilled and sits at the intersection of two important regional trends: a northeast-trending belt of Carbonate Replacement Deposits ("CRD") and a southeast-trending belt of porphyry copper deposits. Inaugural drilling will test the CRD potential in the areas of the historic Santa Rosa, Gaspar and Chaparro mines. An initial 2,500m drilling program is being scheduled to start in October of 2026.", commented Andrew Thomson, President of Colt Silver.

Colt is well positioned with four projects in the historic Santa Lucia district. They included the Galena (8,200 Ha), Volcano (6,812 Ha), Esperanza (60.75 Ha) and the Sora (3,600 Ha) Projects.

Colt's Volcano Projec t lies between the producing Tacaza copper-silver mine and the Berenguela copper-silver-manganese project of Aftermath Silver Ltd ("Aftermath") (AAG). The Volcano concessions also surround the historic Santa Barbara silver-copper mine. Colt's Esperanza Project lies within Aftermath's Berenguela claim block and is located approximately ~500m southeast of their current resource area. Berenguela, Santa Barbara and Colt's Volcano, Esperanza and Galena Projects lie within the northeast-trending belt of CRDs.

Colt's Sora Project is contiguous to the Pinaya copper-gold Project. On April 27, 2026, Panam Copper Corp. ("Panam") purchased the Pinaya copper-gold project for US$11 million from Ivanhoe Electric ("Ivanhoe") (IE). In 2027, Panam Copper is reportedly planning to drill deep targets defined by Ivanhoe's Typhoon induced polarization ("IP") study to test for a larger porphyry source at depth beneath the current copper resource, which outcrops at surface. Pinaya and Colt's Sora and Galena Projects lie within the regional southeast-trending belt of porphyry copper deposits.

Qualified Person

The technical information herein has been reviewed and approved by Steve T Priesmeyer, C.P.G., a Qualified Person as defined by National Instrument 43-101. Mr. Priesmeyer acts as a consultant to Palamina.

About Palamina

Palamina is a mineral exploration company with 6 gold projects in the Puno Orogenic Gold Belt in southeastern Peru and a separate Canadian 100% owned subsidiary, Colt Silver Corp. with seven silver copper assets across southeastern, northeastern, and central Peru. Colt Silver Corp. is being spun out into its own standalone public company to unlock additional shareholder value. Palamina trades on the TSX Venture Exchange (PA) and the OTCQB (PLMNF).

On Behalf of the Board of Directors

Andrew Thomson, President Phone: (416) 204-7536 or visit www.palamina.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements include, but are not limited to, the use of proceeds of the Offering and the Company's future business plans. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. A more complete discussion of the risks and uncertainties facing the Company appears in the Company's continuous disclosure filings, which are available at www.sedar.com.

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TMX Newsfile

August 28, 2026 - 5:30 AM PDT

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