Toronto, Ontario–(Newsfile Corp. – October 6, 2020) – The first assay results from the resumed Phase I drill program at the LK Project in Finland has retuned a wide zone, of shallow, high-grade palladium mineralization in the Kaukua South Extension, said Palladium One Mining Inc. (TSXV: PDM) (FSE: 7N11) (OTC Pink: NKORF) (“Palladium One” or the “Company”) today. Hole LK20-014 returned a core zone of 72.0 m at 1.96 g/t palladium equivalent (Pd_Eq)* within a wider zone of 145.5m at 1.26 g/t Pd_Eq.

Key highlights:

• Continuity between holes LK20-006 and LK20-014 demonstrates potential to rapidly add tonnes and thereby scale to existing NI 43-101 resources.
• Shallow mineralization developing at scale within the Kaukua South Zone.
• Starting at only 13.5 meters downhole, hole LK20-014 returned 145.5 m at 1.26 g/t Pd_Eq. with a core zone of 72 m at 1.96 g/t Pd_Eq.
• Hole LK20-014 is 100 m east of hole LK20-006 which returned 166.7 m at 1.27 g/t Pd_Eq. with a core zone of 63.4 m at 1.88 g/t Pd_Eq.

“Results from the Kaukua South Zone continue to indicate that the Kaukua area hosts the footprint of a large-scale, shallow, mineralized system displaying continuity,” said Derrick Weyrauch, President and Chief Executive Officer.

Hole LK20-014 is 100 m east of hole LK20-006 (see news release dated August 11, 2020), which returned nearly identical grades and widths (Table 1) and is 800 m east of hole KAU-08-035, which returned a core zone of 33 m at 1.90 g/t Pd_Eq (Figure 1).

These consistent core intercepts validate the Company’s thesis that there are more tonnes than initially thought at Palladium One’s LK Project in Finland. The shallow and high-grade core intercepts provide the opportunity to significantly increase the existing NI 43-101 Kaukua open pit resource.

Phase 1 Drill Program Update
The Company continues to log and sample the drill core from the recently completed drilling program. Fourteen holes totalling 2,566 m were completed during the resumed program in August and September, bringing the total Phase I exploration drilling program to 26 holes totalling 4,490 m.

Table 1. Resumed Phase 1 Drill Results

Zone	Hole	From (m)	To (m)	Width (m)	Pd_Eq g/t*	PGE g/t (Pd+Pt +Au)	Pd g/t	Pt g/t	Au g/t	Cu %	Ni %
Kaukua	LK20-006**	43.8	210.5	166.7	1.16	0.58	0.39	0.14	0.05	0.09	0.10
South	Upper Zone	43.8	62.0	18.3	1.27	0.33	0.21	0.05	0.07	0.13	0.16
	Core Zone	95.0	158.4	63.4	1.88	1.06	0.72	0.26	0.08	0.13	0.14
	Inc.	95.0	116.5	21.6	2.36	1.25	0.83	0.31	0.11	0.18	0.19
	Lower Zone	188.5	210.5	22.0	1.50	0.87	0.60	0.20	0.07	0.11	0.10
	Inc.	188.5	198.8	10.4	2.22	1.26	0.85	0.29	0.11	0.18	0.15

Zone	Hole	From (m)	To (m)	Width (m)	Pd_Eq g/t*	PGE g/t (Pd+Pt +Au)	Pd g/t	Pt g/t	Au g/t	Cu %	Ni %
Kaukua	LK20-014	13.5	159.0	145.5	1.28	0.53	0.35	0.13	0.06	0.11	0.13
South	Upper Zone	14.5	31.0	16.5	0.97	0.25	0.15	0.05	0.05	0.08	0.13
	Core Zone	87.0	159.0	72.0	1.96	0.94	0.62	0.23	0.09	0.17	0.17
	Inc.	96.2	151.0	54.8	2.20	1.09	0.72	0.27	0.10	0.20	0.18
	Inc.	119.1	128.0	19.0	2.80	1.39	0.91	0.35	0.13	0.27	0.22
	Inc.	119.1	122.0	3.0	4.35	2.24	1.46	0.54	0.23	0.46	0.31

** Includes 16.25m of unsampled core given a zero grade.
*** Reported widths are “drilled widths” not true widths.
***** Grey Italicised values are previously released (see press release August 11, 2020).

*Palladium Equivalent
Palladium equivalent (Pd_Eq) is calculated using US$1,100/oz for palladium, US$950/oz for platinum, US$1,300/oz for gold, US$6,614/t for copper and US$15,432/t for nickel as used in the Company’s 2019, 43-101 mineral resource estimate on the Kaukua Deposit (see press release September 9, 2019).

Figure 1
This figure shows the greater Kaukua Area, the NI 43-101 compliant Kaukua Open Pit resource, Murtolampi and Kaukua South zones. The new drill defined three-kilometer eastern extension of the Kaukua South zone is shown with the resumed Phase I drill holes labelled in red.