Palamina's Colt Silver Spin Out Receives FTA Environmental Permit for the Galena Silver Copper Project in Peru

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.

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 Project 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.

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).