Pampa Metals Provides Updates

VANCOUVER, July 5, 2021 - Pampa Metals Corp. ("Pampa Metals" or the "Company") (CSE:PM)(FSE:FIRA)(OTCQB:PMMCF) is pleased to provide an exploration update for its Block 3 project in northern Chile, as well as a corporate update.

Block 3

Pampa Metals continues to progress with the drone-flown magnetics survey at its 9,900-hectare Block 3 project. As Chile is entering the southern hemisphere winter, weather, and in particular wind conditions have not been ideal for drone flying, and flight windows have been periodically interrupted and the survey currently stands at 50% completion. However, the Block 3 magnetics survey is expected to be completed within the next 2-3 weeks, at which point the drone and associated geophysical equipment will be redeployed to the Company's Block 4 project. Data processing and subsequent interpretations of results will follow.

Block 3 is located in northern Chile and is centered approximately 170 km southeast of the coastal port city of Antofagasta. The property is situated in one of the most geologically productive segments of the Andean Cordillera, along trend and approximately 50 km to 60 km south-southwest of the giant La Escondida copper mine and other related copper deposits in the district.

Large portions of the Block 3 property are characterised by post-mineral Late Tertiary to Recent alluvial and volcanic cover generally less than 150m thick, where the underlying geology is obscured. Elevated, north-south trending sierras border the western and eastern margins of the property, and consist of Paleozoic and Triassic rhyolitic and dacitic lavas, Paleozoic granites, and Jurassic limestones.

Several magnetic features from wide-spaced, regional magnetics data, together with other data, suggest a Tertiary magmatic intrusive complex centered on the Block 3 area. It is interpreted that the possible magmatic intrusive complex could be related to one or more untested porphyry copper systems. The current drone magnetics survey is designed to add significant more detail to the magnetics signature of the project area than is currently possible from the regional data.

OTCQX UPGRADE

The Company is also pleased to announce that effective July 7, 2021, it has been approved and upgraded for trading on the OTCQX^® Best Market, the highest market tier operated by the OTC Markets Group Inc. on which approximately 11,000 U.S. and global securities trade. Graduating to the OTCQX^® Best Market marks an important milestone for companies, enabling them to demonstrate their qualifications and build visibility among U.S. investors.

The OTCQX^® Best Market is intended for established, investor-focused U.S. and international companies. To qualify for the OTCQX^® Best Market, companies must: meet high financial standards; follow best practice corporate governance; and demonstrate compliance with applicable securities laws. The companies found on the OTCQX^® Best Market are distinguished by the integrity of their operations and diligence with which they convey their qualifications.

U.S. investors can find current financial disclosure and real-time Level 2 quotes for the Company on the OTC Markets website.

Qualified Person

Technical information in this news release has been approved by Mario Orrego G, Geologist and a Registered Member of the Chilean Mining Commission and a Qualified Person as defined by National Instrument 43-101. Mr. Orrego is a consultant to the Company.

COVID-19

The global outbreak of COVID-19 has led governments worldwide to enact emergency measures to combat the spread of the virus. Such measures may result in a period of business disruption including reduced operations, which could have a material adverse impact on the Company's results of operations, financial condition and the market and trading price of the Company's securities.

As of the date of this news release, the duration and immediate and eventual impact of the COVID-19 pandemic remains unknown. It is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Company. The outbreak of COVID-19 has not caused significant disruptions to the Company's business to date, with field activities being conducted by Chile-based specialists and consultants, although international travel to Chile for management is currently not practical. Important business communication is largely reliant on digital media. However, the COVID-19 outbreak may yet cause disruptions to the Company's business and operational plans.

ABOUT PAMPA METALS

Pampa Metals is a Canadian company listed on the Canadian Stock Exchange (CSE:PM) as well as the Frankfurt (FSE:FIRA) and OTC (OTCQB:PMMCF) exchanges. Pampa Metals owns a highly prospective 59,000-hectare portfolio of eight projects for copper and gold located along proven mineral belts in Chile, one of the world's top mining jurisdictions. The Company has a vision to create value for shareholders and all other stakeholders by making a major copper discovery along the prime mineral belts of Chile, using the best geological and technological methods. For more information, please visit Pampa Metals' website www.pampametals.com.

ON BEHALF OF THE BOARD

Julian Bavin | Chief Executive Officer

INVESTOR CONTACT

Ioannis (Yannis) Tsitos | Director

investors@pampametals.com

www.pampametals.com