Canadian Palladium Drilling Continues to Extend near Surface Deposit to over 1.6km of Strike Length

Vancouver, October 21, 2020 - Canadian Palladium Resources Inc. (CSE: BULL) (OTCQB: DCNNF) (FSE: DCR1) (the "Company") is pleased to provide an update on the analytical results for diamond drill holes EB-20-01 to EB-20-24 on the East Bull Palladium Property, 90 kilometres west of Sudbury, Ontario. The 10,000 m drill program continues to extend the Palladium mineralization in the Valhalla Zone down dip from the current resource and will test the western strike extension of the Valhalla Zone where it potentially joins with the Garden Zone.

To date, the Company's exploration team has drill tested just over half of the 3.2 km strike length of the 45^o north dipping vari-textured gabbro unit that hosts the Palladium mineralization near the basal contact of the East Bull Gabbro. Drilling has successfully focused on testing the downdip extension of this "contact-type" mineralization that is typically 10's of metres thick. To date all of the intercepts are relatively shallow and within 135 m vertical depth from surface.

Highlights of the 24 diamond drill holes reported to date:

• 12 holes have intersected contact-type mineralization with widths of 10 m or greater with over 1.0 g/t Pd-Eq;
• 2 holes in the west part of the deposit holes EB20-21 and -22 intersected 65 and 71 m, respectively, of greater than 1.0 g/t Pd-Eq;
• 4 holes have intersected high-grade layered mineralization with widths of 2 m or greater with over 6.0 g/t Pd-Eq.

Wayne Tisdale, Canadian Palladium's CEO, commented, "Our exploration team has successfully identified a number of impressive, wide and near-surface intercepts that will significantly add to our Palladium and precious metals resource. We anxiously anticipate the results of our next phase of drilling and continuing to extend the resource in a westerly direction. We expect to complete our 10,000 metre diamond drill program by mid December. Once we've completed all the core analysis, we will immediately commission an updated Mineral Resource estimate."

Drill hole intercepts for holes EB20-01 to -24 are reported in the following table. Drill hole locations and a drill plan are provided at the end of the release.

Diamond Drill Hole Compilation EB-20-01 to EB-20-24

1. Individual demarked samples were sawn in half, bagged, sealed and transported by courier to Activation Laboratories (ISO/IEC 17025 Certified) in Ancaster Ontario. Duplicates and standards were introduced to the sample stream as illustrated. Each sample was analysed using the Activation Laboratories codes RX1, 1C-OES 50 g (Au, Pt, Pd); 1F2 Total Digestion ICP.
2. Reported widths are drilled widths, with true widths estimated to be 90 per cent of drilled widths for minus-60-degree-holes to approximately 85 per cent of drilled width for minus-70-degree holes.
3. Pd-Eq grade based on parameters in May 23, 2019, NI 43-101 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.

Rhodium results are reported for holes EB20-01 to -17 with results pending on the remaining intersections. Rhodium concentrations up to 0.083 g/t over 6 m were intersected in EB20-01. At current prices of US$10,800/oz, Rhodium is a potentially significant contributor to the contained precious metal value of the East Bull Deposit.

The next drill holes will test the western strike extension of the Valhalla Zone where it potentially joins with the Garden Zone. In addition to the drilling, the Company will carry out detailed UAV Magnetic and LiDAR surveys. The exploration team has determined that a detailed magnetic survey will aid in determining optimal drill locations for targeting mineralization. The LiDAR survey will provide a detailed representation of the topographic surface that will assist in drill hole elevation control and for future mineral resource estimation.

Drilling to date has established that mineralization is locally cut by zones of mafic dykes and faults trending at approximately 60^o and 120^o. Although these features locally disrupt mineralization, they are targets for potential structurally controlled conduit-type mineralization that may be vertically extensive (see July 23, 2020 press release). High grades intersected in holes EB20-01, -03 and -07 are located close to the intersection of dyke and fault trends with the vari-textured gabbro. The detailed UAV Magnetic surveys will assist in interpretation of these structures.

Mr. Garry Clark, P. Geo., of Clark Exploration Consulting, is the "Qualified Person" as defined in NI 43-101, who has reviewed and approved the technical content in this press release.

Appendix 1. Drill Hole Location information

Figure 1: East Bull property drill location map

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6337/66451_1a98fcd5d4867a3b_002full.jpg

On behalf of the Board of Directors,

Wayne Tisdale, President and CEO
Canadian Palladium Resources Inc.
T: (604) 639-4452

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 planned exploration program and the expansion of resource at the East Bull palladium 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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