Canadian Palladium Resources Inc. Reports Complete Assay Results for First Ten Drill Holes at East Bull Palladium Project

Results include:

EB20-01 with 4.0 m at 8.15 g/t Palladium Equivalent (Pd-Eq);
EB20-03 with 3.0 m at 6.29 g/t Pd-Eq; and
EB20-07 with 3.0 m at 7.47 Pd-Eq.

These high-grade intervals are part of wider intervals of mineralization that include: 15.0 m at 2.69 g/t Pd-Eq in hole EB20-03; and 24.0 m at 2.14 g/t Pd-Eq in hole EB20-07.

Garry Clark P.Geo, Director commented, "Canadian Palladium is pleased with the results from the initial holes in this program. These intersections report complete assay results that include palladium, platinum, rhodium, gold, copper, nickel and cobalt. High-grade palladium intersections are rare and these results have exceeded our grade expectations based on Canadian Palladium's 2019 Inferred Mineral Resource Estimate of 523,000 oz Pd-Eq at a grade of 1.46 g/t Pd-Eq for East Bull. We look forward to releasing additional results on this exciting Project."

East Bull Target Models - Palladium exploration targets at the East Bull Project include:

• Near-surface "contact-type" palladium mineralization (ten's of meters thick) associated with disseminated sulphides in the "inclusion-bearing gabbro" on the southern margin of the East Bull Gabbro intrusion; and
• High-grade "layered mineralization" (meters thick) associated with high PGM tenor sulphides in the upper part of the "inclusion bearing gabbro".

Additionally, there is discovery potential for structurally controlled "conduit-type" targets that may vertically extensive.

Drill Results - The reported intersections are located on the eastern portion of the Property. The results are part of a 10,000 m drill program with a primary objective of expanding the current Inferred Resource. High-grade intervals occur in the upper part of the "Valhalla Zone" and extend for over 150 m strike length from EB20-03 to EB20-07. A figure showing the hole locations is provided at the end of the release. Currently, drilling is focussed in the western portion of the Property.

Mineralization is contained within the north dipping "inclusion-bearing zone" near the south contact of the Early Proterozoic East Bull Gabbro intrusion. Drill holes EB20-04, -05, and -10 intersected a structure with late diabase dykes and did not intersect significant palladium values. Current drilling indicates the mineralization continues on the northwest side of the 060^o to 075^o striking dyke structure that is approximately 50 m wide.

The diamond drill holes were all drilled at an azimuth of 180^o with dips ranging from -45^o to -70^o. Reported widths are drilled widths, with true widths estimated to be 100% for -45^o holes to approximately 80% of drilled width for -70^o holes.

Palladium equivalent "Pd-Eq" is calculated with US$ metal prices based on 24-month trailing averages as of January 31, 2018 and assumptions on process recovery, smelter payable and refining charges based on comparable projects that were used in the Company's 2019, NI 43-101 Technical Report and Mineral Resource Estimate for the East Bull Property.

Drill Program QA/QC - This phase of the drilling program was carried out under the supervision of Garry Clark, P. Geo., of Clark Exploration Consulting, a Qualified Person as defined in NI43-101. Drill core samples were split using a rock saw by Company staff, with half retained in the core box and stored in the Company's facility in Massey, Ontario. The drill core samples were transported in sealed bags by courier to Activation Laboratories ("Actlabs") in Ancaster, Ontario. Actlabs is an independent ISO/IEC 17025 accredited laboratory. PGE analysis was performed using a 30 grams fire assay with an ICP-MS or ICP-AES finish. Multi-element analyses, including copper and nickel were analysed by four acid digestion using 0.25 grams with an ICP-AES finish. Certified standards, blanks and crushed duplicates are placed in the sample stream at a rate of one QA/QC sample per 10 core samples. Results are analyzed for acceptance at the time of import. All standards associated with the results in this press release were determined to be acceptable within the defined limits of the standard used.

East Bull Project Resource Estimate - P&E Mining Consultants Inc. of Brampton, Ontario has previously prepared a NI 43-101 Mineral Resource Estimate and Technical Report on the Property for the Company dated May 23, 2019 (the "43-101 Report") and filed on SEDAR on August 6, 2019. The NI 43-101 Technical Report estimates a pit-constrained Inferred Mineral Resource of 11.1 million tonnes of 1.46 grams per tonne (523,000 ounces) palladium equivalent. The Property consists of approximately 1,000 hectares covering more than 3.6 kilometres strike length of the of the palladium mineralized "Inclusion-bearing zone" of the East Bull layered gabbroic intrusion.

(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, although Pavey Ark is not aware of any such issues.

(2) The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

(3) The Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines.

(4) Values in the table may differ due to rounding.

(5) PdEq grade based on parameters in May 23, 2019 NI43-101 Resource Estimate and Technical Report. Metal prices are based on 24-month trailing averages at January 31, 2018. In US$ these prices are: Pd - S767/oz; Pt - $973/oz; Rh - $1,000/oz; Au - $1.262/oz; Cu - $2.53/lb; Ni - $4.62/lb; Co - $20/lb.

Mr. Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants Inc., is the independent qualified person (as defined in NI 43-101) responsible for preparing the NI 43-101 Technical Report on the Property. Mr. Puritch has reviewed and approved the technical contents of this press release as they pertain to the Mineral Resource Estimate on the Property. Mr. Garry Clark, P. Geo., of Clark Exploration Consulting, is Canadian Palladium's "Qualified Person" as defined in NI 43-101, who has reviewed and approved the technical content in this press release that pertains to the current drilling program.

Canadian Palladium Resources Inc. August 2020 Drill Plan, East Bull Property

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Canadian Palladium Resources Inc.
Wayne Tisdale, President and CEO
T: (604) 639-4472

Reader Advisory

This news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the advancement of drilling program and the palladium potential on the East Bull property. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. Forward-looking information is 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 anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation and environmental regulation; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; liabilities inherent in water disposal facility operations; competition for, among other things, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, processing and transportation problems; changes in tax laws and incentive programs; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

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